Employer Health Benefits, Worksite Clinic

RxStewardship: R is for Results

Week 8 – R X S T E W A R D S H I P

Moving Toward STRATEGIC RX STEWARDSHIP

R is for Results

Seeing or hearing advertisements proclaiming results is commonplace for most of us. Promotions frequently tout the biggest sale of the season, unsurpassed warranties or life-altering results. My new personal favorite is an ad proclaiming that a particular product is guaranteed to last a full 24 hours but quickly reminds consumers that they need to use said product twice daily!

This bravado has carried over into the health care industry and more specifically pharmacy services. Claims of being the one and only provider of certain services, decrees of maximum cost savings and promises of full transparency are becoming the norm. And while this may reflect an industry that continues to evolve product and service delivery, it does beg the question – outside of all of the hype – do you understand the result of the investment your organization is making in your pharmacy benefit program?

Truly understanding results requires a working knowledge of at least foundational terms and concepts within the industry. A few examples include average wholesale price (AWP), average cost index (ACI) and maximum allowable cost (MAC). Even terms that are believed to be simple and commonly understood may need to be double-checked as working definitions have evolved over the past few years. Beyond simply understanding terms, do you understand how fees, cost sharing and rebates are actually calculated? If your organization is told it is receiving 100% of earned rebates, is there clarity for how that is measured? Is there visibility into the impact on overall costs? From a clinical perspective, is there agreement on which metrics are being measured? Perhaps most importantly, is there a quantifiable positive impact on real life health outcomes?

Receiving results even as independent points of data can be a step forward in the quest to craft a high value benefit plan. However, if that information is disconnected, not placed into the proper context or distracts attention from the overall picture, the information may not be as helpful as perceived. As an example, when exploring the use of migraine medications, a report may show high generic, formulary and medication adherence percentages. At first glance, all three of those metrics are positive. However, they may obscure insight into members who are using migraine rescue medications week after week or month after month without using any medications for preventing the migraine in the first place. If this is the case, not only are those members not receiving the best care or outcomes, it is likely that absenteeism, productivity and overall benefit dollars have been negatively impacted – clearly not the desired result.

As you contemplate designing your organization’s plan to measure data and gain better insight into the true outcome impact of those metrics, you will likely find value in incorporating a few Lean Six Sigma (LSS) concepts into your planning and execution. The use of A3’s and smart goals can help create a road map for program implementation, data collection and impact measurement. Having these quality improvement tools in place can be of tremendous benefit for organizations seeking to maximize the value of their investment.

Northwind is committed to helping your organization achieve its outcomes and impact goals. We can provide LSS Black Belt support throughout your journey and our advanced analytics, data reporting and clinical blueprints are all designed to help you gain insight into your data, influence trends and behavior and impact health outcomes for those you serve.

Next week’s blog is entitled D for Diabetes and will explore the positive financial and clinical outcomes achieved as the result of implementation of a clinical blueprint as part of a collaborative effort between an employer, a health center provider and Northwind. We are very excited to share these results with you. In the interim, if you would like to explore ways to help your organization achieve the results you desire – true measurable and impactful outcomes, please reach out. Let’s have a conversation!

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Podcast: Northwind’s Member Focused Approach

Phillip Berry | Sep 25th, 2024
Click here to listen to Katherine Lurke, PharmD and Steve Zetzl, PharmD discuss Northwind’s member focused approach to pharmacy benefit management. Unlike traditional PBM models like you are used to hearing about, Northwind’s PSA (Phamacy Administration Services) prioritizes continuous patient engagement. Steve and Katherine break down how their team works to ensure that once medications are in … more »

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We’re All in the Business of Healthcare

Phillip Berry | Aug 14th, 2024
Employers and unions have begun to realize that they are very much in the business of healthcare and that they are the “payer.” The move toward self-funding continues to build momentum as costs increase and employers discover that the healthcare universe revolves around a few massive payers. American healthcare has become a $4.5 trillion galaxy … more »

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The PBM Conflagration Marks the Beginning of Healthcare’s Center-of-Gravity Shift

Phillip Berry | Jul 31st, 2024
Waiting for my turn to present at recent health system executive conference, I noticed that presentations before mine spent a significant amount of time lamenting “payers” and “reimbursements.” Strategies and solutions to address these challenges centered on cutting costs, pooling resources to increase negotiating leverage, lobbying, and aligning with larger health systems to bolster positioning. … more »

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