WITH THE PHARMACEUTICAL/HEALTHCARE INDUSTRY, and more specifically the pharmaceutical supply chain, undergoing rapid change, the need for additional support and strong relationships is crucial. We are living through an unprecedented time of drug and supply shortages, regulatory compliance pressures, and cost and reimbursement challenges. At a time when you need stronger supplier relationships, we are seeing in many cases those relationships challenged or eroding. Profit constraints across the entire industry are driving wedges in the customer-supplier relationship. The prime vendor business model, despite all the industry changes, remains static, and both contract management assistance and customer support are difficult to obtain or use.
However, one new area has opened that is actually supportive of pharmacies and provides tools to help manage contracts. This technology-driven approach provides purchasing analytics and regulatory support and aids in identifying profit-enhancing opportunities. The PharmSaver platform, now in its 10th year since inception, has steadily grown and enhanced business relationships specific to the pharmaceutical supply chain.
Let us identify industry challenges and elaborate on how the PharmSaver technology-driven approach supports solutions.
DSCSA (Drug Supply Chain Security Act) Regulatory Compliance
With the upcoming regulatory changes, pharmacies are challenged to find mechanisms to both collect and store the data required for compliance. While a number of software companies are selling collection and storage solutions, the PharmSaver purchasing platform is the only one to date that sets up and provides data collection and storage services at no cost to the pharmacy.
Reimbursement and Cost of Goods
The aggressive nature of the insurance and PBM (pharmacy benefit manager) industries has created a situation where many drugs, if not purchased correctly, will result in a negative reimbursement and financial loss to the pharmacy. The PharmSaver platform creates a seamless and automated way to assure the most competitive cost of goods for products purchased. The “Reimbursement Alert” feature warns pharmacies of potential negative reimbursement prior to purchase.
Prime Vendor Agreement Management
The prime vendor agreement (PVA) is the most important relationship a pharmacy can have. Negotiating, managing, and complying with the PVA can be a “make or break” moment for a pharmacy. The PharmSaver platform allows pharmacies to load the specifics of their agreement within the PharmSaver system. With this information, which remains confidential to every pharmacy, PharmSaver gives pharmacies the tools to comply with, manage, and optimize their specific PVA. Using the PharmSaver system not only aids in contract compliance, but also assures appropriate product selection and assists pharmacies in maximizing rebates associated with their respective PVA.
GPO and Other Contract Maintenance
More and more pharmacies today belong to multiple GPOs (group purchasing organizations). The task of correctly managing and identifying opportunities becomes challenging, and doing comparisons that factor in rebates is difficult. The PharmSaver platform not only allows pharmacies to identify and load multiple GPO agreements but also, in its automated analysis, identifies the best opportunities at dead net. The system takes into account rebates that may apply to some items but not others, and chooses those that will provide the lowest net price available.
Enhanced Profit-Generating Opportunities
For many pharmacies with larger volumes, volume purchase incentives and short-dated product options can present a compelling opportunity. The PharmSaver platform has a unique short-dated opportunity application that will not only identify price opportunities, but, based on a pharmacy’s volume, actually suggest purchase quantities. The system will then go so far as to block these items from reorder for a period, assuring that the short-dated product is used and not pushed to the back of the shelf.
Pharmacies using analytics and internal reporting can address inventory, profitability, and margin concerns, as well as many other day-to-day management issues. The PharmSaver platform provides dynamic tools and reporting, such as NDC (National Drug Code) or GPI (generic product identifier) matching, product size and volume opportunities, automated order and replenishment, and interfaces with pharmacy management and robotic systems. In today’s AI-driven world, data is critical to managing your business and your business relationships.
While current industry challenges can be daunting, there are solutions out there that provide available tools to help manage your business, enhance profitability, and save staff time. Perhaps one of the best features is that the PharmSaver platform and all that it provides are absolutely free to pharmacies. In the 10 years since launch, we have grown to over 3,000 pharmacy users, which is the greatest validation available to the utility of the platform. CT