Transforming the pharmacy into a strategic asset
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- Rosalyn Briggs
- 8 years ago
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1 Transforming the pharmacy into a strategic asset Controlling drug costs Drug Cost Control Service
2 Drug Cost Control benefits With a projected year over year increase in drug costs of as much as three percent across all settings, organizations must find ways to contain pharmacy costs. Consider the following: Due to inaccurate or improperly maintained pharmacy charge masters, hospitals on average are losing 9 16 percent of their pharmacy charges Only 29 percent of hospitals monitor formulary compliance which can lead to inefficiencies in drug utilization By 2020, drug spending is projected to account for 11.1 percent of national health expenditures This is why hospitals BIG and small are saving money by reducing the cost of medications while sustaining efficacy Combat flat margins with this proven program Drug savings quotient Cost = Price x Utilization Phase 1: Quick success, low impact Reduce drug costs (1-2% savings) Lowest price Inventory / purchasing Optimized automation Phase 2: Long-term, high impact Optimize drug utilization (2-4% savings) Prescribing benchmark data Targeted prescribing programs Measurements / scorecarding
3 Take control of drug costs. Our deep clinical and cost control expertise can help you identify drug cost savings through utilization-based data. Cardinal Health does more than identify savings opportunities. Our experts help you implement and maintain cost savings, providing sustained improvements in: 1 Purchasing 2 Formulary management 3 Forecasting drug expenditures Our experienced clinical pharmacist Analyzes drug purchase and use patterns Provides project plan templates, toolkits and expertise Helps you implement drug cost control initiatives Continuously monitors your progress to ensure sustained savings Our proprietary, web-based analytics system Identifies top drug cost drivers Benchmarks your performance Forecasts drug expenditures Best practices Data-driven It takes a team. Cardinal Health has the expertise and the proven processes to help you reduce drug costs. Of course, each hospital has unique challenges and a collaborative approach is essential for success. Processfocused Proven strategies Cardinal Health works side-by-side with: Pharmacy staff Medical staff Information systems staff Hospital leaders
4 Savings achieved 93-bed hospital $108, bed hospital $20, bed hospital $425,557 Small hospitals < 100-beds 116-bed hospital $646, bed hospital $728, bed hospital $800, bed hospital $462, bed hospital $614,097 Community hospitals > 100-beds 609-bed hospital $1,399, bed hospital $592,320 3,326-bed hospital $1,438,562 Large academic medical centers 6 hospitals $1.8 million 10 hospitals $2.3 million 13 hospitals $1.3 million 10 hospitals + 20 other healthrelated businesses $4.5 million Health systems
5 Are you trying to reduce your overall pharmaceutical expenses? Rising pharmaceutical costs and declining reimbursements are having a profound effect on profitability. Across the country, healthcare organizations of every kind from small rural hospitals to large health systems are controlling drug costs by working with the experts at Cardinal Health. On average, our experts reduce annual drug spend by up to three percent. Cardinal Health can help. Are you already using generics? Already looked at your purchasing contracts? Need to take it to the next level? Have limited resources to do it? Don't know where to look next?
6 Cardinal Health works with hospitals and health systems across the country to help them: Add value Lower operating costs Improve care quality Enhance patient satisfaction Because we believe that... When a hospital pharmacy is leveraged to its full potential, it can become a key driver for achieving the organization's strategic agenda. The Four F Framework Find meaningful growth Fix inefficiencies Fulfill quality care mission Follow the patient New business Reimbursement optimization Government funding Cost savings Operational efficiency Supply chain optimization Quality care Clinical outcomes Continuity of care Patient safety Population health management Readmission management Top-line impact, such as meaningful growth opportunities, cost savings, reimbursement capture and federal funding Remove operational obstacles and waste, optimize spend and apply Lean strategies Deliver on the vision of quality care to every patient through core measures, utilization, clinical outcomes, physician alignment, minimize length of stay and patient satisfaction Patient outcomes and hospital compliance starts at pre-admission and continues post-discharge cardinalhealth.com 2013 Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health. All other marks are property of their respective owners. Lit. No. 1ACP12242 (08/2013) Cardinal Health 7000 Cardinal Place Dublin, Ohio
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