Insights

By: Steve Rough and Phil Brummond

In 2022, the financial impact of a changing payer landscape, drug and supply inflation, rising wages, increased utilization of an outsourced workforce and the diminishing governmental Covid-19 financial relief has put significant financial strain on most US health systems. Many organizations are operating in the red and are being challenged to transform their operations to overcome the headwinds expected in 2023. 

However, health systems that are leveraging and developing strong pharmacy programs are positioning themselves to successfully weather the storm that lies ahead. These organizations have developed a strong infusion strategy, progressive specialty pharmacy operations, a pharmacy revenue integrity program and have leveraged an innovative approach to acquire drugs at the best possible cost advantage. Health systems with these strategies and services are positioned for improved financial success in 2023. 

We see three specific strategies to position you for future success:

1.Develop a comprehensive organizational pharmacy strategy to grow revenue and margin, reduce non-labor expense and improve pharmacy business integrity. In 2022, we saw select health system pharmacy departments making significant investments to develop high-value pharmacy services and we expect more organizations to make bold moves to quickly leverage a highly integrated pharmacy program to drive improved quality, safety and financial health.

2.Expand the role of the pharmacy executive to develop and implement an organizational strategy to highly integrate pharmacy services. We see that this type of leadership can generate tens of millions of dollars in financial benefit. Successful organizations must position the pharmacy executive at the right level in the organization to drive system strategy and achieve results.

3.Leverage strong internal pharmacy services as a strategic asset. The opportunity to optimize programs like specialty pharmacy and infusion services has never been better and will improve the overall financial health of the hospital or health system. This is particularly important given the significant investments being made in the for-profit landscape aimed at disrupting the health system’s ability to provide comprehensive pharmacy services for their patients. With medications being one of the primary treatment modalities for disease, establishing stronger internal pharmacy programs that provide comprehensive care for patients across the continuum is key to succeeding in a future value-based payment environment. 

Visante consultants have experienced much success in helping health system executives understand the value resonant in the pharmacy service lines and how to properly invest and structure pharmacy as a strategic asset.  And with such understanding, significant investments in pharmacy resources typically follow suit.  We stand ready to assist you!  Contact us to learn more at solutions@visanteinc.com or call 866-388-7583.