Explore the Consignment Invoice Template for Product Management

Consignment invoice template for Product Management

welcome everyone to today's webinar the growth of specialty pharmaceuticals using a consignment model as a strategy for the future sponsored by Cardinal Health I am Mackenzie beam with Becker's Hospital review we will begin today's webinar with the presentation and we'll have time at the end of the hour for a question and answer session you can submit any questions you have throughout the webinar by typing them into your control panel in the space labeled enter a question for staff and clicking send we are looking forward to hearing your questions additionally in about a week following the webinar we will be sending you a copy of the presentation to the email you used to register at this time it is now my pleasure to start today's webinar by introducing our presenters John Kilgore is the national vice president of sales and marketing for the specialty pharmaceutical distribution business of Cardinal Health John leads a team of sales and technology professionals who are focused on implementing innovative technology solutions that can help health systems operate more efficiently while delivering high-quality patient care John has spent his entire career in healthcare and has business and management experience in pharmaceutical and medical surgical supply chain distribution James roof is the national director of consignment and Technology programs at Cardinal Health James is focused on the development of various inventory technologies consignment growth strategies and the emergency drug response program which helps provide immediate access to life-saving treatments he has had 19 years of experienced with Cardinal health specialty pharmaceutical distribution and has held various leadership roles with responsibilities managing national accounts group purchasing organizations and manufacturer relationships John I'll now turn the floor over to you well thank you very much and good afternoon everyone I'd like to personally thank each and every one of you for participating on this call this afternoon in spending time with us we start by saying that of course there are many aspects you know - you know the landscape that we talk about here and is presented before you I've highlighted four categories only four there are many more being beyond what is described here but I think that before that I'd like to highlight there are the ones that are identified in red but let's just take a look at what we considered to be an ever-changing and complicated healthcare landscape we'll start with those global demand swells this point is to to raise awareness around increasing demand driven by shifting demographics people of course are living longer many have complex diseases that increase their healthcare needs putting more demand on the healthcare system and for sure jumping over to the power of generics and breakthrough innovation the drug landscape is increasingly divided between the generics the capturing almost 90 percent of the pharmaceutical volume and the specialty biopharma agents that represent the ever growing portion of the dollar spend nearly 50% by 2021 we're going to talk a little more about that as we get into the presentation here next if you jump over to care ships to more efficient settings this is all about getting a patient to the home given the transition to value case value-based care providers payers and patients alike are all seeking ways to achieve desired outcomes from lower costs providing high quality care outside of the walls of acute settings is a real key way these goals can be achieved here's an example if a patient can successfully be discharged from a hospital directly to the home with appropriate and coordinated home nurse visit or caregiver support that patient may be able to forego a costly stay at a skilled nursing home facility now let's jump over to the other identified right bucket there if you will the value-based care we hear more and more about valuing value-based care all the time and once you've heard one definition you've probably heard one definition we know that integrated risk taking providers are leading a new shift to put different payment models some providers have been proactive about taking risk such as a accountable care organizations a cos payer provider health systems and those who volunteered for CMS's bundled payment for care improvement initiatives success has been varied and largely depends on the health systems to have visibility across the care continuum with infrastructure or partners to deliver that integrated care and next slide please so it becomes quite obvious that specialty of that new specialty definition that we've all kind of grown accustomed to will continue to drive market growth look at our recent history in 2012 that specialty definition only occupied roughly 28% of the total spend by 2016 39% and and predictions at the end of 2021 to greater than 50% so let's talk about let's think about this for a moment speciality pharmaceuticals are outpacing the growth of traditional pharmaceuticals by the Year 2021 it's expected that half of the fun industry spend will be on these specialty medications a hundred new drugs think about this if we look at the R&D pipeline which I already have drugs classified as specialty we expect to see over 100 new specialty drugs available over the next five years and within that of course is that space to be defined as biosimilars so so what my replication is for hospital pharmacies and of course they are many with regard specialty pharmaceuticals let's think about the following especially the final signals may have a low following of an unpredictable demand these treatments are often higher in cost and the traditional pharmaceuticals and we're all finding out about that very quickly are usually they're higher cost than traditional pharmaceuticals high your inventory camera costs their risk associated and the importance of managing all those expiration dates with a higher invoice cost an entire inventory carrying cost if you choose to stop these products hospital pharmacies can't afford they simply can't afford to have specialty drugs expiring and and therefore running off those high-class drugs also storing specialty pharmaceuticals in the correct conditions is additionally very important they may be called chain products so having the proper refrigeration on those products will be required to ensure product integrity so what does all this mean for tusko pharmacist today hospital pharmacists are being challenged to think differently I remember hospital CEOs ala green sustainable cost control is their number one priority 81% of hospital pharmacists cited reducing costs as a top priority in 2018 and productivity improvement was cited as the top labor management initiative hospitals will focus on over here ok so as you all as Jon shared previously specialty drugs present unique challenges because they often have unpredictable demand are high in cost and require special storage conditions now these unique challenges limit the inventory quantities the facilities typically keep on hand and as a result in times of emergencies facilities may not carry enough to treat that patient so consignment is attractive to providers in two ways first and foremost it helps elevate the level of patient care by providing immediate on-site access to life-saving specialty drugs providers are with consignment are no longer restricting stocking quantities because they are no longer bound financially so this allows them to properly prepare for emergencies second is obviously the financial benefits associated with consignment so by converting to a consignment program providers realize inventory carrying cost savings now therefore by transferring the financial burden to cardenal that will allow the provider to utilize those funds for other pharmacy initiatives initiatives like possibly investing in a and much-needed equipment or a new refrigeration unit or maybe it's the addition of a new full-time employee another value of consignment is that it eliminates the product obsolescence or product updating so you know by by eliminating that and transferring that responsibility to Cardinal rotation is initiated rotation of that inventory is initiated and managed by the Cardinal consignment team we we will also practically send you new products if the products on your shelf are coming up for expiration in addition recall products are managing in the same way so you will receive proactive alerts for those recalled products and the rotation of that inventory will also be managed by the Cardinal team so you know products products will be invoiced ing to your established reconciliation schedules and if a customer is scheduled for a monthly reconciliation that customer is also benefitting from the additional AR terms the days of AR associated with whatever term limits they may have negotiated with the distributor in addition you know our consignment platforms offer automatic reorders that will occur based on your account settings further minimizing time spent placing orders and freeing up at that time to manage patients so you know we're talking about you know a cloud-based platform really it's critical to ensure that consigned inventory is managed efficiently and you know consigned inventory to include 340b products can be tracked and traced using unique serial identification numbers within the cloud-based platform now this also allows Health Systems to gain real-time visibility into inventory levels from anywhere and at anytime so you know additionally if there are multiple facilities within a network contained products can be transferred within the network and that will further optimize product movements and limit the need for emergency orders so you're also saving money on any emergency by limiting those emergency orders and you know by simply adding consign inventory to the cloud-based platform we you know we have several ways that you can do that you use do that using a barcode scanner handheld barcode scanner and use that using a mobile app which basically the access is the camera on the either your phone or your eye or tablet and that is used to scan the product in a scan the product out or you know autum automatically using the rfid cabinet so basically this allows you to view your inventory anywhere at any time so additionally you know a cloud-based platform coupled with serialization techniques support DSD SI guidelines and product integrity initiatives further elevating the level of patient care through a secure supply chain so you know there are many ways to pursue a consignment model and we feel that a solution with RFID automation is the most efficient way to address the challenges presented by specialty drugs that's kind of let's jump into that into the RFID cabinetry question so you know as John mentioned earlier during his presentation improving efficiency is key in the area focus in the pharmacy and RFID can help with those optimization efforts RFID cabinetry offers you know there's no need for inventory managing from a manual perspective and that is not only does it eliminate the manual aspect of County but it also eliminates accounting errors and you know RFID automation also allows pharmacy staff to focus more on that patient care getting away from of physically monitoring that inventory and giving them more time to focus on the patient it also best of all actually it you know product information for the products that are stored within the RFID cabinet live in that cloud-based platform and are readily accessible now products stored in the RFID cabinet are also modern monitored 24 hours a day seven days a week and you you will see proactive alerts for those temperature shifts this gives you high visibility into into that inventory and allows you to further control and and I have that and be and have that product integrity aspect of it now are the cabinets are also secure so it gives the pharmacy leadership the ability to control who can access those high-cost specialty medications and you know last but not least you just think about all the time you and your staff can say if you don't have to count that inventory manually so let's talk about a common misconception regarding RFID the reality is the use of RFID in pharmacy is gaining traction because it's simple and it automates processes now here's how it work we have it we have it mapped out here you know products arrive pree tagged with this rfid enabled chip that contains all the pertinent information associated with that product like lot numbers expiration dates and that serial number that's unique to that product you basically simply open the door and using the access badge and once you either add or remove the product and close the door when you do that the scanning process is initiated the unit will complete a scan of the inventory of the all the inventory in that refrigerator and based on what you add or remove the inventory levels will be automatically updated in Cod based platform if app are level if you fall below your par level or that minimum an automatic reorder will occur for you so RFID has proven results in the healthcare industry such as significantly increasing Hospital workflow efficiencies by as much as fifty two percent it's been reported by some RFID enablers out there additionally with RFID technology health systems experienced a reduction in shrinkage and write-offs due to accurate visibility to that inventory and the end the round-the-clock temperature controls and as mentioned before by eliminating those manual steps in process these pharmacists have more time to focus on the patient now an additional benefit that we'll cover here as well we found with a with an RFID system when it's coupled with the cloud-based platform is that pharmacists no longer have to go physically check the product to get the assay size of that product or the lot number that information is readily available to them through the cloud-based portal on their desktop or mobile app they can do it right from from their workstation in the pharmacy now this slide really is you know what better way to validate the value of an RFID consignment program that to share a customer success story and you know one of the many health systems we we are proud to serve and I have adopted RF if you can is BJC HealthCare now BJC implemented the program because they were having difficulty in managing proper inventory levels product out dates and we're looking for a solution to help solve those problems and optimize the management of the high-cost specialty drugs so bjz implemented consignment across 15 facilities in their system nearly half of those facilities are using rfid enabled cabinetry with the remaining sites using the cloud-based system using 2d barcode symbology in a hybrid fashion so through a you know basically BJC through their analysis of the consignment program improved efficiencies realizing labor savings costs they also found decreased waste due to product obsolescence they ensure proper inventory levels and lower their inventory carrying cost so as a result BJC experienced a 5% cost avoidance for their expired products and really the success of this program not only is all the financial benefits with the with the consignment but yeah the flexibility in the program that's being used in a hybrid fashion with rfid and cloud-based and hospitals using one unique platform to manage the entire inventory and just you can't forget that you have a consignment team backing up this platform or this program that's responsive and knowledgeable so you know we've talked about you know you know the unique inventory challenges of specialty pharmaceuticals and shared how consignment may be a solution to help you with that budget control so you know we thought we'd put together a list of questions to help you determine if consignment and really specifically if an rfid enabled program is right for your facility so you know the first question is you know what is the you know total cost of managing your inventory or how much time does your buyer spend counting manually logging lot numbers and usage and reordering you know typically you will term this as a you know time and motion most and efficiencies in your four-year employees in the pharmacy does your pharmacy struggle balancing too much versus too little inventory your managing budgets that may force you to limit the amount of drug you keep on the shelf if you keep too much you're affected if you keep too little you're at risk of not having enough to treat a patient in need not having enough also many leads for the need for costly emergency shipments and/or transferring the patient to another facility definitely a challenging situation of being for sure additionally how much scrap is generated through your expired product think about the 5% savings realized by BJC all right you know your your expiration cost may be higher we've heard from some facilities that if expiration is going to be as high as 10% and then in addition do you have the right temperature controls in place for specialty pharmaceuticals and how much of your budget is tied into inventory what can your inventory carrying cost be your savings could be so you know and also could you benefit from increased visibility of your of your pharmacies inventory from anywhere using the web friendly cloud-based platform or mobile app just you know reminds me of the example I shared earlier regarding the time that can be saved by a by a pharmacist when they don't have to get up to go to the refrigerator to pull the product to see the assay size and a lot number so really balancing the hospital's bottom line while delivering quality patient care can seem like an overwhelming task but there's one area of the organization that's well positioned to help identify cost savings opportunities and boost overall revenue and improve patient outcomes and it's the pharmacy so we'd like to continue to engage you and discuss consignment and you know following this webinar you will receive a 10 second survey please let us know if you'd like to be contacted by our team additionally we're going to be at a sh p in december and will be hosting one-on-one demos of our rfid enabled cabinet program so if you indicate that you'd like to receive a personalized demo or one-on-one on the survey please indicate that or feel free to contact us directly via email and Mackenzie I'll hand it over to you thank you such a fantastic presentation now we will go ahead and begin today's question and answer session please submit any questions you have by typing them into your control panel in the space labeled enter a question for staff and clicking sent will try to get through as many questions as we have time for and it looks like a lot of great questions are already rolling in John Wayne and I have you take the first question which is what is the biggest barrier you predict that will halt l-system specialty pharmacy growth Oh question in the Economist model because the work we did predictability you know in the conversations that we have with you know pharmacies all around country one of the big challenges is simply that there the predictability of what's coming to market the inability to be able to predict for budget costs and those sorts of things and of course you know those increasing cost issues around reimbursement all of these things are key the growth and viability of specialty pharmacy as these new products continue to get introduced into the market to address those I think of them as those small patient population with really tough rare disease states cost and availability and an underscore the word access I think at least in my mind through conversations that we've had will continue to challenge what we have in place retirement infrastructure is I think great thank you so much for sharing your thoughts on that John the next question the next question is what is the pricing structure for consigned products in James why don't you take that one sure thanks that's that's a great question and it's it's it's typical it's typically the first question that's answered that me or that's asked of us and you know often you know our customers are trying to figure out how consigning products fit within their budget and you know that's always associated with what's the pricing look like so really the pricing structure for consignment differs for each customer and you know there are many factors that go into it the first one you know you obviously will be usage how many products are you considering for consignment is there interest in an RFID delivery system and of course you know any GPO contracts that may prevail so you know we will work with each customer individually to create a pricing structure that best fits them great thank you for lab rating on that another audience member wants to know can consignment be applied to 340b products and James let me have you take that one as well okay thanks the answer is yes and really I mean our program provides for 340b split billing management for eligible products and in you know in fact we were the first distributed to develop an approved process for managing 340b consigned inventory with apexis we understood it was a very highly sensitive product group and we needed to properly account for that and that we worked with apexis to come up with an accrual approved process perfect thank you so much shame it looks like the next question is for you as well what types of products are on consignment okay thank you really I mean the core products or the common products on our consignment program are plasma derived products and you know products such as anteye hemophiliac factors you know other products are you know snakebite antivenoms reversal agents and other limited agents now we are currently working on on expanding our portfolio to include oncology and other limited distribution drugs that are that can be managed in an ambient setting using our you know our cloud-based platform or our RFID solution perfect I think that's helpful for the audience so now the next question is does consignment work between inpatient and outpatient pharmacies do you want to take that one James yep I'll take it sure so you know it does and you know basically if the inpatient outpatient pharmacies reside in the same facility you can transfer or relocate products within the facility or network using a cloud-based platform called rx ID and you know we we actually we have a customer that has an RFID unit in the main pharmacy and another unit in the o.r pharmacy and products are routinely moved between RFID cabinets and the inventory is managed by the our cloud-based system Ark City in real-time so this can also be done on the website or through our rx ID mobile app perfect thank you so much so it looks like we have time for one more question and John let me turn to you for this one how do I sell the value of consignment to my VP of pharmacy well let's think about it this way first if you have to really understand present state what consignment can do to you today all of those talking points that James went through on the sides that he presented give a real good indication that there there was quite a value proposition that Shores up consignment and the implementation of consignment in us today and elsewhere non-acute world now the interesting thing is that there are financial considerations operational considerations on the financial side just take as an example you get one time inventory savings and that's important when you're talking about expansion of products and product portfolios are going to these different systems sure you know consignment has been centered around you know plasma derivatives as James mentioned you know most specifically around coagulation factors that sort of thing but when we look at where consignment can take us and we look at those one time savings and we look at the expansion of the product portfolio it gets pretty exciting you know in the world of venting in plastics and when we start to think about products that could exist in that ambient setting that non refrigeration is setting as James mentioned that really gets interesting to if you're interested in you know track and trace and of course that's a lot of hype you know today I'm on track and trace and the necessity and the need for that if you're looking to serialize down to the lowest lot number and again as was pointed out in the presentation if you're looking to avoid obsolescence and and from an operational point of view to remove a lot of those in-house funding activities I think I think consignment could be for you you know so I think you have to take a look at your own environment you have to take a look at all of these different you know specific things that we've talked about and we can help you with that we can help you with doing you know insight assessment and more than pleased to do that wonderful well that is all the time that we have left for today I want to thank James John and Cardinal house for their excellent presentation and to our audience for participating today enjoy the rest of your day and we look forward to having you join us for future webinars