Los Angeles Times

Vaccine rollout relies on pharmacy giants

CVS and Walgreens will immunize in nursing homes under undisclose­d deal with Trump administra­tion.

- By Noam N. Levey

WASHINGTON — Plans to begin administer­ing COVID- 19 vaccines this month to millions of vulnerable Americans will depend not on public health department­s but largely on the nation’s two largest for- profit pharmacy chains.

CVS Health and Walgreens Boots Alliance were tapped by the Trump administra­tion to vaccinate more than 3 million residents of nursing homes and other long- term care facilities, which are expected to get the first wave of vaccines perhaps as soon as this week.

The leading role in the vaccinatio­n campaign highlights the power and reach of the two companies, which together have about 20,000 pharmacy locations nationwide. It also underscore­s how, after years of underinves­tment in public health, the U. S. is highly dependent on for- profit companies for critical public services such as immunizati­ons.

“We’re in a situation where we don’t have a public sector that’s able to do something like this,” said Jeffrey Levi, former director of the nonprofit Trust for America’s Health. “We have to work with the system we have.”

Federal officials say the partnershi­p with the pharmacy companies is a model that will rapidly get vaccines

to needy patients.

“I’m incredibly confident that these public- private partnershi­ps are ready to execute,” U. S. Army Gen. Gus Perna told reporters last week. Perna is chief operating officer of Operation Warp Speed, the federal initiative set up by the Trump administra­tion to support developmen­t and distributi­on of COVID- 19 vaccines and medicines.

But some public health leaders remain leery of the heavy reliance on multibilli­on- dollar corporatio­ns whose primary duty is to their shareholde­rs, espe

cially as the full scope of the companies’ vaccine distributi­on work remains secret.

Neither CVS and Walgreens nor the U. S. Department of Health and Human Services would provide copies of the signed agreements between the companies and the federal government.

“At the end of the day, these are businesses,” said Lori Tremmel Freeman, who directs the National Assn. of County and City Health Officials. “They are not the same as a health department, whose business is keeping people safe. Health department­s have no other

motive. They don’t care about the bottom line.”

Other healthcare experts warned that while CVS and Walgreens have the logistical capability to get vaccine to thousands of nursing homes and assisted living facilities, they may not be the best option to help other vulnerable population­s, including the low- income and minority communitie­s hit hardest by the pandemic.

“We’ve learned over the years that the private sector, in general, does a really poor job of reaching out to at- risk population­s,” said Christophe­r Koller, the former state

insurance commission­er in Rhode Island who heads the Milbank Memorial Fund, a nonprofit supporting research on the healthcare system.

Walgreens, though it bills itself as a “health and wellness enterprise,” continues to sell cigarettes and other tobacco products, despite repeated pleas from public health officials to end the practice. ( CVS stopped selling tobacco products in 2014.)

Senior CVS and Walgreens officials insist they’re dedicated to the public health effort.

“We’re a company that has a purpose, and that purpose is helping people on the path to better health,” said CVS Senior Vice President Chris Cox, who is working with the federal government on the vaccine distributi­on effort.

Rick Gates, Walgreens’ senior vice president for pharmacy, noted that vaccinatio­n clinics “are pretty core to what we do.”

The initiative has been welcomed by the long- term care industry, which complained for months that the federal government failed to get vital protective equipment to its facilities.

There is little dispute about the importance of the immunizati­on effort. The pandemic has devastated long- term care facilities since the f irst major outbreak at a nursing home was recorded in February in Kirkland, Wash.

More than 100,000 longterm care residents and staff have died, accounting for about 40% of the nation’s COVID- 19 fatalities, according to a tally by the nonprofit Kaiser Family Foundation.

The vulnerabil­ity of these institutio­ns prompted the Centers for Disease Control and Prevention to advise states to give first priority to residents of nursing homes and healthcare workers when vaccines become available. Federal health officials said they selected CVS and Walgreens to lead the effort for nursing homes because of the companies’ vast network and experience serving long- term care facilities, many of which already work with them to get annual f lu vaccines for residents.

“We solicited input and had discussion­s with many different potential partners, the vast majority of whom told us they simply could not deliver on these capabiliti­es,” said Paul Mango, deputy chief of staff at the federal Department of Health and Human Services.

Under the CDC’s Pharmacy Partnershi­p for LongTerm Care Program, nursing homes and other longterm care facilities were invited in October to select one of the pharmacy chains to deliver and administer vaccine to their residents and staff. More than 25,000 facilities selected CVS, according to the company. About 23,000 chose Walgreens, said Gates.

Federal health officials and company leaders anticipate that once the f irst vaccines win regulatory approval from the Food and Drug Administra­tion, they will be shipped out within a day or two. In many cases, the vaccines will probably go to distributi­on hubs set up by the pharmacies, which in turn will dispatch vaccinatio­n teams equipped with protective equipment to longterm facilities to begin immunizati­ons.

The vaccines, which the federal government has purchased, will be administer­ed at no cost to patients or to long- term care facilities. But CVS and Walgreens can bill for administer­ing the shots.

The Medicare payment rate is $ 16.94 for the first shot and $ 28.39 for the second, according to the fee schedule from the federal Centers for Medicare and Medicaid Services. Both Pfizer and Moderna, whose COVID- 19 vaccines are expected to win approval f irst, require two shots.

That means that CVS, which anticipate­s vaccinatin­g more than 2 million residents of long- term care facilities, most of whom are likely covered by Medicare, stands to be paid at least $ 90 million. Walgreens wouldn’t disclose how many people it expects to vaccinate.

Importantl­y, the companies will have to report vaccinatio­n data to local, state and federal public health off icials, a key component of any vaccinatio­n initiative.

With Pfizer’s vaccine scheduled to be reviewed by an FDA panel Thursday, the f irst shipments of vaccine could be headed out by the weekend, according to federal health officials. Moderna’s vaccine is scheduled for review the following week.

Dr. Moncef Slaoui, the chief science advisor to Operation Warp Speed, told reporters there should be ample vaccine to reach all 3 million residents of longterm care facilities by the end of the year.

 ?? Gina Ferazzi Los Angeles Times ?? A COVID- 19 PATIENT is evacuated from Magnolia Rehabilita­tion and Nursing Center in Riverside. Under a government deal, CVS and Walgreens will vaccinate more than 3 million residents of long- term care facilities.
Gina Ferazzi Los Angeles Times A COVID- 19 PATIENT is evacuated from Magnolia Rehabilita­tion and Nursing Center in Riverside. Under a government deal, CVS and Walgreens will vaccinate more than 3 million residents of long- term care facilities.

Newspapers in English

Newspapers from United States