Justification & Development of a
Pharmacy Purchasing Professional
Richard Ponder, MBA, CPhT, CPP, CEPP, CMRP
Division Inventory and Procurement Analyst
HCA – Delta Division
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Objectives
• Describe the role of a dedicated pharmacy
purchasing professional.
• Outline steps to justify and create a dedicated
pharmacy purchasing professional.
• Describe a model to prepare pharmacy
purchasing professionals for future practice.
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Current “Buyer” Role
• Varies significantly among hospitals
• Traditional functions
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Order medications and supplies
Receive order/invoices
Restocking and repackaging
Maintain inventory area
Borrow/Loan
Billing – departments, pt. charges, coding, etc
Reports, Audits, Analytical task
Work with automation systems
Communicate supply issues to…..
Assist in technician duties
Perform any and all task assigned
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Barriers
• Human Resource Department
– value, background, knowledge, and skills
– “Don’t we have a department for that?”
• Pharmacy Support
– value, perception
– “All you do is play on the computer and talk on the phone.”
– “How did you get a promotion/pay increase when we
never have anything on the shelves?”
• Professional Development
– Education, certifications, additional training
– Lack of Pharmacy and/or Healthcare specific
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
A Pharmacy Purchasing
Professional
An individual working with pharmacy who
leverages his/her knowledge and experience in
the purchasing of products and services
required to provide all customers with quality
cost effective healthcare.
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Pharmacy Purchasing
Professional’s Role
• Traditional functions
• Provides Pharmacy with expertise in:
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Business
Contracts
Logistics and Distribution
Project Management
Process Improvement
Quality Controls
Supplier Relations
Customer Relations
Technology
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Top Skills for the Future
• Negotiations
• Relationship
Management
• Legal Aspects of
Purchasing
• New Technology
/Software
• Electronic Commerce
• Strategic Planning
• Logistics
• Inventory Control
• Cost/Price Analysis
• Performance
Measurements
• Supplier Evaluation
• Contract
Development and
Management
• Team Building
Sourced: CAPS Study, PET II 2004
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Justification- How?
• Professional – more work & documentation
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Position description vs. current responsibilities
What do I need to know?
What do I need know how to do?
“What have you done for me lately?” book
Internal Proposal
• Management – ROI
– Executive Summary, Background & Description,
Market Analysis, Clinical and Quality Requirements,
Operational Structure & Processes, Financial
Projections, Critical Risk and Opportunities
– Job Function Analysis
– Salary, Wages and Benefits
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Career Development:
Advancement, Security and Value
• SMART
– Specific, measurable, agreed upon, realistic and
time-bound
• FAMIC
– Few in number and focused, aligned internally and
organizationally, intended to build mastery;
incremental; and controllable
• FITEMA (AFITME)
– Fairly determined, individual, task-focused, errortolerant, matched with the cadence of work and
action-oriented
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Pharmacy Purchasing Professional
Career Levels
1
Technician, Senior/Lead Technician
2
Buyer
3
Supervisor, Coordinator, Agent, Analyst
4
Manager, Regional, Corporate, GPOs, Beyond
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Pharmacy Purchasing Professional
Position Elements
1
Scope of practice
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Education, certification, and training
3
Experience
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Knowledge, skills and abilities
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Scope
Technician
Buyer
Supervisor
Manager
Performs a variety
of duties in addition
to purchasing.
Competent in the
core elements of
purchasing
addendums.
Fully competent in
all elements of the
operational
addendums.
Fully competent in all
elements of the
operational and
financial addendums.
Task Driven
Inventory
Management
Supply Chain
Management
Strategic
Management
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Education/Certification/Training
Technician
High School
diploma (or GED).
Must comply with
state specific
pharmacy
technician
regulations and
requirements.
Nationally
Certified
Technician
preferred.
Buyer
Nationally
Certified
Technician
required.
2 year college
degree
preferred.
Supervisor
Manager
Nationally Certified Nationally Certified
Technician
Technician required.
required.
4 year college degree
2 or 4 year college in related area
degree in related
required.
area required.
Certification and
Certification and
additional training in
additional training related area required.
in related area
preferred.
Masters preferred.
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Experience
Technician
0 to 2 years of
pharmacy
technician
experience.
Buyer
Supervisor
2 to 3 years of
3+ years of hospital
hospital pharmacy pharmacy technician
technician
experience.
experience.
2 to 3 years of
Purchasing
pharmacy purchasing
experience
experience in multiple
preferred.
acute care hospitals
preferred.
Manager
5+ years of pharmacy
purchasing experience
in mid to large size
hospitals or health
systems.
Established success in
operational and
financial arenas.
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Job Overview
• Essential Functions
– Establish and maintain appropriate cost effective on hand
product availability
– Implement and maintain best practice in pharmacy supply
chain operations
– Work with management, purchasing, accounts payable,
business operations, clinical departments and hospital
customers to identify opportunities of cost savings or clinical
value
– Conducts audits and analysis of contract compliance,
invoices, charge master and department finances
– Prepare presentations, reports and other documents as
needed relative to cost and assigned projects
– Maintain compliance
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
How can I become a Pharmacy
Purchasing Professional?
• Personal Assessment, Goals and Plan
• KSA - ABCs
– Analytics, Business and Communications
• Training Agenda
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Determine needs: personal and employer
Decide on type/style
Negotiate commitment
Document training
Document new skills in action
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Resources
• No Cost
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Social Media: industry specific topics/groups
Library: books/article on supply chain, finance, operations
Publications: Pharmacy related for trends/industry news
Employer: PowerPoint, communication skills, excel, etc
GPO & Wholesaler: educational offerings
• Low Cost
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Membership: NPPA, ASHP, AHRMM, APICS, PMI
Books, podcast, book summaries
Training/certificate courses
Certification
Conferences/Meetings
• High Cost
– Formal education
– Training programs
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Resources
• No Cost
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Social Media: industry specific topics/groups
Library: books/article on supply chain, finance, operations
Publications: Pharmacy related for trends/industry news
Employer: PowerPoint, communication skills, excel, etc
GPO & Wholesaler: educational offerings
• Low Cost
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Membership: NPPA, ASHP, AHRMM, APICS, PMI
Books, podcast, book summaries
Training/certificate courses
Certification
Conferences/Meetings
• High Cost
– Formal education
– Training programs
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
“The” Pharmacy Purchasing
Professional of Tomorrow
• Nationally Certified Pharmacy Technician
• Bachelor's in Business Administration or Supply
Chain Management with a minor in Management
Information Systems
• Certification in supply chain, healthcare supply
chain, project management, business analyst, etc
• Diverse experience – internships, volunteering,
organization involvement, etc
• Master’s in Healthcare Administration or Business
Administration
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
A “CPhPP” Future
Hospital
I now
have
options.
Business Manager
Operation Manager
Supply Chain
Finance/Revenue Analyst
Industry
Regulatory
Sales
GPO
Consulting
Insurance
Instructor
Automation
Policy
Patient Safety
Leadership
cGMP
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Conclusion
• Organizations should support the hiring,
development and retaining of quality Pharmacy
Purchasing Professionals
• Continuous education and training is needed for
the advancement of the profession
• Each Pharmacy Purchasing Professional is
responsible for the promotion and advancement
of their profession
National Pharmacy Purchasing Association’s 15th Annual Conference 2011
Any Questions?
Email: Richard.Ponder@hcahealthcare.com
National Pharmacy Purchasing Association’s 15th Annual Conference 2011