Cardinal Health, Inc. · NYSE:CAH
Cardinal Health — Corporate Update (2022)
17 slides from Cardinal Health's corporate update, Jul 16, 2022
Slide 1: Overview of Cardinal Health's Controlled Substance Monitoring Program and Injunctive Relief Changes
Overview of Cardinal Health’s Controlled Substance Monitoring Program and Injunctive Relief Changes 2022 © 2022 Cardinal Health. All Rights Reserved.
Slide 2: Disclaimers
Disclaimers • This presentation is intended only to be a high-level overview of certain parts of Cardinal Heath’s controlled substance monitoring program • This presentation does not identify, describe, or cover all aspects of Cardinal Health’s programs regarding the distribution of controlled subst
Slide 3: Components of Cardinal Health's Controlled Substances Monitoring Program (CSMP)
Components of Cardinal Health’s Controlled Substances Monitoring Program (CSMP) SUMMARY Know your customer • Screening and evaluation of current and prospective customers Order Analytics (Electronic Monitoring) • Used every day to spot, stop, and report suspicious orders • Threshold setting, monitor
Slide 4: CSMP Team
CSMP Team Cardinal Health’s CSMP Team includes: Investigators Statistical Pharmacists Compliance auditors + data Officers analysts 4 © 2022 Cardinal Health. All Rights Reserved.
Slide 5: CSMP Team - Locations
CSMP Team - Locations Cardinal Health CSMP Team resides in: Company All distribution Field headquarters centers 5 © 2022 Cardinal Health. All Rights Reserved.
Slide 6: Example roles of the CSMP Team
Example roles of the CSMP Team Determines which customers are approved to receive controlled substances/listed chemicals with authority to suspend customers Analyzes all orders for controlled substances/listed chemicals against the established threshold through the automated order monitoring program
Slide 7: Thresholds used to identify suspicious orders
Thresholds used to identify suspicious orders • “Thresholds” are ceilings above which Cardinal Health will not ship CS without further investigation as a potential suspicious order o Order exceeds a threshold = “threshold event” • Set on a per customer, per drug family basis by DEA base code, indepe
Slide 8: Orders above established threshold
Orders above established threshold • Orders above threshold are automatically held and not filled • An order above threshold, unless rationale is readily available to justify releasing the order, will not be filled and will be reported to DEA and, where required, to state regulators • Reported order
Slide 9: Update | Distributor Injunctive Relief Terms
Update | Distributor Injunctive Relief Terms OVERVIEW 9 © 2022 Cardinal Health. All Rights Reserved.
Slide 10: Injunctive Relief overview
Injunctive Relief overview Controlled Substances Monitoring Program Independence* Oversight Mandatory training Main components Red flags for distributors Ongoing site visits Thresholds Suspicious order reporting Terminated customers Monitor – Five year term *Sales personnel cannot make decisions: (i
Slide 11: Distributor Injunctive Relief Terms: Onboarding
Distributor Injunctive Relief Terms ONBOARDING | ADDITIONS* • Interview Pharmacist in Charge (PIC) • For 90-day period, obtain Pharmacy Customer Data: • Total prescriptions and dosage units for all NDCs for 90- day period • Top 5 prescribers for each Highly Diverted Controlled Substances (HDCS) and
Slide 12: Distributor Injunctive Relief Terms: Ongoing Due Diligence
Distributor Injunctive Relief Terms ONGOING DUE DILIGENCE | ADDITIONS* • Periodically review pharmacy customers’ performance in satisfying their corresponding responsibilities. • On an annual basis, obtain updated pharmacy questionnaires from 500 Customers to include: o Top 250 Pharmacies by volume
Slide 13: Distributor Injunctive Relief Terms: Threshold Setting
Distributor Injunctive Relief Terms THRESHOLD SETTING | ADDITIONS* • Threshold setting and maintenance must take into account the ordering history of customers within similar geographic regions and within a chain for chain customers. • Verify customer’s statement about its business model (to the ext
Slide 14: Enhancement Highlights
Enhancement Highlights • Implementation of new threshold setting methodology developed by Analysis Group • Thresholds set based on customer orders and peer group assignment • Sales personnel not involved in CSMP decisions • Will not know thresholds or accruals • Threshold reviews to originate with a
Slide 15: Discussion + Questions
Discussion + Questions © 2022 Cardinal Health. All Rights Reserved.
Slide 16: Appendix
Appendix © 2022 Cardinal Health. All Rights Reserved.
Slide 17: Key Terms
Key Terms “Pharmacy Customer Data” shall contain (or, in the case of non- “Highly Diverted Controlled Substances.”* aggregated data, shall be sufficient to determine) the following: a) A list of the total number of prescriptions and dosage units for each (i) Oxycodone NDC for all Controlled Substanc