Disclosures. Business Planning: Making Sure Enhanced Clinical Services are Balanced with Enhanced Revenue. Carlie Traylor, PharmD. Tripp Logan, PharmD
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1 Business Planning: Making Sure Enhanced Clinical Services are Balanced with Enhanced Revenue Tripp Logan, PharmD Senior Quality Consultant- MedHere Today Vice-President Logan & Seiler, Inc. (L&S Pharmacy, Medical Arts Pharmacy, New Madrid Pharmacy) Carlie Traylor, PharmD Director of Clinical Services- Chancy Drugs Disclosures Tripp Logan, PharmD is a Senior Quality Consultant / Partner at MedHere Today Consulting and a Clinical Pharmacist / Vice President, Logan & Seiler, Inc. The conflict of interest has been resolved by peer review of the slide content. Carlie Traylor, PharmD is the Director of Clinical Services at Chancy Drugs. The conflict of interest has been resolved by peer review of the slide content. 1
2 Learning Objectives Discuss the investments necessary to expand clinical services in your pharmacy Evaluate the market opportunities and assess how to balance investment with income Estimate the services that will be necessary to achieve balanced growth What should you ask before starting a clinical service? Find a partner and take 5 minutes to brainstorm questions you should answer before starting a new clinical service at your pharmacy. 2
3 Enhanced Services Must Begin with a Business Plan How much time will this service take to implement? Can I start small and scale? What is my target market? What will this cost in labor? What will this cost to implement? Will this service also provide advertising? What is the short term & long term program budget? Enhanced Services Must Begin with a Business Plan There is a difference between How much time will this service take to implement? Can I start small and scale? What is my target market? What will this cost in labor? & What PROFITABLE will this cost to implement? Will this service also provide advertising? What is the short term & long term program budget? REIMBURSABLE 3
4 Offer Services That Are Profitable and/or Marketable Profitable Marketable Adherence monitoring program with packaging Chronic disease management Transition of care with hospital Care coordination with mental health provider Immunizations Medication Therapy Management Clinical services (blood pressure, blood glucose) Enhanced Service Litmus Test What Makes A Successful Program? 4
5 Successful Program Good for Prescriber Good for Employers Good for Third Parties Good for Pharmacy Staff Good for Pharmacy Good for Patients Ask yourself: Is this enhanced service? Good for my patients? Revenue producing & profitable? Good for my pharmacy s image? Something my staff will buy in to? Is this sustainable? If the answer is NO, that s OK. Don t force it. 5
6 Remember You don t have to do everything, JUST DO WHAT YOU DO WELL! Partners are looking for enhanced service providers, not ALL service providers Maximize use of staff, don t overload the pharmacist Train staff to coordinate refills Train staff to contact patients Train staff to sell expanded services Train staff to prep pharmacist for patient care Doesn t have to be technicians, clerks & other staff can help too! 6
7 Group Activity: Team up with 3-4 other attendees. Using the scenario you were given at the beginning of the presentation, take 10 minutes to discuss with your group if you would invest in the new clinical service or not. Enhanced Services Can: Increase Patients & Volume Target high volume patients Target high volume providers Target high margin payers Target local providers Advertise why you are different Sell your expanded patient care services as going the extra mile for their patients 7
8 How Do I Know Who To Target? Enhanced Services Calculator Adherence Monitoring * Number of patients enrolled in program Additional Rxs per patient annually 2,900 Increase in ADDITIONAL program driven Rx volume *Armstrong T., Impact of the MedHere Today Program on Persistence and Adherence, A Descriptive Report; Pfizer, May
9 Enhanced Services Calculator Inventory & Cash Flow 20 $500 # of Patients Filling 1 Rx per month of $$$$ medication Cost of each Rx of $$$$ medication $10,000 Cash flow savings for pro-active medication management of these 20 patients Enhanced Services Calculator Inventory & Cash Flow 20 $10,000/mo $500 = $120,000/year $10,000 # of Patients That s a Pharmacist Salary!!!! Filling 1 Rx per month of $$$$ medication Cost of each Rx of $$$$ medication Cash flow savings for pro-active medication management of these 20 patients 9
10 Enhanced Services Can: Increase Efficiency & Communication Manage inventory with just in time fills Push high volume patient filling to down time Create a predictable pharmacy work environment Create free time for MTM, immunizations, etc. Create free time to coordinate care with providers Create free time to counsel patients and caregivers Key Investment opportunities in Enhanced Services: Trust in your pharmacy staff, they can do it Create an environment of efficiency Strategic marketing to potential partners What you believe in and what fits your model Invest in patient care management tools that fit your practice 10
11 Name some clinical services that you provide (or want to provide) that increase revenue: Enhanced Services to Consider: Services that impact Quality Measures Services that result in additional MTM opportunities Services that impact Mental & Behavioral Health Services that include Transition of Care Compliance packaging with strategic targets Wellness programs 340B programs 11
12 Who s looking for Enhanced Pharmacy Services? Health Plans Family Practice Providers Hospitals & Health Systems Federal and State Programs Chronically Ill Patients & Caregivers Home Health Workers Mental Health Providers Pharmacy Benefit Managers I m SOLD Now What? Start with a Business Plan 12
13 Know Who To Target 13
14 Don t Be Afraid To #FAIL 14
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