Nov 13, 2018

New Data Shows Many Health System Pharmacies Considering Consolidated Distribution Models to Address Medication Management Challenges

Forty-eight percent of health system pharmacies are considering centralized distribution at a consolidated service center. 
 
Broomfield, Colo. – Hospital pharmacies face substantial pressure to shoulder cost-reduction measures while maintaining exceptional service levels. This pressure is compounded by a variety of operational issues, including rising drug costs, increased regulatory oversight and drug shortage management. 
 
To address these challenges, leadership at progressive health systems recognize a need to create “systemness” by streamlining processes, driving standardization and enhancing visibility across sites. One viable solution gaining momentum is the centralization of pharmacy operations within a consolidated service center (CSC). 
 
A market leader in medication supply chain management, Swisslog Healthcare embarked on a mission to better understand the adoption of consolidated distribution strategies for pharmacy operations. Working with Visante, Inc. in July of this year, Swisslog Healthcare surveyed pharmacy leaders from across the United States, receiving market feedback from 31 distinct health systems. 
 
The survey revealed 13 percent of respondents currently operate a CSC and 48 percent are actively considering developing a CSC to improve inventory management and streamline procurement.  
 
“At the heart of a consolidated service center is a commitment to minimizing unsubstantiated variation and leveraging economies of scale,” explains Beth Riggio, Director of Solutions Management, Pharmacy Automation, at Swisslog Healthcare. “The continued growth of integrated delivery networks is creating a greater need for control and coordination that can be achieved through centralizing supply chain and shared services.” 
 
One of the primary questions surrounding the decision to implement a CSC is determining what operations to centralize. The research revealed that centrally replenishing Automated Dispensing Cabinets (ADCs) on patient floors and sterile compounding are the operations most commonly implemented by pharmacy at existing Consolidated Service Centers. 
 
To support these activities, IDNs have invested in pharmacy automation, including high adoption of carousel or robotic storage, pharmacy analytics and inventory management software. However, to fully answer the question of what to centralize at a CSC, a thorough business case is required.
 
“Although the business case for building a CSC contains multiple variables, aggregating purchasing volumes and reducing inventory overhead are shown to be the largest contributors to cost savings,” reveals Riggio. “On average, pharmacies utilizing a CSC model saw a 23 percent inventory reduction as well as a 15 percent reduction in expired medications.” 
 
In addition to medication supply chain efficiency, a consolidated service center enables health systems to better serve their internal and external customers through consistent drug availability and reallocation of resources to patient-facing activities.  
 
For more information on the market adoption and financial impact of consolidated service centers, download the new, data-packed whitepaper at www.swisslog.com/cscrx.
 
Pharmacy professionals interested in learning more about consolidated pharmacy distribution are also encouraged to meet with a member of the Swisslog Healthcare team at the ASHP Midyear Clinical Meeting & Exposition December 3-6 in Anaheim, CA. To secure a VIP booth appointment, visit www.swisslog.com/ASHP18.

 

 
 
About Swisslog Healthcare  
 
Swisslog Healthcare is a leading supplier of solutions and services for material transport, medication management and supply chain management. Swisslog Healthcare has installed facility-wide transport and pharmacy automation systems in more than 3,000 hospitals worldwide. The company offers integrated solutions from a single source – from consulting to design, implementation to lifetime customer service. For more information, visit www.swisslog.com/healthcare.

 

Swisslog Healthcare is a member of the KUKA Group, a leading global supplier of intelligent automation solutions. For more information, visit  www.kuka.com.

 

 
Media Contact 
 
Beth Riggio
Director, Solutions Management-Pharmacy Automation
Email: media.healthcare.us@swisslog.com
Phone: 303-373-7952 
 
 

Market Buzz

Mar 22, 2019 Tutela Welcomes Octapharma Plasma
Mar 18, 2019 Verity Solutions Recognized as Category Leader for 340B Management Systems in 20...
Mar 07, 2019 Stormont Vail Health Partners with Omnicell to Enhance Medication Management Str...
Mar 06, 2019 Rebranding Focuses ALG Mission - Combining Our Best to Bring You Our Best
Mar 04, 2019 RXinsider Celebrates 20 Years, 1999 - 2019
Feb 18, 2019 QS/1® Offers Compliance Packaging Label Solution
Feb 15, 2019 QS/1 Partnership Offers Compliant Patient Communications
Feb 14, 2019 RXinsider is Proud to Welcome our Newest Partners!
Feb 12, 2019 Albertsons Companies Pharmacies Adopt TemperPack's ClimaCell™ Packaging
Feb 07, 2019 Fagron Launches New Brand Identity and Purpose
Feb 07, 2019 Medicine-On-Time has come together with Clinical Support Services, a leader in M...
Feb 04, 2019 Letco Med and Ananda Professional Partner to Bring CBD and Education to Compound...
Jan 30, 2019 Texas Children’s Hospital Expands Partnership with Omnicell
Jan 16, 2019 Helmer Scientific Launches the First Professional Medical-grade Refrigerators
Jan 15, 2019 The Compliance Team™ celebrates 25 years of accreditation transformation
Jan 11, 2019 CORE Higher Education Group partners with Pharmacists Mutual
Jan 10, 2019 SCA Pharma Awarded National Outsourced I.V. Admixture Services Agreement with Pr...
Jan 08, 2019 Tutela Welcomes the Center for Organ Recovery and Education
Dec 13, 2018 PharmaLink Launches Updated Website
Dec 11, 2018 Jorgenson Issues Annual List of Major Challenges Facing Hospital and Health Syst...
Nov 29, 2018 BD Expands Integrated Medication Management to Help Tackle Hospital Drug Diversi...
Nov 13, 2018 Akro-Mils 2019 Catalog
Nov 13, 2018 New Data Shows Many Health System Pharmacies Considering Consolidated Distributi...
Oct 17, 2018 Retail Management Solutions Celebrates 20 Years of Pharmacy POS Innovation
Oct 17, 2018 Hardy Diagnostics Releases a New Locking Lid Feature for all Contact Plates
Oct 15, 2018 Transaction Data Systems Partners with Community Pharmacies to Fight the Opioid ...
Oct 12, 2018 1st Patient-Centered Respiratory Home™ Accreditation Recipient Named
Oct 10, 2018 Augusta University Health Selects Omnicell’s Industry-Leading Medication Manag...
Oct 04, 2018 QS/1® Honors Pharmacists at NCPA
Oct 03, 2018 Innovation to Move to New Campus in New York’s Southern Tier to Accommodate St...

RXinsider Product Overview Videos