GPO_Inventory PPT

Patient pays their co pay andor co insurance assume

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Unformatted text preview: Assume patient pays their co-pay and/or co-insurance Assume ASP @ $9,300 Practice Drug Spend: GPO vs. non-GPO Contracts GPO Contract, 35% Non-GPO Contract, 65% How to Select a GPO Services and Products Contracting Educational Programs Practice requirements Quality Initiatives Regimen Analyzers/Profilers Practice Analyzers Clinical Trials Technology Pharmacy Dispensing/Inventory Control EMR Financial Services Customer service Inventory Management Why are effective purchasing and inventory management important? Pharmaceutical inventory can represent the single largest investment of the practice Goals of inventory control Minimize the inventory investment Maintain as low an inventory as possible Balance supply and demand Minimize procurement costs and carrying costs Maintain an up-to-date inventory management system Increase inventory turnover without sacrificing service Effective purchasing Avoid expired drugs and waste Formulary Management Important to control costs and improve margin Selection of supportive care formulary can have a drastic effect on finances and reimbursement Maximization of contract incentives and rebates Utilization of generics Contracts within some GPO’s provide financial incentives if majority of generic purchases are through them Purchasing Maximize contracts and obtain lowest possible pricing Utilize more than one purchasing source Not all inventory items deserve the same attention High cost vs low cost goods (e.g. bevacizumab vs dexamethasone) 80/20 rule – the 20% probably accounts for up to 90% of the inventory investment Lead Time The interval between placing the order and having it ready for dispensing Safety Stock Extra units carried a protection against running out of stock Reorder Point Inventory level where stock is replenished Inventory Turnover Rate (1/2) Measures the effectiveness of the inventory management system Inventory turnover rate represents the average number of times the inventory is sold and placed during a defined period A high turnover rate represents indicates effective product management in relation to average inventory on...
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This note was uploaded on 01/24/2011 for the course BUS Mkt taught by Professor Tbd during the Spring '10 term at Montclair.

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