Justification & Development of a Pharmacy Purchasing Professional

1. Justification & Development of a Pharmacy Purchasing Professional Richard Ponder, MBA, CPhT, CPP, CEPP, CMRP Division Inventory and Procurement Analyst HCA – Delta Division

2. Objectives • Describe the role of a dedicated pharmacy purchasing professional. • Outline steps to justify and create a dedicated pharmacy purchasing professional. • Describe a model to prepare pharmacy purchasing professionals for future practice. National Pharmacy Purchasing Association’s 15th Annual Conference 2011

3. Current “Buyer” Role • Varies significantly among hospitals • Traditional functions • Order medications and supplies • Receive order/invoices • Restocking and repackaging • Maintain inventory area • Borrow/Loan • Billing – departments, pt. charges, coding, etc • Reports, Audits, Analytical task • Work with automation systems • Communicate supply issues to….. • Assist in technician duties • Perform any and all task assigned National Pharmacy Purchasing Association’s 15th Annual Conference 2011

4. Barriers • Human Resource Department • value, background, knowledge, and skills • “Don’t we have a department for that?” • Pharmacy Support • value, perception • “All you do is play on the computer and talk on the phone.” • “How did you get a promotion/pay increase when we never have anything on the shelves?” • Professional Development • Education, certifications, additional training • Lack of Pharmacy and/or Healthcare specific National Pharmacy Purchasing Association’s 15th Annual Conference 2011

5. A Pharmacy Purchasing Professional An individual working with pharmacy who leverages his/her knowledge and experience in the purchasing of products and services required to provide all customers with quality cost effective healthcare. National Pharmacy Purchasing Association’s 15th Annual Conference 2011

6. Pharmacy Purchasing Professional’s Role • Traditional functions • Provides Pharmacy with expertise in: • Business • Contracts • Logistics and Distribution • Project Management • Process Improvement • Quality Controls • Supplier Relations • Customer Relations • Technology National Pharmacy Purchasing Association’s 15th Annual Conference 2011

7. Top Skills for the Future • Negotiations • Relationship Management • Legal Aspects of Purchasing • New Technology /Software • Electronic Commerce • Strategic Planning • Logistics • Inventory Control • Cost/Price Analysis • Performance Measurements • Supplier Evaluation • Contract Development and Management • Team Building Sourced: CAPS Study, PET II 2004 National Pharmacy Purchasing Association’s 15th Annual Conference 2011

8. Justification- How? • Professional – more work & documentation • Position description vs. current responsibilities • What do I need to know? • What do I need know how to do? • “What have you done for me lately?” book • Internal Proposal • Management – ROI • Executive Summary, Background & Description, Market Analysis, Clinical and Quality Requirements, Operational Structure & Processes, Financial Projections, Critical Risk and Opportunities • Job Function Analysis • Salary, Wages and Benefits National Pharmacy Purchasing Association’s 15th Annual Conference 2011

9. Career Development:Advancement, Security and Value • SMART • Specific, measurable, agreed upon, realistic and time-bound • FAMIC • Few in number and focused, aligned internally and organizationally, intended to build mastery; incremental; and controllable • FITEMA (AFITME) • Fairly determined, individual, task-focused, error-tolerant, matched with the cadence of work and action-oriented National Pharmacy Purchasing Association’s 15th Annual Conference 2011

10. Pharmacy Purchasing Professional Career Levels 1 Technician, Senior/Lead Technician Buyer 2 Supervisor, Coordinator, Agent, Analyst 3 Manager, Regional, Corporate, GPOs, Beyond 4

11. Pharmacy Purchasing Professional Position Elements 1 Scope of practice Education, certification, and training 2 Experience 3 Knowledge, skills and abilities 4

12. Scope

13. Education/Certification/Training

14. Experience

15. Job Overview • Essential Functions • Establish and maintain appropriate cost effective on hand product availability • Implement and maintain best practice in pharmacy supply chain operations • Work with management, purchasing, accounts payable, business operations, clinical departments and hospital customers to identify opportunities of cost savings or clinical value • Conducts audits and analysis of contract compliance, invoices, charge master and department finances • Prepare presentations, reports and other documents as needed relative to cost and assigned projects • Maintain compliance

16. How can I become a Pharmacy Purchasing Professional? • Personal Assessment, Goals and Plan • KSA - ABCs • Analytics, Business and Communications • Training Agenda • Determine needs: personal and employer • Decide on type/style • Negotiate commitment • Document training • Document new skills in action

17. Resources • No Cost • Social Media: industry specific topics/groups • Library: books/article on supply chain, finance, operations • Publications: Pharmacy related for trends/industry news • Employer: PowerPoint, communication skills, excel, etc • GPO & Wholesaler: educational offerings • Low Cost • Membership: NPPA, ASHP, AHRMM, APICS, PMI • Books, podcast, book summaries • Training/certificate courses • Certification • Conferences/Meetings • High Cost • Formal education • Training programs National Pharmacy Purchasing Association’s 15th Annual Conference 2011

18. Resources • No Cost • Social Media: industry specific topics/groups • Library: books/article on supply chain, finance, operations • Publications: Pharmacy related for trends/industry news • Employer: PowerPoint, communication skills, excel, etc • GPO & Wholesaler: educational offerings • Low Cost • Membership: NPPA, ASHP, AHRMM, APICS, PMI • Books, podcast, book summaries • Training/certificate courses • Certification • Conferences/Meetings • High Cost • Formal education • Training programs National Pharmacy Purchasing Association’s 15th Annual Conference 2011

19. “The” Pharmacy Purchasing Professional of Tomorrow • Nationally Certified Pharmacy Technician • Bachelor's in Business Administration or Supply Chain Management with a minor in Management Information Systems • Certification in supply chain, healthcare supply chain, project management, business analyst, etc • Diverse experience – internships, volunteering, organization involvement, etc • Master’s in Healthcare Administration or Business Administration National Pharmacy Purchasing Association’s 15th Annual Conference 2011

20. I now have options. Hospital Business Manager Operation Manager Supply Chain Finance/Revenue - Analyst Industry Regulatory Sales GPO Consulting Insurance Instructor Automation Policy Patient Safety Leadership cGMP A “CPhPP” Future

21. Conclusion • Organizations should support the hiring, development and retaining of quality Pharmacy Purchasing Professionals • Continuous education and training is needed for the advancement of the profession • Each Pharmacy Purchasing Professional is responsible for the promotion and advancement of their profession National Pharmacy Purchasing Association’s 15th Annual Conference 2011

22. Any Questions? Email: Richard.Ponder@hcahealthcare.com National Pharmacy Purchasing Association’s 15th Annual Conference 2011