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How Focused Initiatives Achieved More Than $18.9 Million in Cost Savings Over 15 Months

The Challenge

CPS was approached by the CEO of a large health system comprising over a dozen acute care hospitals. The CEO tasked CPS with analyzing their hospital pharmacy data with the goal of revealing as many opportunities for cost savings as possible.

CPS prioritized building relationships with hospital leaders and staff across multiple locations to gain an understanding of their current situation. They began by interviewing pharmacy team members to explore opportunities and risks while probing for potential cost savings and clinical process improvements across all sites.

Potential Barriers to Success

CPS teams started by addressing physician alignment, balance of competing priorities, and cultural resistance to change. By utilizing a consistent change management approach, the team identified the following opportunities:

  • Cost savings and utilization

  • Continued opioid program implementation

  • Systemization/standardization of drug formularies and policies/procedures

  • Maximizing purchasing power

  • Mitigating drug shortages

  • Further assessment of 340B contract pharmacy opportunities

Propriety CPS Tools Utilized

Various CPS tools were utilized to identify and implement Focused Initiatives of Cost Savings (FICSSM)

  • Controlled Substances

  • Sterile Compounding (USP <797> and <800>)

  • Formulary Management

  • Clinical Intervention

  • Opioid Stewardship

  • Regulatory and Compliance

  • Antimicrobial Stewardship

  • Staffing Demands

  • 340B

Summary of Results

CPS teams delivered the following results:

Financial

  • System integration and formulary alignment resulting in $18.9 million in savings through March 2021

  • Cancer Institute Biosimilar and Formulary Optimization resulting in $4.9 million in savings through March 2021

  • CPS recommended system-wide staffing adjustments resulting in $2.23 million in savings through March 2021

Quality

  • Survey readiness assessments completed at all 12 locations

  • Successful TJC surveys at two locations

  • Process improvements implemented in procedural areas

Clinical

  • Established one system formulary

Posted: Tuesday, August 24, 2021

Tags: Prisma