Impact of trained vs non trained pharmacy purchasing professionals on pharmacy finances
This presentation is the property of its rightful owner.
Sponsored Links
1 / 59

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


  • 87 Views
  • Uploaded on
  • Presentation posted in: General

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.

Download Presentation

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

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


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

Introduction

2

3

4

Agenda

Current Survey

Training

Resources

14th Annual NPPA Conference


Current environment

Current Environment

  • 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

14th Annual NPPA Conference


Healthcare supply chain

Healthcare Supply Chain

“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

14th Annual NPPA Conference


Purchasing impact to the bottom line

Purchasing Impact to the Bottom Line

  • 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

14th Annual NPPA Conference


Survey

Survey

  • Overview

    • Participants and Methodology

  • Who is the Pharmacy Purchasing Professional?

    • Demographics

  • Training

  • Supply Chain Management

  • Operations

  • Finances

14th Annual NPPA Conference


Demographics age

Demographics - Age

14th Annual NPPA Conference


Demographics gender

Demographics - Gender

14th Annual NPPA Conference


Demographics education

Demographics - Education

14th Annual NPPA Conference


Demographics licensed

Demographics - Licensed

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

14th Annual NPPA Conference


Training certification

Training - Certification

*Master in Pharmacy Administration

14th Annual NPPA Conference


Training formal

Training - Formal

14th Annual NPPA Conference


Experience position held immediately before becoming a pharmacy purchasing professional

Experience – Position Held Immediately Before Becoming A Pharmacy Purchasing Professional

14th Annual NPPA Conference


Experience years before becoming a pharmacy purchasing professional

Experience – Years Before Becoming A Pharmacy Purchasing Professional

14th Annual NPPA Conference


Experience years as a pharmacy purchasing professional

Experience – Years As A Pharmacy Purchasing Professional

14th Annual NPPA Conference


Facility size

Facility - Size

14th Annual NPPA Conference


Facility type

Facility - Type

14th Annual NPPA Conference


Supply chain management wholesaler

Supply Chain Management - Wholesaler

14th Annual NPPA Conference


Supply chain management gpo

Supply Chain Management - GPO

14th Annual NPPA Conference


Supply chain management inventory replenishment

Supply Chain Management – Inventory Replenishment

14th Annual NPPA Conference


Supply chain management inventory buffer safety stock

Supply Chain Management – Inventory Buffer/Safety Stock

14th Annual NPPA Conference


Supply chain management inventory reorder points and quantities

Supply Chain Management – Inventory Reorder Points and Quantities

14th Annual NPPA Conference


Supply chain management inventory consignment

Supply Chain Management – Inventory Consignment

14th Annual NPPA Conference


Supply chain management technology automated low united of measure

Supply Chain Management – Technology Automated Low United of Measure

14th Annual NPPA Conference


Supply chain management technology carousel

Supply Chain Management – Technology Carousel

14th Annual NPPA Conference


Operations routinely meeting with the pharmacy director to review purchasing

Operations - Routinely Meeting with the Pharmacy Director to Review Purchasing

14th Annual NPPA Conference


Operations routinely attend and participate in manager meetings

Operations – Routinely Attend and Participate in Manager Meetings

14th Annual NPPA Conference


Operations routinely report out at department meetings

Operations – Routinely Report-Out at Department Meetings

14th Annual NPPA Conference


Operations attend management operational review or similar meetings

Operations – Attend Management Operational Review or Similar Meetings

14th Annual NPPA Conference


Operations dual report

Operations – Dual Report

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

14th Annual NPPA Conference


Supply chain management organization

Supply Chain Management Organization

Contract Management

14th Annual NPPA Conference


Pharmacy supply chain management model 1 traditional report

Pharmacy Supply Chain Management Model 1 – Traditional Report

14th Annual NPPA Conference


Pharmacy supply chain management model 2 direct report

Pharmacy Supply Chain Management Model 2 – Direct Report

14th Annual NPPA Conference


Pharmacy supply chain management model 3 dual report

Pharmacy Supply Chain Management Model 3 – Dual Report

Director of Supply Chain

14th Annual NPPA Conference


Supply chain management reports type

Supply Chain Management – Reports Type

14th Annual NPPA Conference


Sample pharmacy purchasing report

Sample Pharmacy Purchasing 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

14th Annual NPPA Conference


Supply chain management report benchmarking

Supply Chain Management – Report Benchmarking

14th Annual NPPA Conference


Finance ftes

Finance - FTEs

14th Annual NPPA Conference


Finances contract compliance rate

Finances – Contract Compliance Rate

14th Annual NPPA Conference


Finances variance in inventory value from previous year

Finances – Variance in Inventory Value from Previous Year

14th Annual NPPA Conference


Finances factors considered when calculating the switch between two equal products

Finances – Factors Considered When Calculating The Switch Between Two Equal Products

14th Annual NPPA Conference


Finances inventory is performed

Finances – Inventory is Performed

14th Annual NPPA Conference


Finances inventory turn rate

Finances – Inventory Turn Rate

  • Mean – 12.426

  • Median – 12

  • Mode – 11

  • Standard Deviation – 4.165

  • Minimum – 5

  • Maximum – 21

14th Annual NPPA Conference


From non trained to trained

From Non-Trained to Trained

  • Find a Mentor

  • Network

  • Educate Yourself

  • Make an Impact and Promote the Results

  • Know Your Skill Set

Source: Materials Management in Health Care, 2009

14th Annual NPPA Conference


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

14th Annual NPPA Conference


Training skills and knowledge

Training – Skills and Knowledge

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

14th Annual NPPA Conference


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

14th Annual NPPA Conference


Training pharmacy black hole

Training – Pharmacy “Black Hole”

  • Failure to Supply

  • Expired Products

  • Recalls

  • Borrowing and Loans

  • Shortages – Secondary Market

  • Freight

  • X%net15 – Payment Terms

  • Waste

  • Reimbursement

  • Shrinkage

14th Annual NPPA Conference


Resources industry tools

Resources – Industry Tools

  • GPO

    • Broadlane

      • Broadlane University

      • Medication Use Management

    • Premier

      • 2010 Breakthroughs Conference & Exhibitions

  • Manufacture

    • Baxter

      • Pharmacy Advisor

    • Cubist

      • Economics in Infection Management/LOS

      • Access Manager

14th Annual NPPA Conference


Resources industry tools1

Resources – Industry Tools

  • 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

14th Annual NPPA Conference


Resources suggested readings

Resources – Suggested Readings

  • 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

14th Annual NPPA Conference


Resources suggested readings1

Resources – Suggested Readings

  • 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

14th Annual NPPA Conference


Resources suggested readings2

Resources – Suggested Readings

  • 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

14th Annual NPPA Conference


Resources publications

Resources- Publications

  • American Journal of Health-System Pharmacy

  • Healthcare Financial Management

  • Inside Supply Management

  • Journal of Supply Chain Management

  • Materials Management in Health Care

  • Pharmaceutical Executive

14th Annual NPPA Conference


Resources publications1

Resources- Publications

  • Pharmacy Purchasing & Products

  • Pharmacy Purchasing Outlook

  • PM Network

  • Supply Chain

  • Supply & Demand Chain Executive

  • The Journal of Healthcare Contracting

  • The Journal of Pharmacy Technology

14th Annual NPPA Conference


Resources websites

Resources - Websites

  • 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

14th Annual NPPA Conference


Summary

Summary

  • 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

14th Annual NPPA Conference


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

?

Do You Have Any Questions?

?

?

Email: [email protected]

14th Annual NPPA Conference


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

Thank You!


  • Login