Maximizing Profit Potential for PBM
Industry
Managed Care/ PBM
Problem
The client provides a supplemental PBM program for patients to lower their out of pocket costs. The client wanted to improve generic purchasing via different wholesalers to lower their cost of goods. They also wished to review their current medication list in order to identify both savings opportunities and areas for improved inventory management.
PHSL Solutions
PHSI completed a detailed analysis of wholesaler prices on the identified drug products using client provided information. PHSI also reviewed the pharmacy’s drug list and inventory. By readjusting minimum and maximum quantities of medications available to be ordered, both on hand inventory and out-of-stock situations improved. This minimized the on-hand quantity of stagnant products while increasing the average inventory turns per year.
Results
Utilizing the pricing analysis provided by PHSI, the client was able to optimize their purchasing efficiency when negotiating with wholesalers. The client also saw an increase in inventory turnover reflecting a growth in business performance. PHSI continues this service on an annual basis to further reduce costs allowing for both expansions in sales and financial profit.