Insights from the 2023 Annual Smarter Purchasing Report
As the healthcare industry continues to evolve, pharmacies face numerous challenges, from staffing shortages and rising audit frequencies, to the impact of direct and indirect remuneration (DIR) fees. These negatively impact day-to-day operations, financial situation and capacity to deliver high-quality treatment to patients. Navigating these hurdles requires a proactive approach and a commitment to finding innovative solutions.
The SureCost 2023 Annual Smarter Purchasing Report takes a closer look at these three obstacles, and highlights the critical role of purchasing strategies and how they make or break a pharmacy’s profitability and operational efficiency. Key findings, actionable recommendations and success stories are uncovered in the report, revealing the substantial savings of pharmacies who have implemented the Smarter Purchasing Solution™.
Here are a few highlights of the 2023 Annual Smarter Purchasing Report:
Staffing shortages are among the biggest problems affecting long-term and retail pharmacies. The demand for services in the pharmacy industry has significantly increased, placing pressure on the workforce. Additionally, the COVID-19 epidemic has made the industry’s personnel problems worse. Staffing shortages harm the operations, profitability and quality of care provided by a pharmacy.
Rise of 3rd Party Audits
The rising frequency and expense of third-party audits is another key issue that retail and long-term pharmacies must deal with. These audits are designed to ensure pharmacies are following rules and regulations and provide high-quality treatment. However, they are costly and time-consuming.
Impact of DIR Fees
DIR fees, levied by Medicare Part D plans and pharmacy benefit managers (PBMs), have become a growing concern for retail and long-term care pharmacists. These fees are unexpectedly and retrospectively applied, making it challenging for pharmacies to budget and plan effectively.
The Benefits of Smarter Purchasing
Smart Purchasing is a powerful methodology that retail and long-term care pharmacies use to overcome the negative effects of staffing shortages, 3rd party audits and DIR fees. By applying the 5 key smarter purchasing strategies below, pharmacies lower their expenses, improve their bottom line and make informed decisions.
Generic Savings Beyond the Top 200
SureCost’s analysis reveals that substantial savings are found outside the Top 200 generic medications. Many pharmacies are unaware of the discounts available for other items.
Accurate Value of Received Goods
At times, the actual value of goods received are less than what the pharmacists are invoiced for.
A pharmacy may place an order for a certain quantity and receive less or none at all. A vendor may fill the incorrect product and the pharmacy will have to pay for a product they didn’t request. By utilizing a single interface that integrates with their current systems, pharmacies quickly compare what they ordered, what they received and what they’re being charged for.
Empowering pharmacies to monitor and compare invoices against orders, minimizes errors in the procurement process. By tracking vendor compliance and pricing, pharmacies avoid overpayment and maintain financial stability.
Avoid Re-ordering Costs
With real-time insights on product availability, prevent costly reorders due to stockouts. By consistently having the right medications in stock, pharmacies reduce patient dissatisfaction, maintain operational efficiency and avoid unnecessary expenses.
Track Vendor Substitutions
Identify and track vendor substitutions by providing comprehensive data on product equivalencies and pricing. Enabling pharmacies to make informed decisions and ensure they’re receiving the best possible products at the most favorable prices. By actively managing vendor substitutions, pharmacies minimize disruptions to patient care, control costs and maintain a competitive edge.
It is crucial for pharmacies to embrace the power of smarter purchasing. By implementing these strategies, pharmacies not only survive, but thrive, ensuring financial stability, efficient operations and the delivery of high-quality care to their patients.
To learn more about these essential smarter purchasing strategies and gain deeper insights into maximizing your pharmacy’s profitability, join the upcoming webinar on August 2nd, 2023. This webinar will cover the topics discussed in this report and provide practical tips and strategies to optimize pharmacy purchasing processes. Don’t miss this opportunity to gain a competitive edge in the market!