Situation
Escalating drug costs pose a significant challenge to healthcare institutions, impacting both the overall health system and patient care. In pharmacies, the pursuit of drug savings becomes crucial when trying to alleviate financial strain and enhance patient well-being.
One effective strategy to find savings is opting for generic medications over brand-name equivalents. Generic drugs offer similar therapeutic benefits at a fraction of the cost, presenting a viable solution to curb expenses without compromising the quality of care.
A large tribal system in Oklahoma, serving 400,000 patients across twelve clinical sites plus mail order deliveries, was considerably impacted by rising drug costs. Added to these financial burdens were challenges such as:
• The lack of clear protocols or centralized inventory oversight, allowing physicians
and pharmacists, working independently across multiple clinics, to choose which
medications and agents to purchase.
• Losing money by purchasing brand-name medications instead of cost-effective
generic options.
• The complexity of managing multiple agents in combination with other medications and
various strains.
Solution
To address these challenges, the health system engaged CompleteRx to identify opportunities for clinical savings as part of an overarching inventory management strategy. Recognizing diabetes as a prevalent health issue in their patient population, a CompleteRx analyst targeted the diabetic drug class for cost-saving initiatives. The implementation process involved a system-wide approach, incorporating memos, alerts, weekly reports, and a clinical initiative tracking tool to ensure the adoption of generic drugs.
CompleteRx initiated an educational campaign, informing staff at each clinical site about the transition to generic versions of diabetic drugs.
The system was updated with alerts to prompt staff to choose generic options, and weekly reports from distributors identified locations still ordering brand-name medications. A clinical initiative tracking tool was also introduced to monitor trends and ensure compliance with the generic drug purchasing.
Despite the challenges posed by multiple agents and this drug’s use in combination with other medications, CompleteRx developed and educated the health system’s physicians and pharmacists on a new protocol to address the varying strains of drugs available and how to combine each one, helping to streamline the transition to the generic medication.
Results
The implementation of these processes yielded significant results, leading to $3 million in savings for the diabetic drug class.
In 2022, the health system spent approximately $600–$700,000 in just one class of diabetic agents. By the end of the conversion they were only spending on the recommended generic agent in the class, which was a fraction of that spend. This freed up a substantial amount of funds, allowing the health system to allocate their extra resources more strategically.
If you would like to discuss your facility’s significant savings and profitability potential, please contact Sheila Campbell, Business Development Coordinator.
713.355.1196 | sales@completerx.com
The streamlined medication combinations not only reduced costs but also enhanced patient compliance, particularly in outpatient ambulatory settings, by simplifying medication regimens.
The success of this initiative demonstrates the potential impact of proactive inventory management and the adoption of generic alternatives in health system pharmacies, contributing to both financial sustainability and improved patient outcomes.
