There are a number of tactics that you can use. To get that “just right” amount, you should look to supply chain data within your automated systems. For example: When I think about the hospital pharmacies that excel at pharmacy inventory management and that use all the mentioned skillsets and tactics to their patients’ advantage, they share some cultural characteristics: Do those traits describe your hospital pharmacy? You can limit these costs by limiting the inventory you keep on hand.

Our pharmacy has saved a significant amount of money in just a few months of using them as a distributor.

It means your hospital pharmacy can flourish, and your patients can get the care they need. Business Consulting & Revenue Cycle Analytics, Oncology EHR, Regimen Support & Analytics, drug inventory management solutions for hospital pharmacies. There is a fine line between having the right drugs at the right time for your patients and being overstocked, which can lead to wastage, diversion risks and tying up extra capital. As you know, payment models are shifting from volume to value. Follow inventory best practices that offer strong clinical, cost saving, and revenue generating opportunities. Not all pharmacy inventory management best practices need to completely turn your business upside down. Christopher Van Norman discusses this in “How Your Hospital Pharmacy Can Manage Drug Shortages.” Van Norman is the director of operations for McKesson Pharmaceutical Solutions and Services.

While it’s true that most pharmacy inventory management systems could benefit from a complete audit, that isn’t always viable for your business.

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He notes that you should have proactive communication with three key groups: When you communicate effectively with everyone involved in getting the right drugs to your patients at the right time, you do your due diligence in preventing a shortage. McKesson RxO® is a registered trademark of McKesson Corporation and/or one of its subsidiaries. Archives of Pharmacy Practice. But if you tap into data within your supply chain, you can make positive changes that help your hospital pharmacy achieve both of those goals simultaneously. You need tactics to prevent drug shortages. Get inventory management tips and best practices from a finance pro. If they fail to pick up their order, you’re left with the expired medications which you could have sold a week ago.

Things like unavailability of raw materials.

“Inventory is usually a pharmacy’s largest asset.

When pharmacies think about improving inventory management, some are resistant to the change. Not all pharmacy inventory management best practices need to completely turn your business upside down. You might feel your hospital pharmacy has inventory management down to a science. She explains that hospital pharmacies often default to ordering the same quantity of inventory as they have in the past.

This is the first step towards maintaining a pharmacy inventory management system and it’s often where there are the most inefficiencies. Just-in-time inventory management may be simple, but it will cost you in overnight shipping fees and other fulfillment costs.

One of the best ways to keep pharmacy inventory and overall inventory costs low is to practice, Want even more tips for improving your pharmacy inventory management?

You need ways to keep costs down while providing top-notch care.

Related: Learn more about McKesson’s consulting and technology solutions for hospital pharmacies.

There are several things you’ll need to be able to carry new drugs: When you have a thoughtful plan in place, your hospital pharmacy is in a better position to acquire new, breakthrough drugs for patients who need them the most. Or an unexpected spike in demand. Let me tell you what new skillsets and tactics should be in your pharmacy’s inventory management toolkit.

That places an additional burden on your hospital pharmacy to stock the most effective drugs at the lowest possible cost. Suggested Citation: Ali AK. I will also describe the characteristics of a hospital pharmacy that knows how to put that toolkit to good use.

A recall.

1. This also allows you to better take advantage of overstock and short-dated Rx.

While managing existing drugs is often challenging enough, your hospital pharmacy also needs to find ways to carry new drugs as they emerge. You can find software that fits your system and use it to keep yourself organized and streamline the process.

When pharmacies think about improving inventory management, some are resistant to the change. Pharmacy inventory management is a complex but critical process within the healthcare delivery system. All other marks mentioned are trademarks or service marks of their respective owners.

I can think of several good reasons. Terry Smith discusses this in “New Drugs Require Strategic Planning for Hospital Pharmacies.” Smith is the vice president for McKesson RxO.

Ryan Yanicko Cannon Pharmacy.

At any given time, your hospital pharmacy is up against some tough inventory management challenges.

Most pharmacy owners already have a pharmacy inventory control method that works for them and don’t like the idea of completely rethinking that system.

Cindy Jeter expands on this in “Empower Your Hospital Pharmacy’s Supply Chain Through Data.” Cindy Jeter is the supply chain management consultant for McKesson RxO. Here are three strategies to achieve these common inventory management goals.

When I think of the skills that your hospital pharmacy needs to be successful in this new and challenging environment, a few come to mind. McKesson editorial staff is committed to sharing innovative approaches and insights so our customers can get the most out of their business solutions and identify areas for operational improvement and revenue growth.

Check out our 2017 Buyer’s Guide for Pharmacy Owners.

When you are a more efficient purchaser, you save money and cut waste. Reducing pharmacy inventory does require you to have a better idea of your demands, adjust for seasonal changes and keep tabs on new generics that may change demand, but the benefits are definitely worth it. And you need to be able to carry the innovative new drugs that patients need. Related: Learn more about McKesson’s drug inventory management solutions for hospital pharmacies.

Another good pharmacy inventory management best practice deals with how your pharmacy receives and adds new items to your inventory. A delay in manufacturing. Either way, there are a number of ways you can improve your inventory management to better serve the clinical needs of your patients and the fiscal needs of your hospital. Cindy graduated from West Texas A&M University with a Bachelor of General Studies degree and is a certified pharmacy technician and certified purchasing professional.

Minimizing costs while delivering better care can sometimes seem like a daunting task. You have the correct amount of inventory on your shelves to manage costs and deliver optimal care.

Inventory management software also allows you to predict trends and be more proactive with your ordering, which can help with the other pharmacy inventory management best practices mentioned above. Following the tips above can help your hospital pharmacy manage its inventory in a way that benefits everyone involved. Why do you need to upgrade your pharmacy’s inventory management toolkit in the first place?

Each tests your ability to manage your drug inventory effectively.

One of the areas pharmacies can lose money is in their will-call bin. Inside: Pharmacy inventory is a key financial asset for independent pharmacies.

He notes that the high cost of new drugs requires you to be fiscally responsible while also planning ahead.

When you have a thoughtful plan in place, your hospital pharmacy is in a better position to acquire new, breakthrough …

McKesson Corporation, U.S. Pharmaceutical, 6555 N. State Hwy 161, Irving, TX 75039. By understanding what your demands are you can optimize how and when you place orders.

But doing so means planning for a number of factors that can cause a shortage. "SaveBigRX offers great deals on many popular generic and even brand medications. This cost is often increased by storage costs and waste when pharmaceuticals expire.

Preventing drug shortages is crucial to delivering consistent care to your patients. In fact, it’s the largest cost your pharmacy will have. Luckily, there are still relatively simple improvements you can make to your inventory management.

Without adequate pharmacy inventory management practices, hospitals run the risk of not being able to provide patients with the most appropriate medication when it is most needed.

Inventory Management Tips Hospital Pharmacy, Taking Your Hospital Pharmacy's Inventory Management Skills to the Next Level, Business Consulting & Revenue Cycle Analytics, Oncology EHR, Regimen Support & Analytics, How Your Hospital Pharmacy Can Manage Drug Shortages, Empower Your Hospital Pharmacy’s Supply Chain Through Data, New Drugs Require Strategic Planning for Hospital Pharmacies, consulting and technology solutions for hospital pharmacies, Whether the demand for a drug has diminished, Whether a newer drug with better clinical results is available, Whether historic prescribing patterns have changed, Whether you need to adjust your periodic automatic replenishment (PAR) levels. You need new skills and tactics to convert all those new challenges into opportunities to improve patient care and to meet your hospital’s financial needs. One of the best ways to keep pharmacy inventory and overall inventory costs low is to practice proactive pharmacy inventory management. Cindy Jeter is a supply chain management consultant for McKesson Pharmacy Optimization. By pursuing the skillsets that I mentioned and the tactics that I listed, your hospital pharmacy will find itself on the right side of that line and be able to provide the best possible care to your patients at the lowest possible cost to your hospital.