4 Key Strategies To Improve Efficiency In Health System Pharmacy

A transformative shift is underway in health system pharmacy due to growing financial challenges and pervasive staffing shortages. Health system pharmacies are looking for proactive ways to be more operationally efficient and nimble and to create stronger financial performance for the organization.

Repeatedly, high-performing pharmacy organizations achieve more robust efficiency in three ways: standardizing services, consolidating services, and implementing and optimizing pharmacy technology. Innovative pharmacy leaders consistently embrace these fundamental operational practices to stay at the forefront of operational efficiency. Forward-thinking organizations also employ a fourth key strategy: optimizing internal benchmarking performance. This strategy can provide valuable insights to enhance pharmacy operations and achieve greater efficiency.

A four-prong approach to achieve improved efficiency

Persistent financial stressors place a relentless strain on available resources, be it capital or labor. As resource stewards, pharmacy leaders must ensure optimal utilization to demonstrate maximum value. Financial challenges and workforce pressures are here to stay, so it’s imperative to adopt performance-based approaches that improve efficiency, bolster the bottom line and support the workforce.

These four excellent strategies are crucial for pharmacy organizations seeking heightened efficiency.

1. Standardizing services streamlines operations, reducing unnecessary variations and enhancing the predictability and quality of care. This move minimizes waste and allows for a more efficient allocation of labor resources.
2. Centralizing services presents an opportunity to consolidate services, minimizing redundant efforts across multiple sites. This strategy curtails waste and reduces resource requirements, optimizing available capital and labor and decanting valuable space in the hospital.
3. Embracing and optimizing new technology can revolutionize operational effectiveness. From advanced medication preparation and dispensing systems to innovative inventory management tools, technology in pharmacy can significantly enhance efficiency, augmenting the capacity of our workforce while simultaneously reducing costs.
4. Benchmarking using internally validated metrics can significantly improve operational efficiency and enhance transparency. A proactive benchmarking approach includes an analytics program to track key operating metrics – established in a standardized, consistent manner with relevant stakeholders. Creating a framework to develop targets while regularly reviewing metrics is also essential. Utilizing internal benchmarking data to drive efficiency over time against oneself allows organizations to change the processes and behaviors necessary to improve overall performance.

Centralized Services Centers improve operational efficiency

Implementing Centralized Service Centers (CSCs) is a crucial part of our recommended approach to achieve high performance while driving efficiency. CSCs provide a platform to centralize and standardize services, effectively driving down labor costs and minimizing waste across decentralized sites within the healthcare system. Service consolidation optimizes resource utilization and allows a more concerted focus on quality and consistency in care delivery.

The CSC facility also provides the organization with adequate space to grow entrepreneurial strategic pharmacy services that drive new revenue into the system (e.g., specialty and mail order pharmacies, ambulatory infusion programs) and to optimize pharmaceutical supply chain operations at a lower cost than within traditional healthcare spaces. The centralization of production activities creates an environment where sophisticated technologies and automation systems can be implemented to improve operational efficiency, quality, and financial performance. A robust data analytics program provides actionable information to identify opportunities for CSC growth and enhanced system efficiency. Ongoing benchmarking continues to measure the facility’s success while providing stakeholders with valuable information to drive further operational and financial improvements.

In conclusion, the imperative for enhanced operational efficiency in the healthcare system cannot be overstated. By adhering to principles of standardization, centralization, and technological advancement, organizations not only fortify their financial standing but also ensure the sustainability and effectiveness of our workforce. Developing a strong internal pharmacy analytics and benchmarking program further strengthens the organization. Through these concerted efforts, we pave the way for a healthcare system that is not only financially resilient but also supports its workforce and excels in delivering quality care.

To learn more, read our full summary of the top 10 issues facing health system pharmacy in 2024.

Here at Visante, we help health systems accelerate strong financial and operational performance through pharmacy. Our team’s deep expertise and innovative approach can help you optimize your fully integrated health system pharmacy program. Contact us to learn more about how we can meet your unique needs. Email solutions@visante.com or call (866) 388-7583 to speak to one of our team members.