Can someone explain to me why some hospitals, mostly rural, contract with pharmacy management companies and pay them crazy amounts of money per year to provide pharmacists(which as we know are falling over each other for jobs) and some type of management. Its seems like they prey on the rural hospitals where the board of directors are the good old boys club that inherited money and are seemingly important in the community but yet have no idea what is going on in hospital management and practice . With so many rural hospitals going under or being taken over by larger hospitals perhaps the money wasted on these contracts could be better spent on keeping the doors open. Wondered if these contract companies are starting to lose buisness and fade away. Seems like a terrible waste of money for hospitals. Anyone ever work for any of these and have comments on them?
Can someone explain to me why.....
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I work for one of these companies and have pondered this myself. The hospital renewed our 3-year contract in 2013. In addition, our hospital has outsourced more departments over time, most recently nutrition services, physical therapy, and housekeeping. Our hospitalists and specialists are also outsourced. I believe we provide excellent service, but it does come with a cost. Now hospital administration is seeking a "strategic partnership" with one of a few big healthcare systems, one of which is a significant market competitor to my company. I agree with your sentiment on the hospital board of directors.
Running an inpatient pharmacy is not exactly easy and straightforward for the hospital administration so that’s why they hire outside help. Think of everything that goes into running a hospital pharmacy. You have billing, 340B, rules/regs, ordering, staffing, compliance, technology, training, inspections, etc. That’s why companies like Cardinal and CPS, among others, prosper in these smaller hospitals. Sure, you may get a competent director who can do all these things but then you’re back to square one if he/she decides to move on or retire. With those companies, you get an interim director right away until a more permanent placement.
Pharmacy is also one of the few departments that may generate revenue for the hospital (e.g. correct billing, 340B, cost control, infusion clinic, compounding contracts for different practices, and so on). Those administrators wouldn’t know where to begin and again, you’d need a good director with business acumen. Think about the consequences of hiring a complete dolt. After the probation period, the hospital is stuck with that hire. This becomes less of an issue when you can pick up the phone and say the director is not producing.
I agree with you that pharmacists are “falling over each other for jobs” but do you think most of them can effectively direct a pharmacy department?
Those companies are not perfect but they have their place.
Pharmacy is also one of the few departments that may generate revenue for the hospital (e.g. correct billing, 340B, cost control, infusion clinic, compounding contracts for different practices, and so on). Those administrators wouldn’t know where to begin and again, you’d need a good director with business acumen. Think about the consequences of hiring a complete dolt. After the probation period, the hospital is stuck with that hire. This becomes less of an issue when you can pick up the phone and say the director is not producing.
I agree with you that pharmacists are “falling over each other for jobs” but do you think most of them can effectively direct a pharmacy department?
Those companies are not perfect but they have their place.
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