DIY Pharmacy: When does it make sense?
Edward Hospital’s new in-house pharmacy projects first-year savings of $535K
For years, Edward Hospital’s pharmacy operations were managed by an outside source. As with any department, the pharmacy was expected to perform as a strong member of the hospital business.
Bringing the pharmacy in-house was primarily a financial decision. Without the support and guidance of the McKesson team, the experience wouldn’t have been nearly as satisfying or as successful.
— Phil Williams, Administrative Director of Pharmacy Services
However, because the pharmacy operated as a separate system, it lacked transparency. As a result, managerial oversight and control over the pharmacy’s operations were limited.
With these concerns in mind, and potential for missed financial opportunity, Edward Hospital management enlisted the services of McKesson Pharmacy Optimization® consultants and tapped into the proprietary resources provided, including Drug Spend Intelligence. “McKesson’s team tracked and assessed all our operations,” said Phil Williams, administrative director of pharmacy services. “From their analysis of very detailed data, they laid out a plan where we could run the pharmacy ourselves — and run it well — in just four months. The McKesson Pharmacy Optimization team proved they knew our business every step of the way. I had every confidence that the job would be done right, and we were all excited to have the pharmacy under our control, especially with the backing of McKesson technology.”
The task of setting up pharmacy automation and distribution services took extensive planning, training and hard work. The McKesson Pharmacy Optimization team partnered with hospital staff to understand and then support the complex needs of the organization with a powerful lineup of McKesson solutions. Within four months, Edward Hospital possessed an immensely capable, automated pharmacy — run by hospital staff — that fully manages inventory, drug costs and drug utilization. Due to the improved management of pricing and inventory, a savings of $535K is projected for the first year.
- Industry News