By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    email marketing in healthcare
    Harnessing the Power of Email Marketing in Healthcare
    October 26, 2023
    healthcare claims
    The Role of Communication in Resolving Complex Workers’ Compensation Claims in Healthcare Settings
    September 22, 2024
    Wounds and Wisdom: What Motorcycle Accidents Teach Us About Health and Healing
    Wounds and Wisdom: What Motorcycle Accidents Teach Us About Health and Healing
    February 12, 2025
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: The Benefits of Specialty Pharmacy: For Hospitals & Health Systems
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > The Benefits of Specialty Pharmacy: For Hospitals & Health Systems
BusinessFinanceHospital AdministrationNews

The Benefits of Specialty Pharmacy: For Hospitals & Health Systems

Moira O'Connell
Last updated: December 12, 2015 1:00 pm
Moira O'Connell
Share
0 Min Read
SHARE

Contents
Generating and Gathering DataDriving RevenueContinuity of CareThinking about Specialty Pharmacy accreditation? Join us 12/19 for our free webinar on The Power of Specialty Pharmacy Accreditation!http://bhmhealthcaresolutions.enterthemeeting.com/m/YZUPBQJT

The specialty pharmacy industry is booming and as many pharmacies opt for moving down the specialty pharmacy accreditation path, many hospitals and healthcare systems are starting to realize opening their own specialty pharmacies (or partnership with one) could be a good idea. The jump to specialty pharmacy for a health system or hospital, isn’t only a revenue driver as it gives them access but could also help with re-admissions, quality of care, and data collection. And as specialty pharmacies crop up all over the country, with an estimated 250 to be accredited by the end of 2015, it is the perfect opportunity for health systems to take fate into their own hands. From driving revenue, to increasing quality of care here are three main areas a hospital or health system can benefit in an in-house specialty pharmacy.

Generating and Gathering Data

Specialty conditions rely on specialty drugs, which in turn rely on specialty pharmacies. It is this unique relationship that provides a great opportunity for hospital and health systems to collect additional data on specialty drug outcomes and patient care. The ASHP reported in 2014 that Kevin Colgan who is Corporate Director of Pharmacy for Rush University Medical Center in Chicago was hopeful that opening a specialty pharmacy gives a health system access to a “robust data” could help them “determine which of the expensive medications work best.” This mentality is still very relevant in 2015. In “Five Health System Pharmacy Trends to Watch in 2016” published by McKesson, the company reported that one very important pharmacy trend would actually go-hand in with a booming healthcare trend, big data. According to McKesson, “A top priority for health systems is using analytics to track and monitor drug spending and use, patient care and quality. This data can be used to make better clinical and financial decisions. Lack of connectivity or interoperability of health records between pharmacy and other providers can be a major safety issue for patients and has continued to be an overall problem in the industry.” This doesn’t just apply to hospital pharmacies but can be applied to the specialty pharmacy industry. By having specialty pharmacy data available in-house, health systems and hospitals can record and control data themselves. The American Pharmacists Association reported on a specific case where The University of Wisconsin Hospital and Clinics opened a specialty pharmacy and completely enhanced their EHR system as to integrate with their pharmacy. By doing this they then were able to “see a patient’s visit history across health-system departments, the patient’s labs, and other medications among the abundant other information that pertains to a patient in a health-care system,” helping the pharmacy staff have a wider view of a patients’ medical history.

Driving Revenue

Generating revenue is constant for any hospital or health system. It’s staggering to think that by not having a specialty pharmacy, they could be missing out on a huge revenue driver. But just how much revenue are they missing out on? Billions, according to Jim Smeeding, the Executive Director of the National Association of Specialty Pharmacy. Pharmacy Practice News quoted Smeeding, who suggested that “a moderately sized health system with $2 billion to $3 billion in annual revenue stands to gain $20 million to $30 million annually by adding its own specialty pharmacy.”
This isn’t an outdated concept either. According the McKesson report (mentioned earlier) health systems can look toward specialty pharmacy no a “cost center” but as a revenue generator. Why? Well according McKesson “Whether still operating in a fee-for-service environment or shifting to a performance or value-based reimbursement model, the pharmacy can have significant impact on the overall P&L of a health system by focusing on incremental revenue opportunities such as ambulatory, specialty and mail-order pharmacy services1.“

More Read

During Nurses Strike, Patient Dies Due to Medical Error
Engaging Physicians and Others The Purely Old Fashioned Way
Fundings in Medtech 2009-2014: A Contrarian View
Three Aims of CMS & Well-Managed Healthcare Organizations
The 15 Most-Watched Medical-Device Stocks

Continuity of Care

It’s no secret that once a patient leaves the pharmacy, there are a wide variety of reasons why they may or may-not take their medication on time, or come in for a re-fill. Pharmacy medication management programs are crucial in situations of medication adherence. According the McKesson report pharmacies inside hospitals and health systems can actually help improve the continuity of care, medication adherence, and reduce readmission1. Still not convinced? According to Jim Smeeding, in Considering Specialty Pharmacy, a major concern for hospitals and health systems is “fragmentation of care, which impacts both cost and quality.” Opening a specialty pharmacy inside a hospital or health system might be the answer to breaking that gap in care – which in turn will increase medication adherence and quality of care. If a patient doesn’t even need to leave the building to get a prescription filled and their provider can work with their specialty pharmacist, this can only mean better care for the patient.

Works Cited

  1. McKesson Pharmacy Optimization® Team Identifies Five Health System Pharmacy Trends to Watch in 2016

Thinking about Specialty Pharmacy accreditation? Join us 12/19 for our free webinar on The Power of Specialty Pharmacy Accreditation!

http://bhmhealthcaresolutions.enterthemeeting.com/m/YZUPBQJT

Originally posted on the BHM Healthcare Solutions blog.

TAGGED:specialty pharmacy
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

10 Things Hospital Leadership Need to Know About Social Media and Marketing

July 18, 2014

Nurse Staffing and Care Quality

April 23, 2013
get the benefits of a breast implant surgery
News

Minimize Risks When Choosing Breast Augmentation Experts

September 13, 2022
benefits of online pharmacies
News

Guide to the Benefits of Ordering Medicine Online

November 9, 2021
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?