Pharmacy as a Driver of Health System Growth

Having a high-performing pharmacy is key to achieving your hospital's overall financial performance and to supporting patient safety and improved outcomes. It also can be a driver of health system growth, and the catalyst for sustaining long-lasting savings.

This article details how one health system embarked on a growth and expansion strategy that transformed it into the area’s largest employer with an extensive network of clinics, doctor offices, cancer care, home care and rehabilitation services. Cardinal Health has been a 35-year partner in that growth, ensuring that the pharmacy served as a change agent for the system’s strategy.

Today, the system’s pharmacy team focuses on three drivers for system-wide improvements: implementing savings year-over-year, leveraging system standardization to minimize complexity and monitor performance, and identifying new revenue opportunities. All three are necessary to create value; however, many cost-conscious hospitals hesitate to invest in revenue opportunities and miss out on accelerating their growth. This strategy is proven to drive rapid results. For this health system, example results include a $3 million reduction in operating expenses over three years, $3 million in clinical savings in one year, and over a $1 million impact in denial avoidance during one recent year.

Managing a hospital pharmacy requires operational excellence, continuous compliance with changing standards, effective clinical programs and more. However, limited resources, labor shortages and a rapidly changing industry prevent many from moving beyond basic pharmacy services. Pharmacy innovation is about finding the right resources and approach to achieve system goals.

To learn more about proven best practice programs, read the full article.