February 05, 2019
The average hospital today is operating at a margin of less than three percent. Whether above or below this average, most hospital executives are exploring unique sources of revenue and cost reductions, as well as methods to improve patient outcomes. An often-missing piece in this effort is consideration of the pharmacy department as a key component of an organization’s strategy. With the persistence of low hospital margins, the pharmacy is starting to be seen by some hospital executives as an alternative source to further reduce costs, increase hospital revenues and improve patient outcomes.
The pharmacy department has typically played a more transactional role in hospitals and health systems but with recent pharmaceutical breakthroughs, medication management is becoming even more of a critical driver of patient outcomes. The FDA has been approving more biologics and biosimilars than ever before, and with changes in FDA regulations of drug approvals, the rate of medication approvals per year will continue to rise. These medications are likely to improve patient outcomes, yet at the same time they could increase costs.
Significant cost savings, revenue generation and patient outcome improvement opportunities lie in the pharmacy department. However, when attempting to leverage the pharmacy and realize these opportunities, hospital executives often encounter obstacles. In this video we talk about how we view pharmacy as a strategy for your health system’s clinical and financial success.