VFC

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A paper written by John Fontanesi and myself was recently published in the October 2009 edition of the American Journal of Managed Care. The paper is titled “Delivering Vaccines: A Case Study of the Distribution System of Vaccines for Children.” The abstract of the paper is below:

Objective: To evaluate the efficacy of the central- 
ization by the Centers for Disease Control and 
Prevention of their pediatric vaccine distribution 
system. 
Study Design: In March 2007, the Centers for 
Disease Control and Prevention began a pilot 
program to reform the Vaccines for Children  
(VFC) program. All California VFC providers  
were required to place vaccine orders under  
the centralized logistic system of the Vaccine  
Management Business Improvement Project 
(VMBIP). For this study, VFC ordering, use, 
and delivery data were collected from 2 large 
southern California healthcare providers that 
collectively served more than 200,000 children. 
Data collection occurred between January 2005 
and June 2008. 
Methods: This case study measures the change 
in the mean VFC delivery times before and after 
the VMBIP.  The data underwent simulation to 
estimate the number of days per year a provider 
would have zero VFC inventory before and after 
the VMBIP. 
Results: After the VMBIP was implemented, 
delivery times increased from 1.6 to 12.3 business 
days (P <.001). The probability that VFC deliveries 
took longer than 1 week increased from 7%  
before the VMBIP to 89% afterward. Our simulation 
demonstrates that for 7 of 11 vaccines investigat- 
ed there was a statistically significant increase in 
the number of days a provider would be without 
VFC (P <.01). 
Conclusion: Although the VMBIP was implement- 
ed to save costs, this study finds that during the 
VMBIP’s initial implementation timeline, providers 
experienced longer delivery delays and a higher 
probability of a VFC stockout. 
(Am J Manag Care. 2009;15(10)751-754)
  • Objective: To evaluate the efficacy of the centralization by the Centers for Disease Control and Prevention of their pediatric vaccine distribution system. 
  • Study Design: In March 2007, the Centers for Disease Control and Prevention began a pilot program to reform the Vaccines for Children  (VFC) program. All California VFC providers  were required to place vaccine orders under  the centralized logistic system of the Vaccine  Management Business Improvement Project (VMBIP). For this study, VFC ordering, use, and delivery data were collected from 2 large southern California healthcare providers that collectively served more than 200,000 children. Data collection occurred between January 2005 and June 2008. 
  • Methods: This case study measures the change in the mean VFC delivery times before and after the VMBIP.  The data underwent simulation to estimate the number of days per year a provider would have zero VFC inventory before and after the VMBIP. 
  • Results: After the VMBIP was implemented, delivery times increased from 1.6 to 12.3 business days (P <.001). The probability that VFC deliveries took longer than 1 week increased from 7%  before the VMBIP to 89% afterward. Our simulation demonstrates that for 7 of 11 vaccines investigated there was a statistically significant increase in the number of days a provider would be without VFC (P <.01)
  • Conclusion: Although the VMBIP was implemented to save costs, this study finds that during the VMBIP’s initial implementation timeline, providers experienced longer delivery delays and a higher probability of a VFC stockout. 

(Am J Manag Care. 2009;15(10)751-754)

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Vaccination is one of the most cost effective medical treatments we have.  It is important that providers vaccines in a timely manner.

In attempt to streamline vaccine distribution systems, the CDC created Vaccine Management Business Improvement Project (VMBIP).  Instead of having providers place orders with the grantee (i.e.: state health department), and then having the grantee ship them to a local distributor, VMBIP is an attempt to reduce warehouse costs by shipping vaccines from a centralized warehouse directly to the provider.  This may save money, if the vaccines are sent in a timely manner.

My presentation at the National Immunization Conference analyzed some data from southern California providers and found that the time from the vaccine order being place to delivery increased from 1.6 work days to 13.5 workdays after VMBIP was implemented.  I received other anecdotal evidence that these delays were affecting the vaccine supply of many California providers, but I did not know how efficiently the VMBIP program was operating in other states.

I found that California’s 13.5 day delay may not be so bad compared to the rest of the country.  One nurse from Texas said that vaccines delivery could take as long as 6 weeks.  There was significant variability so that the clinic would run out of vaccines occasionally so would have to place their orders early.  Sometime the vaccines would arrive within 2 days, but since the provider had anticipated a 2-4 week delay, there was no room in the refrigerator to store the vaccine.

Another conference attendee explained to me her experience in Minnesota.  Vaccines must be stored at a certain temperature to ensure they do not spoil.  Some winter days are so cold in Minnesota that the state public health department would advise distributors not to ship on those days to insure that they would not freeze.  Under the new, centralized VMBIP system, the national warehouse–which is run by McKesson–was not sensitive to these regional variations.  Minnesota providers have received frozen vaccines since McKesson did not know about how Minnesota winters effect vaccines.  These frozen vaccines are completely useless and must be discarded.

Overall, I doubt that centralized vaccine distribution is a good model.  Wal-mart can operate a centralized distribution system because all the stores are on the same computer network, they work under the centralized location, and receive extensive logisitcs training.  Further, Wal-mart is a hierarchical organization.  On the other hand, physicians are not integrated into a public health IT database–VACMAN not withstanding.  Further, providers are well trained on medical issues, but not logistics or filling out forms.  Since vaccine distribution is not a hierarchical system, a more flexible, less centralized, system would likely be optimal.

I would like to thank all the people who attended my presentation today at the National Immunization Conference and all the helpful feedback I have received.

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