Historically, health systems have undervalued the pharmacy department, according to leaders at Danville, Pa.-based Geisinger and Louisville, Ky.-based Baptist Health.
When Baptist opened 100 years ago, a pharmacy was considered "an unnecessary expense," according to the system's COO, Patrick Falvey, PhD, DSc.
"The first [Baptist] hospital did not have a pharmacy," Dr. Falvey said. "Instead, twice a day, they had a young boy who would take a stack of prescriptions and ride a bike to [a local pharmacy] to bring back the pharmaceuticals."
The system has since expanded and invested in its pharmacy services, including a $40 million, 102,000-square-foot central pharmacy services center.
Michael Evans, RPh, chief pharmacy officer of Geisinger, told Becker's he has been tenacious on promoting financial, quality and access opportunities within pharmacy.
The pharma industry is complex with its numerous mediaries — manufacturers, group purchasing organizations, wholesalers and pharmacy benefit managers. These intricacies offer great financial opportunities for health systems, but some have not exploited them, according to Mr. Evans.
For example, about 40% of dispensing sites accredited as specialty pharmacies are owned by hospitals, physician practices and other healthcare providers, according to Drug Channels. As systems delve into retail concierge businesses, some pharmacy departments are expanding to feature lucrative specialty pharmacies and infusion services.
Geisinger jumped at the opportunity of specialty pharmacy about 20 years ago.
Aside from being ahead of that curve at the time, though, the department was six layers away from the CEO.
The legacy leadership structure is directors reporting to strategy executives, who report to COOs, who report to CEOs. Newer models in health systems have pharmacy directors reporting to COOs or chief medical officers, who then report to CEOs. Mr. Evans said leaders can pivot from legacy to newer models — and elevate their department — with self-advocacy.
"We in the pharmacy have been pretty humble in the work that we do, like getting the right medication to the right patient at the right time at the right dose," Mr. Evans said, adding that this work is often "taken for granted in the organization."
To raise pharmacy's profile within the organization, he recommends showing C-suite leaders the importance, value and financial opportunities within pharmacy. To build a strong case, he also suggests contacting health system pharmacy leaders who have successfully gained influence and asking them to help demonstrate the department's value.
Once the reporting structure changed at Geisinger and he began reporting to the system's CMO, "the rest of the doors just fell open after the alignment," Mr. Evans said.