Area of Interest

Cost Containment

U.S. deficit and continuing economic issues combined with the impacts of value-based purchasing and increasing penalties mean that, more than ever, your bottom line is under intense, daily scrutiny. Like most every health system nationwide, you are leaving no stone unturned as you seek out ways to contain costs. The average hospital pharmacy budget can be around 10% of the total budget for a healthcare system, making it one of the largest cost centers in your organization. Balancing cost with quality can prove to be a constant challenge.

With our high-touch approach to better business health, our customers have learned that operating a lean pharmacy means more than just cutting cost. It means driving out unnecessary cost with rigorous management of drug spend, recovering lost indigent care product, streamlining 340B programs, making smart purchasing decisions and uncovering often overlooked sources of cash to which you’re entitled. All of this drives the savings needed to reinvest into the hospital business and shore up the bottom line.

A large health system recently uncovered approximately $8 million of opportunity where the use of a JW modifier proved to deliver a significantly higher return than batching unused drugs.


Generic drugs cost approximately 85% less than brand, according to the FDA.

Georgia Regents Medical Center reduced drug spend by 9.7% in one year.


Expert Perspective

Working smarter

By David Ehlert, Pharm.D., MBA, FASHP

As pharmacists evolve their patient-care practice and further integrate with care teams, there is still the challenge of how to manage the business of the pharmacy, contain costs and drive new revenue opportunities.

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Case Study

Reduce drug spending while you expand clinical availability for patient care

Pharmacy leaders at Georgia Regents Medical Center consistently drive efficient operations with an eye on preparation for the future of healthcare. However, despite application of rigorous pharmacy operations and comprehensive clinical programs, the pharmacy continued to struggle with the need to do more with less.

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Spotlight Solutions

OneStop Acute Care Generics
McKesson OneStop Generics® delivers competitive pricing and industry-leading service levels on generic drugs from one timesaving source. Our expert product sourcing means you get the product you need, when you need it, with fewer shortages. Learn More »

Drug spend analysis
Successfully managing a health system pharmacy’s drug spend requires having a clear view into purchasing history and spending trends. While most hospital pharmacies have access to 80/20 or similar reports, only McKesson’s Drug Spend Intelligence robust online tool allows customers to easily identify and track clinical initiatives that reduce drug spend, while saving them valuable time. Learn More »

Patient assistance program recovery
Through McKesson’s MedSource® program, hospitals can use pharmaceutical manufacturer patient assistance programs to help replace drugs and medical devices dispensed or administered to low-income, uninsured and underinsured patients. Working directly with manufacturers, MedSource managers leverage proprietary software and tools for tracking, reporting and troubleshooting, ensuring successful patient enrollment in each patient assistance program and subsequent approval and replacement of eligible products provided. Learn More »