EXHIBIT 10.8
FIRST AMENDMENT
TO
MAIL SERVICE PROVIDER AGREEMENT
BY AND BETWEEN
NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.
AND
THRIFT DRUG, INC. d/b/a EXPRESS PHARMACY SERVICES
THIS AMENDMENT is effective as of the 1st day of January, 1997 by and
between NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC. (hereinafter "Sponsor") and
THRIFT DRUG, INC. d/b/a EXPRESS PHARMACY SERVICES (hereinafter "Express").
W I T N E S S E T H :
WHEREAS, effective as of the 1st day of July, 1996 the Sponsor and Express
entered into a Mail Service Provider Agreement ("hereinafter the "Agreement") in
order to provide mail order prescription drug services to Eligible Members of
Sponsor's prescription drug program; and
WHEREAS, in addition to the pharmacy services provided by Express pursuant
to the terms of the Agreement, Express desires to provide Sponsor with its
therapeutic drug management program (hereinafter "TDMP"); and
WHEREAS, Sponsor desires to participate in such TDMP; and
WHEREAS, this Amendment shall only be applicable to mail order
pharmaceutical services provided to SUNDAY SCHOOL BOARD (hereinafter "SSB").
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NOW, THEREFORE, the Agreement shall be amended by adding the following new
Paragraphs:
29. Therapeutic Drug Management Program
(A) Express shall perform the following services:
(1) establish an independent advisory board comprised of
medical doctors and doctors of pharmacy to advise Express of facts as respects
therapeutic equivalent medications.
(2) contact the Covered Person and the Covered Person's
physician to obtain consent for conversion to a lower cost, therapeutic or
generic equivalent medication, any and all of which are consistent with
Sponsor's request for specific therapeutic classes to be managed and specific
drugs within the referenced class to be substituted.
(3) upon obtaining the appropriate consent(s), Express will
convert the prescribed drug to a lower cost, therapeutic or generic equivalent
medication.
(4) provide Sponsor with monthly reports of drug conversions
and applicable cost savings.
(5) send invoices to Sponsor for an amount equal to fifty
percent (50%) of the cost savings. Sponsor will then xxxx SSB for such amount.
When Sponsor has received payment from SSB on such invoice, Sponsor will remit
eighty-five percent (85%) of the amount paid by SSB to Express.
(B) Express represents and warrants to Sponsor that the therapeutic
or generic equivalent medications have met all the applicable standards imposed
by the U.S. Food and Drug Administration.
(C) Sponsor agrees to make payments to Express as discussed in
Paragraph 29(A)(5) above within fourteen (14) days after Sponsor's receipt of
payment from SSB.
30. Either party shall have the right to terminate this Amendment only,
with or without cause, upon ninety (90) days prior written notice to the other
party.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective authorized representatives as of the date
hereinabove first written.
NATIONAL MEDICAL HEALTH CARD
SYSTEMS, INC.
By:
/s/ Xxxxx Xxxxxxx
---------------------------------
Xxxxx Xxxxxxx, President
THRIFT DRUG, INC. d/b/a EXPRESS
PHARMACY SERVICES
By:
/s/ Xxxxx X. Xxxxx
---------------------------------
Vice President, Managed Care
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