August 11, 2011

Transitioning into a self-managed pharmacy can help produce significant savings.

Transitioning into a self-managed pharmacy can help produce significant savings.

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. 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 resources provided through
McKesson Pharmacy CentralSM and Drug Spend Trend Report.

“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.

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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