Do’s, Don’ts, & How to Prepare

Identify

Steps and strategies to prepare the pharmacy for a GPO conversion

Outline

How and where to locate various tools that can be useful during the transition.

Define

The role of the Pharmacy Buyer

Explain

How a GPO conversion will impact departments outside of the pharmacy

Objectives

A GPO is an entity that helps health care providers (such as hospitals, ambulatory care facilities, nursing homes and home health agencies) realize savings and efficiencies by aggregating purchasing volume and using that leverage to negotiate discounts with manufacturers, distributors and other vendors.

Number of GPO’s?

Responsibilities or service?

GPO- Group Purchasing Organization

C

DEA and State

License

GPO Conversion

begins

WholesalerConversion

Update records of vendors and manufacture

Update purchasing to current contracts

Update WIN in ordering & inventory systems

Wholesaler accounts

Memorial Hospital Central-7Memorial Hospital North- 4Children’s- 1Out Patient Surgery Center -2Out Patient Retail Pharmacy -2Total = 16

GPO = 6 340B = 5WAC = 5

-At least 1 out of 6 accounts that didn’t have a contract loaded.-Some contracts not loaded at all-Some loaded sporadically-Ask for a contract load comparison report, Wholesaler

End of month summary with contract compliance

72% of purchases are on GPO contracts - (non 340b, WAC)

GPO on average save 10% to 15% off purchasing cost

Discovery

License-Copies of all facilities state and DEA license

LOP- LOCFrom GPO dated and signed by all parties. listing facilities; name, DEA, address

Contacts-RepresentativesVendorsWholesaler- ContractsGPO

-Template of facilities, license, name, address, account number etc. -email template-Organize

-Looking ahead-Who else will be affected, inventory automation, Pyxis, Epic, Cerner, Bedside barcoding

-sales representative-contract representative-notify of change & date-ask about LOP/LOC & contract specifics

Licensing and Facility Information

Memorial Hospital UCH1400 E Boulder StColorado Spgs, CO 80909DEA NumberWholesaler NameAccount 2136, 2334, 6579GPO and date of change

Memorial Hospital North UCH

Children’s Hospital

Memorial Outpatient Surgery, Dr…

Outpatient Pharmacy

• List all information for one DEA separate.

• Include all wholesaler account numbers associated with that DEA

• Complete address and name as it appears on license

• Date change is or has occurred

Template Examples

Email

Memorial Hospital and the affiliated hospitals changed GPO on April 1, 2013. I have attached the Letter of Commitment showing the date of conversion and entered into agreement between the GPO and all facilities listed. The DEA and state license for each facility are attached for your records. Each hospital and it’s information is also listed to include DEA and corresponding wholesaler account numbers. Please forward this information to your contracting department to see that the correct information has been updated as reflected.

• Attach copy of LOP/LOC

• Attach copy of DEA and State license

• Include licensing and facilities document

• Copy GPO and Wholesaler representative

• Document trail-Start an email folder

Template Examples

Communication-Check in with contacts notify that the Hospital GPO change has occurred.

Monitor-Wholesaler contract changes,Unload GPO1 load GPO2

Update-Weekly with GPO representative include Wholesaler as needed

-email correspondence- follow up & confirm required documents received- LOP or LOC needed?- meet to review if needed

- available reports and access-know how to read and understand-all accounts

- review contract loads- where additional work is

needed- suggested meetings

Know your contracts-who to contact

-Representatives-Central Supply/Contracting

-reports to run in Wholesaler

Why-Cost savings-Compliance

Types-LOC-LOP-Standard GPO-Individual-Tier level

Non GPO Contracts/Pricing-340b-WAC

• Primary responsibility for a GPO conversion is?

• Buyer• Wholesaler• GPO• Central Supply

• Prepare for road blocks and bumps along the way.

• Document with email

GPO Contracts

Informatics •Automation systems update

•Pyxis, Epic, Cerner•NDC, WIN, Cost, package size

Bar Code Scanning•Possible packaging if not UD•Bar code scan created

Hospital Personal•Billing department•Nursing

•Color or form change; vial to amp

Internal and External Departments

Follow upAny remaining updates

Monitor-For contract change. Current and new.

Credits/RebillsAudit for those that were loaded late.

-keep departments updated-changes made

-inconsistences among accounts- continue reporting

-date LOP was signed-Wholesaler credit report

Wholesaler

•Monitor updates to contracts

•Reporting availability

•Contract compliance

•Product availablity

GPO

•Monitor contract changes•Communication to Wholesaler

•Email updates, reports,

Conference calls

Continous Measures

Both are providing you a service that requires equal and continuous corroboration and communication to keep it successful.

C

““Buyer RoleBuyer Role””

Key HolderKey Holder

Wholesaler purchases

GPO updates email, mail,

representatives

1st line in Inventory changes

-Reflect of cost on drugs purchased-Increase in drug spend-availability of product

-GPO contractsfor compliance-consistency on all accounts-communication

-Communication to departments-changes in ordering system

Number of GPO’s

•600 organizations that participate in group purchasing.•30 of those are one that negotiate sizeable contracts similar to ours.

First GPO- 1909 Hospital Superintendents in New York considered a purchasing agent for laundry services

8 Largest GPO’s

Novation

Amerinet

Premier

MedAssets

Broadlane

Health Trust

Consorta

Child Health Corporation of

American

Answers

http://c.ymcdn.com/sites/www.supplychainassociation.org/resource/resmgr/research/gpo_primer.pdf

http://www.beckershospitalreview.com/hospital-management-administration/7-largest-group-purchasing-organizations-for-hospitals.html

2014 NPPA Conference

References