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

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...
Oct 03, 2018 Equashield and Max Care Medical to Distribute Leading Closed System Transfer Dev...
Oct 01, 2018 Global Needlefree Closed System Transfer Device (CSTD) Market 2018 by Manufactur...
Sep 23, 2018 Prudential Overall Supply Celebrates Dan Clark's 50th Employment Anniversary
Sep 19, 2018 RXQ Compounding Expanding in Albany
Sep 17, 2018 Middlesex Hospital Bolsters Pharmacy Safety and Compliance by Extending Wolters ...
Sep 14, 2018 Synergy Medical once again among Canada's Top 500 Companies
Sep 10, 2018 American Associated Pharmacies Taps FDS to Bring its Members a State-of-the-Art ...
Sep 10, 2018 Rees Scientific achieved ISO/IEC 17025:2017 Accreditation
Sep 06, 2018 Medical Packaging Inc. Named One of The Best Places to Work In New Jersey
Sep 06, 2018 Americorp Financial Launches New Brand, Website for Equipment Financing
Sep 04, 2018 Excelera® Specialty Pharmacy Network Announces Partnership with Smith & Nephew
Aug 30, 2018 Letco Medical, L.L.C. Announces Exclusive Partnership with Sweetgrass GxP Group,...
Aug 29, 2018 QS/1® Selected as Early Adopter in New CMS SCRIPT Standard
Aug 23, 2018 Innovations to Omnicell Patient Engagement Platform Support Value-Based, Patient...
Aug 14, 2018 ACHC and ExceleraRx Corp. Form Partnership
Aug 13, 2018 RetailSTARx with McKesson’s EnterpriseRx Supports ID Tracking for Controlled S...
Aug 07, 2018 Fagron, Inc. Announces New Hair Care Line - TrichoConcept™
Aug 03, 2018 Letco Medical, L.L.C. Launches Pharmacy Financial Services to Support Compoundin...
Aug 02, 2018 Beaumont Health Selects Omnicell’s Medication Management Platform and Services...

RXinsider Product Overview Videos