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Premier consultants help KY Baptist hospitals achieve pharmacy savings

Baptist Healthcare System (BHS) is one of the largest not-for-profit healthcare systems in Kentucky with five acute-care hospitals, more than 1,500 licensed beds, in four markets. Hospitals include Baptist Hospital East in Louisville, the system’s largest facility; Western Baptist Hospital in Paducah; Central Baptist Hospital in Lexington; Baptist Regional Medical Center in Corbin; and Baptist Hospital Northeast in La Grange. BHS manages Hardin Memorial Hospital in Elizabethtown. The system includes primary physician practices, urgent care, home health, occupational health and wellness/fitness centers.

Situation:

Pharmacy spend for Baptist Healthcare System (BHS) in Kentucky totaled more than $46 million, one of the system’s largest expenses. As such, it was worthwhile investing in a study to determine possible savings opportunities.

Solution:

BHS called Premier to conduct a study that would benchmark and compare drug selection, utilization and contracting patterns both within the system and with peer hospitals; to identify expense reduction opportunities resulting from price disparities, contract use or prescriptive practice; and to provide evidence-based clinical support to facilitate at least the initial implementation of identified opportunities.

Result:

Potential savings were identified in all major clinical specialties with the most significant savings opportunities in blood products ($462,000), anti-infective drugs ($221,900), contracting opportunities ($143,000) and cardiology ($142,000).
Premier assigned a relative risk/benefit value and found the following savings opportunities: easy, $158,462; moderately difficult, $272,040; and difficult (items that require a change in behavior), $952,689.

"This is absolutely something I would recommend that every hospital or system do. In fact, one of our pharmacists said it’s so useful that, ‘We should do it every year.’ It is a proven process.”

Alan McLaughlin, Director of Purchasing
Baptist Healthcare System

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