OPTIMIZING DRUG USE MANAGEMENT KAISER PERMANENTE NORTHERN CALIFORNIA Sharon Levine, MD January 16, 2002 THE ORGANIZATION GROUP MODEL HMO, PREPAID GROUP PRACTICE INTEGRATED DELIVERY SYSTEM (Medical Groups, Hospitals, Health Plan) MUTUAL EXCLUSIVITY LARGE, STABLE POPULATION LONG HISTORY OF INTEGRATED PHARMACEUTICAL MANAGEMENT ¾ ¾ ¾ 245 Pharmacies 1800 Pharmacist FTEís $1.6 Billion Drug Spend 21800 2 DO Generic Substitution Therapeutic Conversion (physician-directed) Formulary Exception Process Physician/Patient Education Retrospective Review of Prescribing Practices Peer Feedback Academic Detailing DONíT DO Prospective UR/Prior Authorization Pharmacy Risk Shifted to Medical Group Financial Incentives for Physicians (e.g. bonuses tied to generic use, formulary compliance) 3 MEDICAL GROUP CULTURE AND FORMAL ORGANIZATION (SYSTEMS, STRUCTURES, PROCESSES) ENABLE PHYSICIANS TO DO THE RIGHT THING 4 3 FULL PARTICIPATION/ENGAGEMENT IN THE PHARMACY AND THERAPEUTICS PROCESS Every Department Every Medical Center Each Region (Northern and Southern California) Full Partnership with Pharmacy 5 OWNERSHIP OF THE PROCESS COMMITMENT TO THE OUTCOMES CLINICAL DISCIPLINE Industry leading use of generics (98% generic use when generics available) Industry leading formulary compliance (97% formulary prescribing) Formulary exceptions without pre-authorization 6 INTEGRATION OF PHARMACEUTICAL THERAPY WITH CLINICAL CARE; CHRONIC CONDITION MANAGEMENT DATA SYSTEMS: Patient Safety; Utilization Management; Peer Feedback PIMS PharmaFax TRACRx POINT 7 AGGRESSIVE MANAGEMENT OF PHARMACEUTICAL COMPANY ACCESS TO PRESCRIBERS Pharma Rep Visitation Policy Non-Detailable Drugs Sanctions Imposed on the Company for Violations of the Policy 8 COMPREHENSIVE AND PERVASIVE PHYSICIAN EDUCATION ì Cost Effective Prescribing is Quality Careî CME Programs; Leadership training; ClinicianPatient Communication training; Region-wide Educational video-conferencing: ¾ ì Solutions to Rhinitisî ¾ Antibiotics and Respiratory Infections ¾ Cox II Inhibitors ¾ Physicians and the Pharmaceutical Industry 9 Drug Education Coordinators Member and Patient Education ¾ ¾ ¾ ¾ Prescription drug stories in all member communication vehicles SPOTLIGHT newsletter in Pharmacies and Waiting Rooms Video clips in Waiting Areas Targeted, condition-specific member communication 10 Results New Rxís market share: 2001 100% 6% 80% 60% 40% 44% 94% 56% 20% 0% K-P Other NSAIDs Retail CelebrexÆ/Vioxx 11 Results Ulcer Medication Market Share KP maintains use of generic H2 antagonists which have eroded in the U.S. 100% 90% 80% 70% 60% Generic 50% 40% 30% Generic 20% 10% 0% KP CA Tagamet U.S. Zantac Prilosec Prevacid 12 Results Cholesterol Medication Market Share KP uses almost 100% of our preferred products for cholesterol 100% 90% 80% KP Preferred 70% 60% 50% 40% 30% KP Preferred 20% 10% 0% KP CA A U.S. B C D 13 RESULTS QUALITY CAMPAIGN TO DRIVE APPROPRIATE USE OF ANTIBIOTICS IN OUTPATIENT RESPIRATORY INFECTIONS 13% Overall Decrease in Utilization of Antibiotics No Increase in Outpatient Visits No Increase in Hospitalization Rates 14