There is no doubt residents in skilled nursing and assisted living facilities are using more medications and taking them more frequently than patients in community and other traditional hospitals. The challenges associated with this situation ripple through facility administration, billing and reimbursement, professional staffing and drug sourcing. This represents an equally daunting set of challenges for the alternate site pharmacies supporting these residents and facilities.
According to 2010's Healthcare Spending and Medicare Program Data Book, long-term care pharmacies represent just 2.6% of all pharmacies but account for 9.5% of prescriptions and 11% of gross spending on medications. And data from the National Nursing Home Survey of 2004 confirmed that almost 50 percent of residents in a skilled nursing facility receive nine or more medications, and almost 90% receive at least five medications.
We hear a common refrain from the pharmacists who work with these types of facilities and residents, and it typically sounds like “help!” They simply reach a moment where the increasing volume of medications and complexity of managing them require an improvement in business processes, drug sourcing and tracking, administration, payment and reimbursement.
McKesson is working with alternate site pharmacies to help them streamline the ordering and delivery of medications, and improve the way they track, pay and get reimbursed for them. This contributes to improved financial performance, which enables the pharmacy to better serve the long-term care facility.
Our team developed a portfolio of solutions for alternate site pharmacies in concert with facility administrators and pharmacists. For example, one of the top issues facing this industry is financial pressure, especially in light of ongoing reimbursement changes. In response, we developed a generics drug purchasing solution specifically designed for alternate site pharmacies. This program helps streamline reimbursement and regularly returns significant savings that the pharmacy can pass along to the facilities they serve.
Changing regulations are also challenging for alternate site pharmacies – perhaps more so than in any other healthcare setting. The federal government mandates rigorous standards for medication management in skilled nursing facilities, and the increased regulatory load often triggers increased costs as well. McKesson is helping pharmacists and long-term care facility administrators stay on top of the regulatory changes so they can remain focused on patient care, drive operational efficiency and improve financial performance.
McKesson is continuing to dedicate staff and resources to support skilled nursing, assisted living, specialty and home infusion programs. We're offering services and best practices-based consulting, proven technologies and software solutions, and a range of process-driven support for sourcing, administration, management, tracking, billing and reimbursement. As a result, the alternate site pharmacies we're honored to serve are better able to support LTC facilities and ultimately, the residents and families they serve.
Pam Burch is the vice president of McKesson Alternative Site Pharmacy. Email alternatesite@mckesson.com or call 800.571.2889 to learn more.