News Release

CHIPPEWA VALLEY HEALTH CLINIC RECEIVES $20,000
BAXTER INTERNATIONAL FOUNDATION GRANT

Grant Funds an Enhanced Prescription Drug Program To Counter Rising Costs

EAU CLAIRE, Wisc., February 5, 2003 - The Baxter International Foundation, the philanthropic arm of Baxter International Inc., has awarded a $20,000 grant to the Chippewa Valley Health Clinic, which is the only free community clinic within 90 miles of Eau Claire, Wisc. The clinic will hire a part-time pharmaceuticals coordinator to implement cost cutting measures that will help sustain its free medication program. Hundreds of working poor people in Northwest Wisconsin rely on the program as their only source for prescription drugs.

Like health-care providers nationwide, the Chippewa Valley Health Clinic is facing dramatically rising drug expenditures. The clinic spent $66,000 on prescription medications in fiscal year 2001. In fiscal year 2002, the clinic's medication expenses were $128,000 - about 70 percent of the clinic's total annual budget of $180,000.

Soaring drug prices are a major factor in the increase. In a report issued this year, the National Institute for Health Care Management Research and Educational Foundation found that spending on outpatient prescription drugs has climbed by a least 17 percent per year since 1998. The report also found that drug price increases accounted for 37 percent of the overall drug spending growth in 2001.

"The price of prescription drugs has increased disproportionately compared to other health care costs. Free clinics and underinsured people are the hardest hit by the price increases," said Susan Strom, manager of the Chippewa Valley Health Clinic.

Another factor contributing to Chippewa Valley Health Clinic's rising drug expenditures is a shift toward more chronically ill patients. Last year, the clinic served 659 patients through 1,900 clinic visits. About one-third of those patients have complex, chronic illnesses and rely on the clinic as their only primary care provider. The typical patient is middle aged, works two or three part-time jobs that do not provide health benefits, and has one or more chronic health conditions, such as diabetes, hypertension or congestive heart failure.

The Baxter International Foundation grant will enable the clinic to hire a part-time pharmaceuticals coordinator to manage the supply and distribution of medications. The new staff member will maximize the use of free samples through better relationships with pharmaceutical company representatives and make greater use of pharmaceutical companies' patient assistance programs (PAPs). Previously, the clinic was unable to take full advantage of PAPs without a staff person to manage the extensive paperwork required by the pharmaceutical companies.

The Chippewa Valley Health Clinic was formed in 1995 through grassroots community effort to provide free medical care and medications to needy individuals. Patients come from 15 counties in Northwest Wisconsin. More than 90 percent of patients earn less than $10,000 per year. The clinic has 1.5 staff members and relies on 250 on-site volunteers. About 25 area specialists accept referrals from the clinic at no charge. Clinics are held every Tuesday night on a first-come, first served basis and two Thursday evenings per month by appointment.

"The Chippewa Valley Health Clinic is a small, but very well run clinic that serves people in Northwest Wisconsin who have nowhere else to turn for medical care," said Patricia Morgan, executive director, The Baxter International Foundation. "Their carefully planned strategy for reducing medications expenses is just one example of the smart business planning that has helped them operate efficiently and provide high quality health care to hundreds of people on a small budget."

As the philanthropic arm of Baxter International Inc., the Baxter International Foundation helps to increase access to health care in the United States and other countries. In 2001, foundation grants totaling $4.8 million improved access to care for children, the uninsured and the elderly, helped prevent child abuse and neglect, promoted health education, expanded education opportunities for health-care providers, and helped victims of global disasters.

Baxter International Inc. is a global medical products and services company that, through its subsidiaries, provides critical therapies for people with life-threatening conditions. Baxter employs more than 300 people in Wisconsin at its facilities in Eau Claire, Green Bay, Janesville, Madison, Menasha, Onalaska, Oshkosh, and Sheboygan.

For information about volunteering at the Chippewa Valley Health Clinic, call (715) 839-8477.

FOR ADDITIONAL INFORMATION:

Media Contacts: Raquel Powers, Baxter, (847) 948-4557 Susan Strom, Chippewa Valley Health Clinic, (715) 839-8477