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Think about the volume of data that comes into the pharmacy each day. Comprehensive data on patient information, medications, adherence barriers, patient outcomes, patient safety, pharmaceutical manufacturers, and compliance, to name a few. Now think about what would happen if you could harness the potential of that data and unlock the details hidden within. You’d have unprecedented insight into your pharmacy’s operations, and a seemingly magical ability to make smart, informed decisions.
Well, that capability is here in today’s data-driven world. It’s called “data-driven decision-making,” and it has the potential to help pharmacists better serve patients while improving workflow efficiency and boosting the bottom line across their healthcare services. Let’s delve into current pharmacy data trends and the many ways in which an informed decision-making process can have an impact.
Table of Contents
- What Is Pharmacy Data And Why Does It Matter?
- How Can Pharmacies Turn Data Into Actionable Insights?
- Can You Use Pharmacy Data To Improve Patient Safety And Outcomes?
- What Challenges Do Pharmacies Face With Data Management?
- What Metrics Should Pharmacies Track To Measure Success?
- How Can Technology Enhance Pharmacy Data Analysis?
- Data-Based Insights Are The Future Of Pharmacy
What Is Pharmacy Data And Why Does It Matter?
Pharmacists are no doubt familiar with the term “big data,” which Electronic Privacy Information Center (EPIC) describes as “the collection of large and complex data sets and the analysis of these data sets for relationships,” where “the quantity of data in these sets prevents traditional methods of analysis from being effective.”
Pharmacy data refers to the tremendous volume of health data and patient information that is collected each day. Every transaction, every medication that is prescribed and dispensed, insurance claim that is processed, immunization administered, inventory ordered, and patient that is counseled, generates data. When properly collected, prioritized, analyzed, and made accessible, pharmacy data enables critical services including personalized treatment plans, identification of adherence barriers, patient safety, inventory forecasting, business visibility, and sales projections.
Beyond pharmacy settings, data-driven insights have helped usher in a new era in health services, with innovations in just about every aspect of health management, patient services, and overall customer experience for pharmacy customers. Reporting by Harvard Online explains that “[b]ig data revolutionizes health care by enhancing research practices and learning as well as providing clearer insight into disease prevention, diagnosis, and treatment. Health organizations leverage big data to analyze patient information so they can identify frequently occurring health trends, predict disease outbreaks, and develop treatment plans that improve patient outcomes and population health.”
Data has unlocked so many breakthroughs and improvements in patient care that a failure to take advantage is truly a missed opportunity. For pharmacies, this can include poor inventory planning, lack of insight into a patient’s well-being, failure to offer personalized treatment plans, underutilization of clinical services, and general waste and inefficiency.
With this understanding of the value of data-based decision-making, pharmacists need to evaluate how data is collected and utilized. This includes the need to prioritize a technology system, such as PrimeRx, that includes functionality for advanced data analytics. As the following discussion will make clear, not only does PrimeRx allow pharmacies to collect data, but the system also helps pharmacies understand what the data means, which in turn enables informed decision-making, improved patient outcomes, and reduced operational costs.
How Can Pharmacies Turn Data Into Actionable Insights?
With seemingly infinite volumes of data entering the pharmacy each day, a critical first step is to determine “data priorities” that will help in developing an overall plan aligned with business goals and areas of interest. Johns Hopkins ACG System notes that “pharmacy data provides critical information about patients and, when available, is important to include in health care data analyses” to “identify trends and patterns in medication use, assess the effect of a medication and evaluate health care utilization and costs.” Once a pharmacy identifies its priorities, data-based insights can drive efficiency across three core areas and strengthen the pharmacy’s role in the community.
Financial Performance and Planning
- Strategic Planning and Budgeting
- Reimbursements
- Operational Optimization and Efficiency
Patient Care & Clinical Services
- Medication Adherence
- CMS Star Ratings
- Consumer Insight
Inventory and Compliance Management
- Inventory Optimization
- Legal Compliance
- Disaster Preparation
Can You Use Pharmacy Data To Improve Patient Safety And Outcomes?
Personalized Care Plans and Risk Prevention
Data-based insights offer important opportunities to support pharmacists in better serving patients. This includes personalized care plans and targeted treatment management. According to Integrated Pharmacy Research and Practice, intelligence-driven pharmacy practice “allows pharmacists to access a holistic view of patient information, including genetic data, patient-reported outcomes, and historical health records,” enabling “personalized and patient-centered care” where “pharmacists can tailor medication regimens to individual characteristics and clinical attributes, increasing the likelihood of treatment success.”
Reducing Medication Errors
Pharmacy data has also been instrumental in helping to prevent medication errors. The National Institutes of Health (NIH) notes that by organizing and analyzing data, “relevant information is easily available to the prescriber, therefore minimizing the risk of a mistake.”
Electronic Medication Reconciliation
Electronic medication reconciliation uses technology to systematically compare patient medications with prescriber orders to identify omissions, duplications, and interactions. According to the National Institute for Health Care Reform (NIHCR), this process can prevent unintended medication discrepancies that affect up to 70 percent of hospital patients, with nearly a third having the potential to cause patient harm.
AI-Powered Safety Monitoring
Artificial intelligence has also become an effective tool in reducing errors. Pharmacy Times notes that AI “monitors patient data and identifies early signs of” adverse events, “allowing timely intervention and preventing serious consequences,” while machine learning enables “earlier identification and prevention of adverse drug reactions for certain patients.”
What Challenges Do Pharmacies Face With Data Management?
As helpful, even transformative, as data-based analysis certainly can be for pharmacies, it is not without its concerns. Pharmacies must navigate critical challenges around security, data quality, and staff readiness.
Security and Privacy Concerns
- Privacy concerns (HIPAA)
- Data security/encryption
Data Quality and Staff Readiness
- Data curation
- Staff training
How PrimeRx Addresses These Challenges
These are, of course, very real concerns that could dissuade a pharmacy from implementing a data-based strategy. However, functionality offered by PrimeRx addresses these challenges.
For one thing, PrimeRx provides a streamlined solution that ensures consistent, single-source information. As a comprehensive pharmacy management solution, PrimeRx ensures all data is managed via a centralized database system. With all data – patient records, inventory, operations, claims –linked within the same platform, a pharmacy is assured that data-based reports reflect an accurate overview of pharmacy activity.
Pharmacies also benefit from the PrimeRx Remote Backup Solution, which addresses security concerns. Data is seamlessly backed up on a regular basis and stored in a secure off-site data storage facility. In addition, a PrimeRx firewall provides an extra layer of security in protecting data from unauthorized intrusions.
What Metrics Should Pharmacies Track To Measure Success?
To achieve outcomes such as those listed above, a pharmacy will need to determine which data points to prioritize. Those key performance indicators (KPIs) will provide the pharmacy’s path forward in building a data-based operation.
But what exactly are KPIs? KPI.org describes them as “the critical, quantifiable measures of progress toward a desired result” that “help organizations determine if their efforts are making an impact, allocate resources effectively, and focus improvements where they matter most.”
For pharmacies, KPIs should align with functions an owner wishes to track. While a pharmacy will want to customize its own KPI priorities.
Financial Metrics
- Gross profit margin
- Average prescription value
- Operating expenses as a percentage of revenue
- Return on investment (ROI)
- Reimbursement rates
- Revenue per employee
- Revenue per square foot
Inventory Management Metrics
- Inventory turn rate
- Inventory valuation
Reimbursement Metrics
- Reimbursement rates
- Identification of reimbursement rates by plan
Operational Efficiency Metrics
- Prescription fill rate
- Employee turnover rate
- Employee productivity rate
- Prescription accuracy rate
Patient Engagement Metrics
- Number of returning patients per month
- Patient breakdown by plan/payer
- Number of new patients per month
- Adherence rate for chronic medications
- Patient enrollment in medication synchronization programs
- Number and usage rates of clinical services offered
How Can Technology Enhance Pharmacy Data Analysis?
As pharmacies look to technology to unlock their data, the PrimeRx management system is a logical choice. As a long-standing industry leader, PrimeRx offers extensive functionality, contained within a single platform, that helps pharmacists optimize the value of their data across four key areas.
Customized KPIs for Your Pharmacy’s Priorities
Pharmacists can determine which KPIs they wish to track and set up a customized tracking and reporting schedule. The list of potential KPIs is seemingly limitless, with pharmacists able to prioritize data related to business performance, patient adherence, and plan/payer activity, among many other areas.
Real-Time Dashboard Access
Pharmacists can have “at a glance” access to KPI activity via a customized dashboard that is continually available.
Comprehensive Reporting Capabilities
Pharmacists can request reports on a wide range of topics, ranging from business summaries to patient medication adherence reports to plan/payer performance, and just about every other metric a pharmacy may wish to track.
Cost Optimization with PrimeRx MARKET
Pharmacies can manage medication costs through the PrimeRx MARKET online platform, which enables real-time price comparisons. PrimeRx MARKET connects pharmacies with dozens of wholesalers and suppliers and allows pharmacies to purchase required medications at the best possible price.
Data-Based Insights Are The Future Of Pharmacy
Today’s busy pharmacy never stops producing data. From point-of-sale transactions to inventory orders, claims adjudication, payer contracts, productivity reports, and operational expenses, the data keeps on coming. The key, though, is having the tools to wade through that information, separate it into useful categories, and provide meaningful analysis. PrimeRx provides those tools in a user-friendly, customizable format.
With PrimeRx, pharmacies can easily create a data-based operation, with tremendous potential for improved efficiency and revenue.
Unlock the Power of Your Pharmacy Data!
FAQs
Can pharmacy data improve patient adherence?
Yes, analyzing patterns helps identify and address adherence barriers.
Is pharmacy data secure with software platforms like PrimeRx?
Yes, PrimeRx ensures HIPAA-compliant storage and access.
Does pharmacy data help pharmacies increase revenue?
Yes, insights reveal trends, reduce waste, and optimize inventory.
Can pharmacies share data with healthcare providers?
Yes, sharing data improves patient outcomes and integrated care.
Is analyzing pharmacy data complicated for small pharmacies?
Not with the right tools. PrimeRx simplifies analysis and reporting.