Large Integrated Health Delivery Network capitalizes on opportunities to run its pharmacy organization as a “business within a business”

Challenge/Goals

Transform the pharmacy organization into a well-run business. Find funding solutions to build and expand new pharmacy services that will generate revenue, improve patient care

Process

A top Integrated Health Delivery Network was looking to improve the overall management of its pharmacy services to improve financial performance while positively impacting patient care. Visante’s James Jorgenson, a former Chief Pharmacy Officer in several large hospital networks, was engaged to assess the IHDN’s existing pharmacy operations and provide a strategic plan to turn it into a “business within a business.”

Jorgenson and his colleagues at Visante developed a strategic approach to create significantly expanded pharmacy services that would be run as a financially strong business with enhanced patient care opportunities. The plan included:

• Retail and specialty pharmacy programs
• System formulary and drug utilization management
• Enhanced clinical pharmacy services
• Linking inpatient and outpatient care

To fund the expanded services initiative, Jorgenson developed an innovative financial and operational model which included creating an external partner relationship as an at-risk financial strategy.

Results

Visante’s approach brought extraordinary results to the IHDN pharmacy organization, from both patient care and financial perspectives. The IHDN now runs pharmacy as a business and continues to improve its operations as it continues to build upon this model.

15 -17% Reduced readmissions in target population

12% Increased patient satisfaction

$34M net operating margin gain in 36 months