Nursing Home Pharmacy’s Operations and Financials Dramatically Improved

ProblemA privately held nursing home company with ten facilities opened a pharmacy to service their homes. Pharmacy management had failed to improve operating results and additional funding was required from the parent company.
PHSI SolutionPHSI worked on site with the chief operating officer and general manager to evaluate the functional areas, understand the workflow, assess the capabilities of the dispensing system, and create a turnaround plan. A perpetual inventory system was created using dispensing software and purchase information from the wholesaler. PHSI helped the company set specific goals for inventory turns that enabled the pharmacy to free up $300,000 in inventory while maintaining service levels. Operational reports were created to assist management in assigning duties to the staff. Meetings were held with the pharmacy billing staff, facility administrators, and directors of nursing to discuss outstanding prior authorization issues, requests from facilities for non-covered items, and cycle fill procedures. A standard set of operating processes and procedures were jointly developed and implemented to improve operating efficiency and profitability. Pharmacy workflow was revamped to increase dispensing efficiencies and better allocate resources to improve customer service.
ResultsOwnership regained control of the pharmacy operation with new business processes and internal controls that freed up over $400,000 tied to excess inventory, supplies, and staffing.