Developed collaboratively by the ASHP Research and Education Foundation, the ASHP Section of Pharmacy Practice Managers, and ASHP Advantage.
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Less than 10% of all hospital discharge prescriptions are filled by Institution A pharmacy today.
This plan proposes to capture and deliver 25% of all home going prescriptions to the bedside before discharge. This program will be offered house-wide 7 days per week between the hours of 7am to 11pm when the majority of patients leave the main campus. This service will result in improved patient experiences (HCAPS scores), incremental revenue and margin gained, and the potential to decrease medication-related readmissions. Current staffing is inadequate for extended outpatient hours or the ability to offer delivery house-wide 7 days per week.
FINANCIAL ANALYSIS
Rx Volume
Revenue
Drugs
Total Expenses
EBIDA
YR1
49,225
YR2
50,702
YR3
52,223
YR4
53,789
4,411,925 4,803,436 5,145,440 5,511,795
YR5
55,403
5,904,235
3,414,875 3,721,577 3,986,554 4,270,396 4,574,449
3,948,105 4,270,804 4,552,257 4,853,071 5,174,604
463,820 532,631 593,183 658,724 729,632
Capital estimate is $600,000 from Office of Construction Management.
OPERATIONAL INTERDEPENDENCIES
Pharmacy will work closely with physicians, nursing, care management, and hospital throughput personnel on facilitating the prescription delivery process. A key assumption that will drive success is early identification of which patients are being discharged along with completed medication orders. Insurance benefit verification and copay collection is required prior to discharge. The pharmacy is not allowed to place the prescription charge on the patient’s hospital bill. Institution A will be renovated in its current space and robotic dispensing technology will be installed to support prescription volume growth.
EXIT STRATEGY AND ASSOCIATED COSTS
There is capital investment required for the renovation of the Institution A pharmacy and the addition of pharmacy robotic equipment. Should this volume not materialize, the equipment could be moved to another busy pharmacy operation.
PROJECT TRACKING AND REPORTING MECHANISM
Measures of success will be as follows:
Developed collaboratively by the ASHP Research and Education Foundation, the ASHP Section of Pharmacy Practice Managers, and ASHP Advantage.
Visit www.pharmacycsuitetoolkit.org
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
Patient experience HCAPS and net promoter scoring monthly
 P&L statement monthly
PROJECT MANAGEMENT
The Institution A pharmacy renovation will take 3-6 months after it is funded. Pharmacy will work closely with assigned Construction Manager to deliver project. Pharmacy will coordinate discharge bedside delivery with nursing leadership in phases with the goal of hospital-wide access within the first 12 months of go-live.
RECOMMENDATION
Finalize Institution A pharmacy construction estimate, request funding source and FTEs be approved, and launch program.
Developed collaboratively by the ASHP Research and Education Foundation, the ASHP Section of Pharmacy Practice Managers, and ASHP Advantage.
Visit www.pharmacycsuitetoolkit.org
3

ASSUMPTIONS:

Used Institution A cost & revenue/script as basis for incremental Institution A volume

Used Institution A cost & revenue/script as basis for incremental hospital volume
Rx Volume
Revenue
Drugs
S&B
Med/Surgical Supplies
Non Medical Supplies
Purchased services
Software maintenance
Other misc expense
Total Expenses
EBIDA
YR1
49,225
YR2
50,702
YR3
52,223
YR4
53,789
4,411,925 4,803,436 5,145,440 5,511,795
3,414,875
478,530
3,721,577 3,986,554
492,886 507,672
YR5
55,403
5,904,235
4,270,396
522,903
4,574,449
538,590
13,500
14,000
13,905 14,322
14,420 14,853
14,752 15,194
15,298 15,757
18,000
7,200
18,540 19,096
7,416 7,638
19,669 20,259
7,868 8,104
2,000 2,060 2,122 2,185 2,251
3,948,105 4,270,804 4,552,257 4,853,071 5,174,604
463,820 532,631 593,183 658,724 729,632
Staffing
Pharmacist
Technician
Days Evenings Nights Subtotal
0.4 1.4 1.8
0.4 4.2 4.6
6.4
Total W/ 17%
Coverage
2.1
5.4
7.5
Developed collaboratively by the ASHP Research and Education Foundation, the ASHP Section of Pharmacy Practice Managers, and ASHP Advantage.
Visit www.pharmacycsuitetoolkit.org
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Items
Institution A Pharmacy
Cost Comment
$250,000
Order of magnitude provided by
OCM Construction
Fixtures, equipment, casework
Robot
Design
Contingency
Total
$100,000 Quote received from vendor
$170,000 Quote received from vendor
55,000
$25,000
$600,000
Developed collaboratively by the ASHP Research and Education Foundation, the ASHP Section of Pharmacy Practice Managers, and ASHP Advantage.
Visit www.pharmacycsuitetoolkit.org
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Developed collaboratively by the ASHP Research and Education Foundation, the ASHP Section of Pharmacy Practice Managers, and ASHP Advantage.
Visit www.pharmacycsuitetoolkit.org
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