SUBJECT
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A Resolution of the City Council of the City of Laredo, Texas, authorizing the City Manager to accept and enter into a continuation contract from the Health Resources & Services Administration 340B Drug Pricing Reimbursement Program, in the total amount of $350,000.00, with no match for the City of Laredo Public Health Department for the term period from October 01, 2025 through September 30, 2026. Funds will be accounted for in the Laredo Public Health Department Fund - STD 340B Program.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
• Goal 7.1: Improve access to health services for all residents.
• Policy 7.1.2: Ensure affordability of health services for low-income, uninsured, and underinsured populations.
• Goal 7.5: Strengthen public health systems and operations.
• Policy 7.5.1: Ensure public health programs are financially sustainable and responsive to community needs.
• Policy 7.5.4: Promote collaboration with federal and state programs to expand local healthcare access.
Summary of alignment: This resolution aligns with the Viva Laredo Comprehensive Plan by expanding access to affordable prescription medications for uninsured and underserved residents. The HRSA 340B program allows the City of Laredo Public Health Department to stretch limited resources further, ensuring more patients can access essential drugs and comprehensive care services. By reducing barriers to affordable treatment and strengthening local participation in a national program, the resolution supports the plan’s goals of health equity, financial sustainability, and expanded access to preventive and treatment services.
PREVIOUS COUNCIL ACTION
On February 18. 2025, Council approved Resolution 2025-R-41.
BACKGROUND
The Health Resources & Services Administration (HRSA) 340B Program enables covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing comprehensive services. Eligible health care organizations/covered entities are defined in stature and include HRSA-supported health centers and look-alikes, Ryan White clinics and State AIDS Drug Assistance programs. To participate in the 340B Program, eligible organizations and covered entities must register and be enrolled with the 340B program and comply with all 340B Program requirements. Once enrolled, covered entities are assigned a 340B identification number that vendors verify before allowing an organization to purchase 340B discounted drugs, expanding pharmaceutical access to underserved uninsured, and low-income populations.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends that Council approve the Resolution.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: STD 340B Program
Account #: 226-6515
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
The revenue account 226-0000-373-2080 and the expenditure division is 226-6515 with Project Number HEMR02.