Integrated Delivery System

Pharmacy Service Analysis within an Integrated Health System

Industry	Integrated Delivery System
Problem	An integrated delivery system required an updated strategic pharmacy services plan to incorporate clinical services provided by pharmacists and establish a clear direction for the pharmacy program. A new business model needed to be created to reflect the changing healthcare financing landscape. This was a complex organization that had multiple pharmacy areas which had to communicate to create the vision and processes needed to achieve their strategic objectives.
PHSL Solution	PHSI identified issues that were slowing communications and comprehensive evaluation of operational and strategic alternatives. PHSI conducted onsite interviews including a focus group from different stakeholder groups to discuss the efficient provision of pharmacy services including product distribution, technology, and clinical programs. Analysis of documentation including clinical programs and financial results enabled the evaluation of strategic options, costs and benefits of pharmacy services.
Results	A strategic plan was developed with over 300 specific recommendations to improve pharmacy services for the health system. The health system prioritized recommendations based on estimated ROI, time and complexity to implement, and how many stakeholder groups were involved.

Industry	Integrated Delivery System
Problem	A non-profit integrated delivery system owned a specialty pharmacy entity experiencing rapid growth that could jeopardize the non-profit status of the organization. Management had concern that the specialty pharmacy was generating unrelated business income (UBI) at an increasing pace. System management wanted to evaluate the corporate structure to enable the specialty pharmacy to continue to grow without jeopardizing its non-profit status.
PHSL Solution	PHSI partnered with a national accounting firm to evaluate the pharmacy and corporate structure of the health system. PHSI provided the pharmacy expertise to work with health system management and the national accounting firm provided the tax expertise. Interviews were conducted with health system management and the specialty pharmacy reviewing the business plan, growth projections, and expected financial outcomes to project future UBI. The accounting firm evaluated the corporate structure and recommended changes that would enable the specialty pharmacy to grow and the health system to maintain its non-profit status with the least amount of risk.
Results	A detailed recommended corporate structure was created to identify a future state by mapping required changes to allow the specialty pharmacy to grow. The health system was prioritizing changes and identifying a sequence of structural changes to implement the recommendations.