Lancaster General on reducing hospital pharmacy costs

by Jill Rebuck Hospital standardization programs typically involve physician preference items for orthopedic/spine and the catheterization lab. However, this approach also can be used in other departments as hospitals look for ways to cut costs. In particular, pharmacies represent a significant cost-saving opportunity since pharmaceuticals represent a substantial percent of hospitals' operating budgets. We took this approach at Lancaster General Health (LGH), a 623-licensed bed, not-for-profit health system in Central Pennsylvania, keeping the focus on providing the safest, highest quality medications while lowering costs. Toward this goal, LGH worked with VHA Inc., our regional purchasing coalition, to identify and implement tactics like standardization and utilization. As a result, we reduced our pharmacy costs by $1.5 million last year. One of the keys to our success has been our engaged, interdisciplinary formulary and pharmacy and therapeutics committees, which consist of physicians and other clinicians and pharmacists, including those with knowledge in clinical pharmacotherapeutics, who work together to identify new ways to improve patient care and lower costs. To learn more about Lancaster General's standardization and utilization efforts, read the full guest commentary at FierceHealthFinance.
Source: hospital impact - Category: Health Managers Authors: Source Type: blogs