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Restructuring pharmacy services to reduce expenses without eliminating services.

C D Mahoney1

  • 1Pharmacy Services and Materials Management, Rhode Island Hospital, Providence 02903.

American Journal of Hospital Pharmacy
|March 1, 1990
PubMed
Summary
This summary is machine-generated.

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Pharmaceutical services were restructured using automation and downsizing to cut costs while enhancing patient care. This strategic plan improved efficiency and reduced expenses without compromising pharmaceutical services.

Area of Science:

  • Health Services Research
  • Pharmaceutical Sciences
  • Hospital Administration

Background:

  • High personnel costs and labor-intensive drug distribution systems impeded service upgrades in a teaching hospital's pharmacy department.
  • Decentralized pharmacy satellites and limited intravenous admixture services characterized the previous operational model.

Purpose of the Study:

  • To describe the restructuring of pharmaceutical services in a teaching institution to reduce expenses while maintaining or improving service quality.
  • To detail the implementation of a strategic plan focused on operational efficiency and cost reduction.

Main Methods:

  • Reorganization of the pharmacy department's structure, granting managers more autonomy.
  • Replacement of 12 small pharmacy satellites with two larger, more efficient units.

Related Experiment Videos

  • Implementation of an automated medication order entry system with bar-code capabilities, and increased automation in nutritional support and oncology services.
  • Installation of fax machines in critical-care and oncology units to expedite medication orders.

    • Main Results:

    • The department eliminated 17 positions but added 5 clinical pharmacist specialist and 6 technician group leader positions.
    • Significant cost reductions were achieved through controlled downsizing and process optimization.
    • Existing pharmaceutical services were improved and expanded.

    Conclusions:

    • Integrating automation technology with strategic downsizing and restructuring of drug distribution effectively reduced expenses.
    • The implemented changes demonstrate a successful model for enhancing pharmaceutical services in a hospital setting while managing costs.