Appalachian Regional Healthcare (ARH) has a long and rich history of service. Spans of time, however, must be monitored carefully, and leaders must look ahead. In 2003, ARH realized its drug dispensing processes were labor-intensive and noncongruent across its nine-hospital system. This was opening the door to potential medication errors, and the inefficiencies drained profits. Aware of McKesson’s cutting-edge pharmacy automation technology and far-reaching services, ARH initiated a partnership.
By 2005, the pharmacy systems of ARH were recreated by McKesson to achieve three central goals: improve medication safety procedures; improve productivity by replacing manual tasks with automation; and improve financial performance by automating medication ordering, inventory control, and distribution. From a financial view, the technology and services provided by McKesson resulted in a 33% return on investment, with a five-year project net present value of nearly $1.5 million. And, from the employees perspective, the changes were equally as significant. The combination of labor becoming increasingly directed toward patients and the risk of medication error being remarkably low positively changed the work environment for pharmacists, nurses and management.
The ability to deliver complete support for pharmacy services makes McKesson an ideal partner. ARH System Director of Pharmacy, Jeffrey Akers, experienced the benefits firsthand. “The financial key to this project was the fact that the products integrate with one another. We now have an integrated medication supply chain in which medication usage and inventories are known in real-time. We are optimizing inventories from a cost standpoint while improving the timely availability of medications for patient care and safety.”
The results of the businesses above depend on a variety of factors that are unique to each business. There is no guarantee that your results will be similar to their result. Each party’s results will depend on the factors of its business. The success of these businesses cannot be used as an indication of future success with these programs.
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