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Communication is the Key Pharmacy Purchasing Pearls. Marvin Finnefrock, PharmD Steven L. Gratch, Pharm. B.Sc., R.Ph. Diane Daskey Joanie MacIntosh, CPhT. Learning Objectives (for Technicians & Pharmacists). At the end of this activity, the participant will be able to:

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communication is the key pharmacy purchasing pearls

Communication is the KeyPharmacy Purchasing Pearls

Marvin Finnefrock, PharmD

Steven L. Gratch, Pharm. B.Sc., R.Ph.

Diane Daskey

Joanie MacIntosh, CPhT

learning objectives for technicians pharmacists
Learning Objectives (for Technicians & Pharmacists)
  • At the end of this activity, the participant will be able to:
    • Describe the role of the pharmacy buyer in preparing for P&T meetings.
    • Outline the communication relationships between manufacturer, wholesaler, GPO, pharmacy buyer, pharmacy staff, clinical pharmacists, and pharmacy director.
    • Differentiate circumstances and situations that may be managed by the pharmacy buyer versus clinical pharmacists versus pharmacy management.
    • Describe the “glue” required for effective communication within and outside of the pharmacy department.
buyer support for the clinical pharmacist
Buyer Support for the Clinical Pharmacist
  • The clinical specialist should work very closely with the Pharmacy buyer/purchasing agent
  • Tell them what they do not know
  • Think outside the package
  • Know the formulary and empower yourself
group purchasing organization
Group Purchasing Organization
  • Contract Compliance
  • Business Class
    • DEA Status
    • “Not for” or “For” profit status
group purchasing organization7
Group Purchasing Organization
  • Robinson Patman Act
    • Sets rules for discount pricings
      • Business Class (DEA license status)
      • Volume Discounts
      • Formulary restrictions
    • Litmus test = “Own Use”
      • Patients register to the facility
      • Employees
    • Profit Status – exemptions for “Not for Profit”
      • Limited dispensing – inpatient ED and hospital outpatients
wholesale distributors
Wholesale Distributors
  • Prescription Drug Marketing Act of 1987
    • Amended in 1992 and 2006
    • Regulates resale of drugs by hospitals
    • States must license Wholesalers
    • FDA 5% rules annual sales to other pharmacies without Wholesale License
      • States may have a more stringent regulations
    • Drug Pedigree
  • Resale to hospital own outpatient pharmacy
  • Resale to clinics and physician offices
pharmaceutical sales representatives
Pharmaceutical Sales Representatives
  • An important role in providing medication information they are guest of the hospital and expected to follow hospital policies
  • HIPPA, PHRMA Accepted Rules of Conduct and Security
  • Verify contact information including representative’s district/regional manager
  • Sign Acknowledgement of understanding hospital rules
pharmaceutical sales representatives10
Pharmaceutical Sales Representatives
  • Set the expectations for service:
    • Educational programs
    • Information displays
  • Contact with Physician and Staff
    • Location restrictions
    • Discussion of P&T activities
  • Penalties for inappropriate activities
preparation to bring a new drug onto formulary
Preparation to bring a new drug onto formulary
  • Manufacturer
    • Contracts/LOP’s/LOC’s
    • Reimbursement/HCPCS codes
    • Storage and Handling
    • Shelf life
    • Patient Assistant Programs
    • Educational plan for Medical and Pharmacy staff
  • DOP or Clinical RPH
    • Therapeutic Indication
    • Where will item be stocked
    • Suspected Usage
    • Start up Min/Max levels
cost analysis
Cost Analysis
  • Cost Comparison to similar medications currently on formulary
  • Correct Contract tiers based on market share.
  • 340 pricing if eligible.
shortage report
Shortage Report
  • New Shortages
  • Ongoing Shortages
  • Permanent Outages
  • Resolved Shortages
    • Reason for Shortage
    • Expected Release Date
    • Product Management
    • Supply information
pharmacy staff
Pharmacy Staff
  • Ordering
    • Two way Communication
    • Shortages and Recalls
  • Shortages
    • Anticipated length
    • Allocation
    • Alternative item
  • Recalls
    • Anticipated length
pharmacy staff18
Pharmacy Staff
  • Formulary Management
    • Additions/Deletions
    • New CDM’s
  • Location of Product
    • Location, Location, Location!
medical staff
Medical Staff
  • Drug Shortages
    • Anticipated Length
    • Alternative Item
  • Recalls
    • Ancillary Departments
    • Clinics
    • Physician Offices
  • Newsletters
    • ISMP
    • Pharmacy Newsletter
      • Formulary Updates
pharmacy management team
Pharmacy Management Team

Pharmacy Buyer

Pharmacy Management Team

DOP

Budget

New Services

Clinical

New Initiatives

Technician Supervisor

Automation

Scheduling

  • Drug Shortages
  • Recalls
  • Contract Updates
  • Vendor Representative Update
    • New products
      • Pricing
      • Availability
  • Reports
    • Budget
patient
Patient
  • Drug Shortages
  • Recalls
  • Non-Formulary Items