Nonprofit Medi-Cal providers concerned about Newsom’s plan to streamline prescription drug buying

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In January, Gov. Gavin Newsom ordered all state departments to participate in a bulk purchasing program for prescription drugs. The goal was cost-savings for the government and cheaper drugs for people who need them. But, nonprofit health clinics and hospitals say they could lose millions of dollars per year under this plan. That’s because under current regulations they can get these drugs at a discount, and then bill insurers at standard rates and pocket the difference. They say they use the money for programs that help many of California’s poorest patients.