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Pharmacy System Strategy

Review trends and best practices in coordinating pharmacy operations, and explore case studies from three organizations that have taken different approaches toward pharmacy systemness.


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There's no one-size-fits-all model to achieve pharmacy systemness—but there are steps that pharmacy leaders can take, wherever their organization is in the journey, to ensure systemness efforts result in lasting change.

This study reviews trends and best practices for systems working on pharmacy operation coordination and explores case studies from three organizations that have taken different strategic approaches toward pharmacy systemness.

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Keys to pharmacy systemness

Over the past few years, there has been unprecedented M&A activity and provider consolidation. Underlying all of this consolidation is the belief that larger health systems will be better positioned to drive value.

Specifically, many organizations believe that their newfound scale will result in benefits of lower costs, higher care quality, and better patient experience. Read more starting on p. 7 about how systemness can contribute to improvements in these areas.

Despite the potential benefits of systemness, though, many health systems are realizing that bigger does not automatically translate to better. Organizations are finding that they may be unified on paper, but not in their operational realities.

Many struggle with the operations of merging new services and facilities, which can be further exacerbated by a lack of a unified strategy or vision. Read more starting on p. 10 about the current state of pharmacy systemness, common challenges, and hallmarks of true integration.

The path to systemness is unique for every organization. The process is incremental and takes time and planning, but a three-part framework for starting an initiative may be relevant to all organizations, regardless of their place on the journey. Read more starting on p. 14 about three steps toward true systemness.

Three examples of pharmacy systemization

Indiana University Health

Built over time through mergers and acquisitions, IU Health's pharmacy enterprise has developed to fit their system structure and geographic spread.

IU health uses a matrixed reporting structure where the majority of local pharmacy leaders report in a dotted line relationship to the system VP of pharmacy and in a solid line to facility leadership. Facilities that are part of the academic health system pharmacies, based in Indianapolis, report directly to the VP. Keep reading on p. 22.

OhioHealth

OhioHealth's corporate pharmacy structure supports the spread of best practices and system alignment. The system VP of pharmacy services directly manages five enterprise-wide departments, which include the breadth of inpatient and ambulatory pharmacy operations, compliance, clinical pharmacy initiatives, and pharmacy business operations. Keep reading on p. 25.

Scripps Health

Scripps Health's five hospitals are in relatively close proximity to one another, which allows for close collaboration between the executive director (ED) of pharmacy operations and the pharmacy director for each site.

Although formally this is only a dotted-line relationship, in practice, it functions more like a solid line relationship with weekly meetings. This improves standardization and system-level initiatives. Keep reading on p. 28.

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