Health Systems Pharmacy Executive Alliance and McKesson Release Landmark High Performance Pharmacy Study, Empowering Health Systems Pharmacies to Improve Clinical Outcomes and Financial Performance

Study Outlines Core Best Practices That Define Hospital Pharmacy High Performance

ANAHEIM, CA — ASHP 2006 Midyear Clinical Meeting and Exhibition — December 4, 2006 —
The Health Systems Pharmacy Executive Alliance, a collaboration of well-known leaders dedicated to advancing the practice of hospital pharmacy, and McKesson Corporation, a Fortune 16 healthcare services and information technology company, today released a landmark study that identifies the core best practices that define high performance within a health system pharmacy. The High Performance Pharmacy study categorizes these best practices so that health system executives and pharmacy leaders can easily adopt them to improve patient safety, clinical quality, and financial performance. Early adopters of the High Performance Pharmacy model such as HCA, Inc.; Loma Linda University Medical Center; and Southwest Washington Medical Center are already realizing significant clinical and financial gains, including fewer medication errors and improved inventory and financial management.

The Health Systems Pharmacy Executive Alliance and McKesson also announced today the launch of the High Performance Pharmacy Web site, which provides health system executives and pharmacy leaders with easy access to the comprehensive information contained in the study, as well as case examples of hospital pharmacies that are putting the principles of High Performance Pharmacy to work.

“Since we first came together eight years ago, the Health Systems Pharmacy Executive Alliance has remained committed to the advancement and elevation of hospital pharmacy within health systems,” said Thomas Thielke, RPh, FASHP, Chairman of the Health Systems Pharmacy Executive Alliance, ASHP Past President, and VP of Professional and Support Services at the University of Wisconsin Health. “As a result, the alliance is thrilled to release this study in collaboration with McKesson, helping to make High Performance Pharmacy an obtainable reality for all types of health systems. Through its partnership in bringing this study to fruition, McKesson is demonstrating in a very powerful way its understanding of and commitment to the health systems industry.”

“A High Performance Pharmacy is one that demonstrates the highest levels of patient safety, clinical quality, and financial performance and sets the standard for health system success,” said Chris Borr, Senior Director of Health Systems Marketing, McKesson. “Through the High Performance Pharmacy study, McKesson is excited to provide health systems pharmacies with a breakthrough set of clear, concrete best practices that can be used as a roadmap for transforming their pharmacies into high-performing and financially valuable assets within their health systems.”

Setting the Standard for High Performance

Today’s health systems leaders recognize that the performance of the pharmacy department can be a vital element in the success of a health system and the health of its patients. The high cost of medications and drug-related technology, combined with the potential impact of medications and pharmacy services on patient-care outcomes and patient safety, make it imperative that pharmacy departments perform at the highest level possible.

However, the characteristics that comprise high performance in health systems pharmacy have historically not been well defined or agreed upon. Through the High Performance Pharmacy study, the Health Systems Pharmacy Executive Alliance and McKesson are providing a comprehensive set of best practices that health systems pharmacies can adopt to achieve high performance. These best practices form what the study identifies as the “8 Dimensions of High Performance.”

The Path to Achieving Health Systems Pharmacy High Performance

The following eight dimensions categorize the programs, services, and practices at which a health system pharmacy must excel to deliver the best clinical outcomes and financial results:

1. Leadership — Defines the skills required to effectively lead a pharmacy to achieve better outcomes for the entire health system.
2. Medication preparation and delivery — Focuses on the safe, efficient delivery of all medications.
3. Patient care services — Defines the elements of patient care services that enable health systems pharmacies to improve patient outcomes and deliver significant financial benefits to the entire health system.
4. Medication safety — Outlines the policies, procedures, and systems that ensure safe delivery of medication therapy.
5. Medication use policy — Identifies best practices for complying with various regulatory and statutory requirements, instilling a culture of performance and preparing for an emergency.
6. Financial performance — Outlines the key programs, systems, and processes that pharmacies can implement to maximize their financial contribution to the health systems they serve.
7. Human resource management — Identifies best practices for managing pharmacy staff, as well as recruiting new staff members.
8. Education — Outlines best practices for fostering knowledge sharing between pharmacy staff members, as well as implementing training programs for up-and-coming pharmacists.

Building on the 8 Dimensions of High Performance, the High Performance Pharmacy study also delivers the industry’s first set of approximately 70 financial and clinical performance indicators that health system pharmacies can easily follow to gauge their progress in achieving high performance for each of the eight dimensions. These indicators, which the study terms “elements,” represent structures, policies, procedures, activities, and practices that enable health systems pharmacies to determine the anticipated level of effort required to improve their performance in a particular dimension, as well as the estimated financial return they can expect. For example, a health system that is seeking to achieve high performance in the medication preparation and delivery dimension can do so by following the 15 performance elements identified for that area, including unit-dose distribution, dose standardization, safe medication storage, management of automated dispensing cabinets, reconciliation of controlled substance waste, and more. Published literature is referenced to support each of the approximately 70 elements identified.

High Performance Pharmacy in Action

Several health systems pharmacies across the country are already implementing many of the best practices outlined in the High Performance Pharmacy study, and realizing significant results.

Southwest Washington Medical Center Improves Inventory Management and Reduces Medication Errors
By adopting best practices outlined in the High Performance Pharmacy study, Southwest Washington Medical Center (SWMC), a full-service, not-for-profit medical center, has been able to significantly improve inventory management, resulting in more than $70,000 in savings per inventory turn. SWMC has also achieved an average rate of 53 prevented medication errors per 1,000 patient days. Said Joe Ness, VP, Ancillary and Support Services, SWMC, “The High Performance Pharmacy approach is about never accepting the status quo. It’s about continually looking at whether you have the right mix of people, processes, and technologies in place to provide patients with the highest quality care.”

Loma Linda Reduces Medication Errors through Smart Infusion Pump Implementation
Loma Linda University Medical Center (LLUMC) has also benefited from adopting the High Performance Pharmacy approach, achieving a 75% reduction in Heparin-related dosing errors through a widespread implementation of smart infusion pumps. Said Paul Norris, Executive Director of Pharmacy Services and Materials Management, LLUMC, “The High Performance Pharmacy initiative gives us a benchmark to measure where we are, and where we need to be. Improving medication safety is just the beginning for us — the High Performance Pharmacy approach gives us a roadmap to achieve the rest.”

For more information on the High Performance Pharmacy study, please visit www.HighPerformancePharmacy.com

About the Health Systems Pharmacy Executive Alliance
The Health Systems Pharmacy Executive Alliance is a collaboration of well-known leaders who are dedicated to advancing hospital pharmacy’s contributions to patient safety, clinical quality, and financial performance through increased effectiveness and efficiencies. Active since 1998, the Executive Alliance maintains a strong and prestigious membership that has included ASHP past presidents and other pharmacy organization officers. The Executive Alliance members include McKesson and non-McKesson customers and represent all parts of the health system continuum, from large, internationally known academic centers to smaller, community-based hospitals. The Alliance operates independently from McKesson and takes responsibility for the public positions and publications it issues.

About McKesson
McKesson Corporation is a Fortune 16 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 173-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare, and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients.

McKesson Pharmaceutical, a major business unit of McKesson Corporation, supplies branded, generic, and over-the-counter pharmaceuticals to more than 40,000 customers spanning retail chains, independent retail pharmacies, and institutional providers such as hospitals, health systems, and long-term care providers.