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Impact of Trained vs. Non-Trained Pharmacy Purchasing Professionals on Pharmacy Finances. Richard Ponder, MBA, CPhT, CPP, CEPP, CMRP Pharmacy Supply Chain Supervisor East Jefferson General Hospital, Metairie, LA. 1. Introduction. 2. 3. 4. Agenda. Current Survey. Training. Resources.

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Impact of trained vs non trained pharmacy purchasing professionals on pharmacy finances

Impact of Trained vs. Non-Trained Pharmacy Purchasing Professionals on Pharmacy Finances

Richard Ponder, MBA, CPhT, CPP, CEPP, CMRP

Pharmacy Supply Chain Supervisor

East Jefferson General Hospital, Metairie, LA


Agenda

1 Professionals on Pharmacy Finances

Introduction

2

3

4

Agenda

Current Survey

Training

Resources

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Current environment
Current Environment Professionals on Pharmacy Finances

  • Pharmacy cost continue to exceed inflation and continue to exceed the rate of increase for total healthcare expenditures.

  • Healthcare reform will drive more supply chain cost cutting. Labor vs. Supplies

  • Pharmaceutical supply chain executives are looking to maximize their operations in the face of changing legislation, expanding scope and mounting pressure on cost control.

  • Most hospitals emphasize education for their clinicians; however, many Pharmacy Purchasing Professional do not receive any formal training.

  • Materials Management/Supply Chain Management Department and Pharmacy address increasing pharmaceutical cost.

  • GS1 and GLN

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Healthcare supply chain
Healthcare Supply Chain Professionals on Pharmacy Finances

“Despite well-documented evidence of significant competitive advantage and cost reduction resulting from supply chain management practices, the healthcare industry has been extremely slow to embrace these practices. Barriers include… and limited education on supply chain.”

Source: Journal of Supply Chain Management, February 2005

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Purchasing impact to the bottom line
Purchasing Impact to the Bottom Line Professionals on Pharmacy Finances

  • Example: Average, private sector, not-for-profit hospital with margins <1%

  • Objective: Improve bottom line by $500K

  • Options:

    • Reduce supply chain expense by $500K

    • Increase revenue by $50 million

Source: HFM Magazine, 2008

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Survey
Survey Professionals on Pharmacy Finances

  • Overview

    • Participants and Methodology

  • Who is the Pharmacy Purchasing Professional?

    • Demographics

  • Training

  • Supply Chain Management

  • Operations

  • Finances

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Demographics age
Demographics - Age Professionals on Pharmacy Finances

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Demographics gender
Demographics - Gender Professionals on Pharmacy Finances

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Demographics education
Demographics - Education Professionals on Pharmacy Finances

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Demographics licensed
Demographics - Licensed Professionals on Pharmacy Finances

*Consultants, Non-Licensed Technician, Non-Pharmacy Staff

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Training certification
Training - Certification Professionals on Pharmacy Finances

*Master in Pharmacy Administration

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Training formal
Training - Formal Professionals on Pharmacy Finances

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Experience position held immediately before becoming a pharmacy purchasing professional
Experience – Position Held Immediately Before Becoming A Pharmacy Purchasing Professional

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Experience years before becoming a pharmacy purchasing professional
Experience – Years Before Becoming A Pharmacy Purchasing Professional

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Experience years as a pharmacy purchasing professional
Experience – Years As A Pharmacy Purchasing Professional Professional

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Facility size
Facility - Size Professional

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Facility type
Facility - Type Professional

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Supply chain management wholesaler
Supply Chain Management - Wholesaler Professional

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Supply chain management gpo
Supply Chain Management - GPO Professional

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Supply chain management inventory replenishment
Supply Chain Management – Inventory Replenishment Professional

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Supply chain management inventory buffer safety stock
Supply Chain Management – Inventory Buffer/Safety Stock Professional

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Supply chain management inventory reorder points and quantities
Supply Chain Management – Inventory Reorder Points and Quantities

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Supply chain management inventory consignment
Supply Chain Management – Inventory Consignment Quantities

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Supply chain management technology automated low united of measure
Supply Chain Management – Technology Automated Low United of Measure

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Supply chain management technology carousel
Supply Chain Management – Technology Carousel of Measure

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Operations routinely meeting with the pharmacy director to review purchasing
Operations - Routinely Meeting with the Pharmacy Director to Review Purchasing

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Operations attend management operational review or similar meetings
Operations – Attend Management Operational Review or Similar Meetings

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Operations dual report
Operations – Dual Report Similar Meetings

*Pharmacy Manager - Operational and Clinical, System Coordinator, Business Operations Manager, Sr. Accountant, COO, SCM

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Supply chain management organization
Supply Chain Management Organization Similar Meetings

Contract Management

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Pharmacy supply chain management model 3 dual report
Pharmacy Supply Chain Management Model 3 – Dual Report Report

Director of Supply Chain

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Supply chain management reports type
Supply Chain Management – Reports Type Report

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Sample pharmacy purchasing report
Sample Pharmacy Purchasing Report Report

  • Dashboard

    • Compliance, Penetration, Coverage

  • Contracts

    • $ Increased or decreased

    • XX contracts changed in XX period with XX change in XX period

  • Spend Analysis

    • Top Therapeutic Categories

    • Unbudgeted Drug Expense

      • Factor

  • Expense – Reduction Efforts

    • IV to Po: xx savings

    • Projects

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Supply chain management report benchmarking
Supply Chain Management – Report Benchmarking Report

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Finance ftes
Finance - FTEs Report

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Finances contract compliance rate
Finances – Contract Compliance Rate Report

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Finances factors considered when calculating the switch between two equal products
Finances – Factors Considered When Calculating The Switch Between Two Equal Products

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Finances inventory is performed
Finances – Inventory is Performed Between Two Equal Products

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Finances inventory turn rate
Finances – Inventory Turn Rate Between Two Equal Products

  • Mean – 12.426

  • Median – 12

  • Mode – 11

  • Standard Deviation – 4.165

  • Minimum – 5

  • Maximum – 21

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From non trained to trained
From Non-Trained to Trained Between Two Equal Products

  • Find a Mentor

  • Network

  • Educate Yourself

  • Make an Impact and Promote the Results

  • Know Your Skill Set

Source: Materials Management in Health Care, 2009

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Training purchasing assessment of skills for success pass
Training – Purchasing Assessment of Skills for Success (PASS)

  • The PASS program measures purchasing professional’s proficiency in seven key skill dimensions:

    • Purchasing Fundamentals

    • Analysis & Spreadsheets

    • Contract Law

    • Project Management

    • Purchasing Best Practices

    • Sourcing

    • Negotiation

      *Next Level Purchasing Benchmarking Program; 475 purchasing professionals from 46 companies

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Training skills and knowledge
Training – Skills and Knowledge (PASS)

The Center for Advance Procurement and Supply (CAPS) Research of Arizona State University summarized the top skills and knowledge area required for tomorrow.

  • Skills

    • Ethics, interpersonal communication, negotiation skills, project and team orientations, and strategic thinking.

  • Knowledge

    • Supplier relationship management, total cost analysis, purchasing strategies and plans, and supplier analysis.

Source: 92nd Annual ISM Conference, May 2007

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Training apics the association for operation management supply chain competency model
Training – APICS – The Association for Operation Management: Supply Chain Competency Model

  • Foundational

    • Personal Effectiveness

    • Academic

    • Workplace and Leadership

  • Profession-Related

    • Operations Management Technical

    • Supply Chain Manager Knowledge Areas

    • Supply Chain Manager Technical

  • Occupation-Related

    • Supply Chain Manager Specific Requirments

Source: APICS Future Leaders, 2009

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Training pharmacy black hole
Training – Pharmacy “Black Hole” Management: Supply Chain Competency Model

  • Failure to Supply

  • Expired Products

  • Recalls

  • Borrowing and Loans

  • Shortages – Secondary Market

  • Freight

  • X%net15 – Payment Terms

  • Waste

  • Reimbursement

  • Shrinkage

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Resources industry tools
Resources – Industry Tools Management: Supply Chain Competency Model

  • GPO

    • Broadlane

      • Broadlane University

      • Medication Use Management

    • Premier

      • 2010 Breakthroughs Conference & Exhibitions

  • Manufacture

    • Baxter

      • Pharmacy Advisor

    • Cubist

      • Economics in Infection Management/LOS

      • Access Manager

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Resources industry tools1
Resources – Industry Tools Management: Supply Chain Competency Model

  • Wholesaler

    • Cardinal

      • Inventory Management Best Practices Reference Guide, Version 1, 2008

      • Case Studies

    • McKesson

      • Healthcare Supply Chain Management And The Internet

      • Operationalizing The Event-Driven Supply Chain

      • Supply Management Online

      • Pharmacy Optimization Consulting

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Resources suggested readings
Resources – Suggested Readings Management: Supply Chain Competency Model

  • ASHP Guidelines on Medication Cost Management Strategies for Hospitals and Health Systems. Am J Health-Syst Pharm. 2008; 65:1368-84.

  • ASHP Current Status of Medicines Procurement. Am J Health-Syst Pharm. 2009; 66: 5: Supplement 3 s20-s28.

  • Brown, Thomas.(2010, August). Introduction to Health-System and Hospital Pharmacy Practice

  • Dominick, Charles.(2010, January). Certification Update: The Cost and Benefits of Getting Certified

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Resources suggested readings1
Resources – Suggested Readings Management: Supply Chain Competency Model

  • Goos, Kevin. (2008, March). Identifying Cost Savings Opportunities

  • McKone-Sweet, Kathleen. (2005, February). The Ailing Healthcare Supply Chain: A Prescription for Change

  • Merrifield, Ric. (2009). Rethink

  • Middleton, Diana. (2010, April). Exam Time: More Firms Are Requiring Test-Taking

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Resources suggested readings2
Resources – Suggested Readings Management: Supply Chain Competency Model

  • Nutescu, Edith. Basic Terminology in Obtaining Reimbursement for Pharmacists’ Cognitive Services. Am J Health-Syst Pharm. 2007; 64:186-92

  • Puckett, William. (2008, November). Recruiting a Manager for Financial Activities in Pharmacy

  • Wilson, Andrew. (2009). Financial Management for Health-System Pharmacist

  • World Health Organization. (1999). Operational Principles for Good Pharmaceutical Procurement

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Resources publications
Resources - Publications Management: Supply Chain Competency Model

  • American Journal of Health-System Pharmacy

  • Healthcare Financial Management

  • Inside Supply Management

  • Journal of Supply Chain Management

  • Materials Management in Health Care

  • Pharmaceutical Executive

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Resources publications1
Resources - Publications Management: Supply Chain Competency Model

  • Pharmacy Purchasing & Products

  • Pharmacy Purchasing Outlook

  • PM Network

  • Supply Chain

  • Supply & Demand Chain Executive

  • The Journal of Healthcare Contracting

  • The Journal of Pharmacy Technology

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Resources websites
Resources - Websites Management: Supply Chain Competency Model

  • www.ahrmm.org

  • www.apics.org

  • www.ashp.org

  • www.asq.org

  • www.capsresearch.org

  • www.gs1us.org

  • www.ism.ws

  • www.ncmahq.org

  • www.pharmacyadvisor.com

  • www.pharmacypurchasing.com

  • www.pmi.org

  • www.theiiba.org

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Summary
Summary Management: Supply Chain Competency Model

  • Patient Safety > Cost Savings

  • Facilities should have a trained purchasing professional dedicated to the pharmacy purchasing process.

  • Continuous Education, Training, and Certification

  • Additional Pharmacy Purchasing Professional Specific Research to Follow

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? Management: Supply Chain Competency Model

Do You Have Any Questions?

?

?

Email: Rponder@ejgh.org

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Thank You! Management: Supply Chain Competency Model


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