Staying on top of med spend is challenging. Data is constantly shifting - from drug pricing and contract terms to inventory and utilization.
Without the right pharmacy data analytics, proper prioritization of savings opportunities is difficult. Manually approaching pharmacy data management given the scope and pace of change is too challenging, often leading to delays or inaccuracies in decision-making. In addition, the effects of any shift in purchase strategy can be hard to project quickly, and med spend insights are often limited. As a result, hospital pharmacy teams are increasingly turning to automation for faster, more complete, and more effective pharmacy procurement.
However, not all pharmacy data analytics tools are created equal.
As you begin vetting pharmacy management software options to improve med spend analysis at your organization, consider the following questions.
Free Checklist: Drug Cost Management for Hospital Pharmacy
Be wary of one-size-fits-all solutions. General business intelligence isn’t enough. When it comes to pharmacy analytics, you need a tool specific to the task at hand. Features to consider include automated opportunity alerts, real-time purchase oversight, instant reporting and analysis, and automatic notifications for contract changes, account discrepancies, and pricing errors.
It’s a valid assumption that your pricing and contract data will be the focus of any analysis. However, some vendors take the approach of merely notifying users of pricing shifts, or they may aggregate data to provide purchasing guidance. The right pharmacy data analytics vendor will work with your organization’s exact data and circumstances – inventory, utilization, GPO contract terms, WAC spend, wholesaler contract agreements, etc. An absence of data specific to you will result in an incomplete—and often inaccurate—set of assumptions and purchasing direction.
Also important is the ability to view your data and analysis in a most helpful way for decision-making. The right pharmacy management software will give you a complete view of purchasing across accounts in the enterprise with the ability to drill down by regions, facilities, ownership, or 340B status. You should also be able to view spending in real time and compare it against historical data.
Some vendors will take your data and sell it to third-party companies. Always seek a vendor that only partners with health systems and has systems in place to keep your hospital’s information secure.
Accurate med spend analysis and prioritization are based on a total view of your purchasing options, potential impacts, and neutral insights. If you’re seeing only a portion of the data or limited perspectives, your decisions may be skewed.
If you’re making decisions based on outdated data, you could be making incorrect assumptions. Real-time data helps identify opportunities faster and prevents unnecessary overspending.
Free Checklist: Drug Cost Management for Hospital Pharmacy
The design should be user-friendly and intuitive. If your team is flooded with alerts or overwhelmed with data, adoption will suffer.
The right solution should support mobile access so pharmacy leaders can quickly respond to questions wherever they are.
The best vendor should understand real pharmacy operations, including GPO dynamics, staffing challenges, implementation, and training.
Ask about security measures to ensure your hospital’s data remains protected.
Consider whether the vendor guarantees outcomes and uses a risk-share model that encourages long-term support and success.
See the outcomes QuicksortRx customers are achieving.