Subject: Introduction of New Benchmark Initiative for 2007-Cost of Pharmaceuticals
Adding to our new Pain/Nausea Vomiting outcome benchmarking for 2007, as well as our other clinical benchmarks, I have developed a benchmark for comparing acquisition costs of high volume drugs/ high cost drugs to our member facilities.The framework for this new part of your routine reports is attached below. It will be expanded as I travel this next quarter from facility to facility.Participation is voluntary.
All stakeholders (leadership, ownership, payers, and patients) call on us to be prudent purchasers and can call for evidence that we track our costs in comparison to “community norms”. Drivers of pricing include patient volume (thus cases/year is noted) and participation in contracts.We will pass no judgment on your pharmaceutical providers/ contractors, but will enable you to demonstrate that you do indeed monitor pricing and are doing well, or, conversely, there are reasons to review your present sources.
I will be discussing this with you at our next meeting. From the beginning, I identified clinical, regulatory and med safety goals.Prudent fiscal management through benchmarking is still another.
“If you’re paying $3.00 and the rest of the practice sites are paying $1.00, I should make you aware “