How a Pharmacy Buyer Can Survive a Wholesaler Conversion

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How a Pharmacy Buyer Can Survive a Wholesaler
Conversion

• Carol Goularte, Sierra Nevada Memorial Hospital,
  Grass Valley, CA
• Allen Sutherland, St Joseph Hospital and Medical
  Center, Phoenix, AZ
• August 13, 2008

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Introduction

• Good morning, My name is Carol and I am not going
  to stand up here and bore you with a lot of
  slides that have a lot of words on them that you
  have to read and it gets really boring and make
  you wish you hadnt of come to the conference
  this year. After all, you have probably already
  sat through a lot of presentations already and it
  is early in the morning and you havent had
  enough coffee yet to get started and now you have
  to listen to me go on and on..no, Allen and I
  wouldnt want to do that to our peers!
• We are actually going to give you the most
  important first hand information you are ever
  going to need if you ever have to change your
  wholesaler. So, thanks for attending our
  presentation this morning.

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Who, What and Why an RFP?

• WHO was on RFP Team? Four Pharmacy Directors,
  Four Pharmacy Buyers (Allen and I were two of
  them), Four Corporate Supply Chain Management
  representatives(Two Pharmacy, One Financial and
  one Contract person)

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Who, What and Why an RFP?

• WHAT is an RFP? Request for Proposal (referred to
  as RFP) is an invitation for suppliers, often
  through a bidding process, to submit a proposal
  on a specific commodity or service. A bidding
  process is one of the best methods for leveraging
  a company's negotiating ability and purchasing
  power with suppliers.

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Who, What and Why an RFP?

• WHY do an RFP? Market had changed, we knew there
  was opportunity for savings for a large IDN
  (Hospital System) such as Catholic Healthcare
  West

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Now for the HOW

• Team developed a detailed RFP covering areas
• Service Levels
• Ordering System
• Deliveries
• Information Technology
• General Company Background
• Inventory
• Payment Terms/Discounts
• Retail Pharmacy Offerings
• Additional Services

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How continued

• Gathered and included CHW data, account
  locations, purchase history (spend), current
  delivery schedules, Average Daily Census,
  Hospital Bed Sizes, Retail and Clinic data,
  Current Payment Terms with RFP.
• Weighted questions prior to receiving responses.
• Reviewed responses for clarification, true yes or
  no responses
• Scored Responses

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How continued

• Met with each of three major wholesaler companies
  face to face for demos, clarifications to
  responses, asked questions
• Ranked without and then again with financials
• Financials done on corporate level.
• Team voted for final decision

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How continued

• Decision was sent to Executive Team for approval
• After approval, was brought to a Pharmacy Council
  for final approval
• Was announced to CHW System

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Conversion Planning Stage

• Notification of change to current wholesaler
• Notification to vendors, GPO, other departments
• Interference with other conversions
• Allow at least 3 months for inventory and
  contract loads at new wholesaler
• Hardware exchange if applicable
• Training at distribution center, tours, personal
  training at own pharmacy

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Change Can Be a Good Thing
Be willing to learn a new ordering system
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Training
Have a good time while learning
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Training
This is your day, make the most of it
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Learn the Wholesaler System
Learn how to customize screens How to generate
reports Understand information on blow out
screen How to build market share reports How to
run off contract compliance reports
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Reality Check
A conversion isnt a vacation, you must get
involved!
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Tour Your Local Warehouse
Find out how your products will be packaged, meet
the local warehouse personnel
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Tour
See the operations
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Tour
Dont be afraid to ask questions outside of the
box!
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Change Can Be a Good Thing - Preparation

• Bring your back up Buyer to the Training
• Ask for all manuals, references to
  functionality/reporting of ordering system
• CSOS Digital Certificate move if using a new
  computer
• Work closely with I.T. at your hospital,
• Correct version of Java, Syncing of Hand Held
  devices, Firewalls

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Buyer responsibility

• Work with your Accounts Payable get new remit
  tos in place, find out contract payment terms
• Train Materials Buyers / Dietary/Radiology
• Convert Ordering numbers on templates /
  Requisitions
• Change numbers in automated Dispensing

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Speaking of Buyer Responsibility and changes
I would now like to pass the baton to Allen
Sutherland
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Buyer responsibility

• Cabinets/CII Safes
• Price Catalog for CDM
• Ask for any account set up or billing for
  specialty drug companies.
• Convert Hospital ordering systems like Lawson
• Save all puchase history with current wholesaler
• Convert 340b monthly report

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Buyer Responsibility

• Work with local Drug company reps to insure
  inventory is brought in dont compromise market
  share
• Shelf Labeling To do or not to doyourself

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Buyer Responsibility

• Logistics on Deliveries
• Notify Pharmacy department of change
• Arrange for training of others in your department
• Set up own meeting at distribution center

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Make Yourself a Check List

• Implementation is only the beginning
• Obtain all contact information, cells phones,
  customer service, emergency and after hour
  orders.
• Get a copy of wholesaler emergency/disaster plan
• Put your standing order on file with new
  wholesaler

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Allow Extra Time
You will be on the phone more than normal
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Allow Extra Time
Its a new ordering system, learn how to read the
descriptions Labels look different too Not all
wholesalers are equal, some package in different
package sizes
You may have been getting a pack of 6 and now
they come as eaches.
Make sure if you have to buy a different package
that it will fit in your automated dispensing
cabinets.
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Allow Extra Time

• Make corrections to shelf labels as you go
• Rank your contracts often, it takes time to get
  all contracts loaded
• Learn how to read new invoices / confirmation
  orders.
• Scanning devices work differently
• Watch your inventory closely, wholesaler is still
  making allocation adjustments

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Watch Out For

• Run contract compliance reports to ensure best
  priced, contracted item, change shelf labels
• Build relationships with the people that can help
  you the most, customer service, local rep, local
  warehouse operations manager
• Watch for pricing
• Notify wholesaler for individual contracts

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Watch Out For

• Some generic products may change on you if you
  sign up for generic program
• Watch for auto sub programs
• If an item is not stocked, request with your
  usage
• Watch for packaging of oncology products,
  refrigerated, controlled substances

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And

• Notify Reverse Distribution (expired meds
  company) for credit or checks
• Make sure proper paperwork is given and accounts
  are set up including auxillary accounts
• Make sure you have access to all of your accounts
  online, learn about Interdepartment billing.
• Arrange for Levels of Permission online

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And dont forget to
Well, maybe not goodbye paper totally

• Get controlled substance signature process
• Set up for CSOS
• Check for EDI payment set up
• Ask about electronic signature approval

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Notifications

• Get on email lists
• Ask for backorder, recalls, shorts notifications
• Ask for a report showing payments on time after a
  few months
• Have bi monthly or monthly calls with wholesaler

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Items not in Inventory

• Find out about Drop ship process
• Set in place Backorder process
• Find out how to enter non wholesaler items into
  wholesaler catalog

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Dont Forget to

• Ask questions about your contract with the
  wholesaler
• Know your contract, at least what is important to
  you.
• Know what they are obligated to
• Most importantly report any issues right away
  Build a relationship with someone in customer
  service!
• Remember, the contracted delivery service
  represents their company

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Some Problems That May Occur with Delivery Service
Break off security camera with truck, take
evidence with you (maybe they didnt see it
happen?
Wear shorts that are falling off.
Wear a huge skull and crossbones belt buckle into
a hospital with dying people.yeah, thats a
great idea
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Some Problems That May Occur with Delivery Service
Leave delivery cart with your CII delivery in
hallway while using restroom.
Park anywhere but where they are supposed to park.
Its a Saturday, why cant I bring my girlfriend
or dog along?
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Some Problems That May Occur with Delivery Service
You have to chase down driver because he forgot
222 form. Hope you have fast runners in the
pharmacy!
Driver refuses to take back empty totes.
Wholesaler misplaced pick list
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Some Problems That May Occur with Delivery Service
Driver decides to deliver his route backwards
for the fun of it.
Road / Bridge closures delay deliveries
Truck was too full, so we left off half of your
order, that is ok, right?
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Some Problems That May Occur with Delivery Service
Language Barriers !
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When All Else Fails
Throughout all of the changes, stay positive!
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Questions
Carol Goularte Carol.Goularte_at_chw.edu Allen
Sutherland Allen.Sutherland_at_chw.edu