Below is a graphic overview of ProxsysRx’s integrated approach to optimizing a health system’s pharmacy services, savings and revenue. In 340B support alone, we’ve generated over $500 million for the hospitals we serve — revenue those systems have used to positively impact the quality and scope of patient care they offer, in countless ways.
Why you should optimize, and not maximize, your 340B program prescription savings
Your 340B program should be both aggressive and conservative. In other words, you should aggressively pursue 340B savings for every eligible prescription that’s worth pursuing. An optimized 340B program generates net savings on every eligible prescription claimed.
Key Elements of an optimized 340B program
1) Proprietary 340B software with automated analytics
The ultimate objective of a 340B software system should be to enable your 340B team to make better decisions faster.
2) A dedicated, full-time 340B program team
You need at least one full-time, experienced 340B expert on your team. Human oversight is critical because software alone can’t reliably requalify missed prescriptions for 340B savings.
3) The proven ability to overcome 340B ESP / manufacturer restrictions
The good news is, you can overcome most restrictions. While the average 340B hospital’s revenues have decreased significantly since the 2020 advent of manufacturer restrictions, the 340B revenue of every hospital we serve has increased.
4) Prescribers who know and follow 340B best practices
In our experience, an incomplete understanding of the 340B program’s best practices is the most common reason prescribers don’t take full advantage of available prescription discounts for their patients. Which is why clearly-defined 340B prescribing policies are critical to optimizing your program.
5) TPAs aligned with your 340B program objectives
Not all TPAs are created equally — and few health systems managing their own 340B programs have the in-house resources to adequately evaluate their TPAs’ comparative strengths and weaknesses.
6) An optimized 340B contract pharmacy network
In all likelihood, your contract pharmacy network is not what it should be. The typical number of quality 340B contract pharmacies we’ve added to the networks of health systems we serve is five to ten. That said, quantity is far from the only key element of an optimized contract pharmacy network. Like TPAs, not all contract pharmacies are created equal. Far from it, in fact!
7) An onsite retail pharmacy active in your health system’s 340B program
A well-managed retail / outpatient pharmacy can, and should, generate significant revenue and profits for your health system. ProxsysRx currently owns or manages 22 in-house retail / outpatient pharmacies, and — on average — those pharmacies generate $750 to $1000 in net profit per bed, per month.
8) A robust Meds To Beds program
A well-managed bedside prescription delivery program can improve your 340B health system’s revenue by reducing costly readmissions. In one Mississippi-based 340B health system, ProxsysRx filled over 18,000 discharge prescriptions in just 12 months — during which time, pharmacy revenues increased 125% and readmissions decreased dramatically.
9) An onsite 340B specialty pharmacy
Onsite specialty pharmacies offer 340B hospitals a significant advantage in caring for the “sickest of the sick” patients they serve. Moreover, some covered entities generate as much as 600% in revenue from 340B specialty drugs as they do in traditional retail / outpatient pharmacy 340B prescriptions.
The benefit of a URAC-accredited 340B specialty pharmacy partner
ProxsysRx’s specialty pharmacy team has been contracted to build and manage on-campus 340B specialty pharmacies for five health systems, and has earned accreditation status from URAC (Utilization Review Accreditation Commission) — the medical profession’s gold standard for third-party validation of high-quality health care.
The single greatest benefit a URAC-accredited partner offers hospitals is a significant reduction in the calendar time, and in the personnel time-investment, required to earn the accreditation they need to own a successful specialty pharmacy. For all practical purposes, our accreditation cuts your hospital’s specialty pharmacy accreditation time frame in half.
ProxsysRx is here to help, if you have questions.
There are so many ways to optimize your 340B drug program savings and benefits. For more information on any aspect of developing and managing a successful 340B program, contact: Howard Hall — C: 214.808.2700 | howard.hall@proxsysrx.com
