Transforming the pharmacy into a strategic asset Improving productivity through automation optimization 700-bed integrated delivery system in the South
Success snapshot When a hospital invests heavily in Automatic Dispensing Cabinets (ADCs), optimizing the performance of every cabinet is essential. Otherwise, ADCs can sap nursing and pharmacy productivity and erode patient satisfaction and safety. This is why one hospital in the South engaged the automation experts at Cardinal Health. The customer: 700-bed integrated delivery system in the South The challenge: Improve the utilization and ROI of ADCs The solutions: Automation Optimization Service Inventory Optimization Service Drug Cost Control Solution The benefits: Reduced stock-outs More efficient management and restocking of ADCs Controlled access to authorized doses Key learnings: Optimal ADC management requires specialized training for staff members Inventory management best practices improve workflow and savings Using external consultants accelerates success Reduction in stock-outs: 50%
Stock-outs have a huge impact on productivity The impact: The Nurses have to wait for medications to be delivered to the patient floor. Pharmacy technicians have to stop whatever they're doing and run around restocking depleted medicine cabinets. Nobody likes stock-outs. Stock-outs can be frustrating, expensive and sometimes dangerous. The good news is they can also be significantly reduced, which is exactly what happened with a 700-bed integrated delivery system in the South. The hospital had 80 ADCs and engaged Cardinal Health to help them in three key areas: 1 2 3 Medication availability Technician labor Data analysis STOCK-OUTS More productive nurses More satisfied patients More efficient pharmacy staff The True Cost of Stock-Outs Wasted time and money Disrupted workflow Frustrated nurses Endangered patients Best practices Willingness to try new things Open & honest communications Strong partnership It takes continuous collaboration to make meaningful changes. Improvements in inventory availability and cost control are dependent on buy-in from the staff. Cardinal Health subject matter experts (SMEs) worked closely with hospital personnel to help reduce stock-outs and refill time.
Three challenges. Three Solutions Medication availability: Automation Optimization Service Maximize ADC investments and increase doses dispensed 1. Improve monitoring and utilization of ADCs 2. Bring balance to inventory control levels and labor utilization 3. Adjust ADC configuration for high-alert and look-alike sound-alike meds 4. Design and implement changes to policies and procedures to reduce stock-outs, decrease refills and increase doses dispensed 5. Reduce excess technician labor through best practices Technician labor: Inventory management Standardize inventory management practices to improve workflow 1. Create and implement a strategy to optimize unit-dose logistics and distribution 2. Track and manage inventory, so the right drug in the right dose is always in reach 3. Reduce excess technician labor through best practices Data analysis: Analytics Drug Cost Control Service: Make more informed formulary decisions and therapeutic initiatives 1. Assess individual hospital performance 2. Analyze and benchmark the drug cost, and utilization of individual DRGs 3. Assess the clinical and financial impact 4. Track data in real time Monitor progress 5. Aggregate data monthly and quarterly 6. Find opportunities to standardize formulary across all sites 80 With ADCs small process improvements deliver BIG savings Improve monitoring and utilization Balance inventory control levels to lower stock-outs Adjust configuration for high-alert and look-alike / sound-alike medications Minimize potential for diversion and password mistreatment A multi-disciplinary approach Cardinal Health experts worked side-by-side with the pharmacy: Operations director Systems manager for automation Technician supervisors Staff technicians
The bottom line By relying on the expertise of Cardinal Health, the integrated delivery system was able to transition to once-daily ADC refills while decreasing stock-outs. Cardinal Health improved nursing and pharmacy staff productivity by increasing medication availability. The system also improved safety by minimizing the potential for drug diversion. 50% reduction in stock-outs in one year 0.50% stock-out rate - surpassing Cardinal Health best practice of 0.60% 65 hours/month labor saved in in one year 11.5 to 13.3 improved vend-to-refill ratio in one year 57% decrease in users without Bio IDs
Cardinal Health continues to work with this integrated delivery system 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. 1ACP13-8723 (11/2013) Cardinal Health 7000 Cardinal Place Dublin, Ohio 43017 877-300-9180