DUBLIN, Ohio, March 19, 2014 /PRNewswire/ -- The first step in transforming the hospital pharmacy into a strategic asset is typically one of the most overlooked; finding opportunities for new, meaningful growth. Achieving growth not only increases profitability, but also turns the pharmacy into an integral part of the business, rather than a necessary cost center that manages expenses.
In part two of a blog series addressing how to leverage a hospital pharmacy as a strategic asset, Mary Baxter, MBA, RPh., vice president and national practice leader for Cardinal Health's Innovation Delivery Solutions business, stresses that pharmacies must remain focused on constantly identifying opportunities for meaningful growth through expanded services, better reimbursement capture and smarter expense management.
"Finding growth is a classic win-win business strategy," says Baxter. "Customers, in this case patients, reward a hospital when it delivers new and valued services. Hospital systems benefit financially and strategically by unlocking hidden value from an often times undervalued asset - the hospital pharmacy."
For hospital pharmacies interested in finding meaningful growth opportunities, Baxter suggests implementing tactics including:
- Establish or expand an outpatient pharmacy: Leverage outpatient pharmacies to increase the likelihood that patients understand and adhere to their medications. In turn, help reduce readmission rates.
- Capture all available reimbursement: The federal government, especially under the Affordable Care Act, increasingly provides financial incentives for improving efficiency and care quality. Don't let reimbursement revenue slip away because the opportunity is hidden. A hospital can capture extra reimbursement dollars by helping its hospital improve patient care
- Consider the pharmacy's inventory as an untapped asset: Look to outside partners to fully own and manage the pharmacy inventory. In doing so, hospitals can improve their cash position, and even help finance other key hospital initiatives.
Read Baxter's full blog post on this topic at Essential Insights. Her next post in this series will address the second of Cardinal Health's "Four F Framework" for hospital pharmacies: fixing inefficiencies. To learn more about the "4 F Framework" and review real-world examples of hospital pharmacies implementing these concepts, follow Baxter's blog series Leveraging the Hospital Pharmacy as a Strategic Asset on Essential Insights.
Cardinal Health's Innovative Delivery Solutions business helps providers transform hospital pharmacies into a strategic asset – delivering value that supports the patient throughout the continuum of care. The team's mission is to provide exceptional clinical, supply chain, analytics and operational expertise to improve patient access, increase quality of care and reduce overall costs. From supply chain management solutions to expert consultative services, Cardinal Health Innovative Delivery Solutions provides a highly comprehensive, universal solution for hospital pharmacies.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $101 billion healthcare services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products to more than 100,000 locations each day. The company is also a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company supports the growing diagnostic industry by supplying medical products to clinical laboratories and operating the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #19 on the Fortune 500, Cardinal Health employs more than 33,000 people worldwide. More information about the company may be found at cardinalhealth.com and @CardinalHealth on Twitter.
SOURCE Cardinal Health