Apex Care Pharmacy Seeks to Increase Revenue and Reduce Competition from Chain Pharmacies by Focusing on Mental Healthcare Facilities
AMBA 604 Section 9046
Professor Sundar
March 15, 2009
Table of Contents
Executive Summary 3
Introduction 4
Project Management Plan 4
I. Project Overview 4
Project Goal 4
Project Manager 4
Project Team 4
Team Contract 4
Project Deliverables 5
II. Project Organization 5
Organizational Structure 5
Roles and Responsibilities 5
III. Work Breakdown Structure & Schedule 6
Work Breakdown Structure 6
Work Schedule 6
IV. Managerial Process 6
Assumptions, Dependencies, & Constraints 6
Risk Management 7
Monitoring & Controlling Mechanisms 7
V. Operations Management Plan 7
Operations Strategy 7
VI. Information Systems Plan 8
Information Systems Objectives 8
Information Systems …show more content…
Management/Maintenance 8
Information Security 8
Conclusion 8
References 9
Executive Summary
One of the main challenges facing independent pharmacies is competition from larger chain pharmacies and mail order services. Apex Care Pharmacy is an independent pharmacy seeking to become more competitive with chain retailers and increase revenue by partnering with Mental Healthcare facilities. Market research has revealed that client intake at these Mental Health facilities has spiked in recent years with an average of 150 clients per facility. Obtaining business from these facilities would be a tremendous opportunity for Apex to increase customer volume and company revenue.
Deliverables for this project include establishing a long-term partnership with at least three Mental Healthcare facilities. This endeavor will also increase pharmacy revenue by servicing the monthly medication needs of facility clients. Since Apex is a relatively small establishment, the project team will consist of the Project Manager who is the Pharmacy Owner, the Pharmacy Manager, the Marketing Representative, the Pharmacist, and the Pharmacy Techs. The Project Manager will oversee the entire project and serve as the final decision maker on all project details. The Marketing Rep will locate and recruit Mental Healthcare facilities, the Pharmacy Manager will handle administrative aspects, the Pharmacist will process and fill client prescriptions, and the Pharmacy Techs will support the Pharmacist in these tasks.
The project will consist of a three phase process. Phase 1 will involve the Marketing Rep. researching and locating different Mental Healthcare facilities. During Phase 2 the Marketing Rep. will visit and recruit Mental Health facilities, involving multiple steps to completion. Phase 3 is contingent upon the progress and completion of Phase 2 and includes preparation and maintenance of client medication needs. The Pharmacist and Pharmacy techs will be instrumental in completion of Phase 3 which is an on-going process since mental health clients receive medication on a monthly basis. Since Apex’s goal is to acquire a partnership with at least three Mental Healthcare facilities, project phases will be on-going with continuous monitoring until project goals are achieved.
Operational goals for this project are to serve clients effectively and efficiently while providing optimal value. This will be accomplished through the development of an assembly line including the Pharmacist and Pharmacy Techs working cooperatively to process prescriptions more efficiently. A top priority for Apex is to continue to provide personalized quality care to all customers.
Apex Care Pharmacy will utilize HBS, the leading pharmacy software provider designed to supply a comprehensive and efficient database for pharmacy records and prescription filling processes. This system will facilitate medication management services and allow Apex to increase productivity and enhance the quality of service provided to customers.
Introduction
Apex Care Pharmacy is an independent retail pharmacy that provides medication management services to customers throughout the DC metropolitan area. Apex Pharmacists are trained in handling difficult prescription issues, understand the needs of chronic care patients, and are committed to optimizing pharmaceutical care for each patient to improve outcomes and reduce costs. Customers of Apex receive individualized pharmacy consultation and monitoring treatment to prevent under treatment, over treatment, and possible drug interactions. These services are among the benefits of utilizing an independent pharmacy that have the resources to provide the personalized quality care that some of the large chain pharmacies often neglect. However, one of the main challenges independent pharmacies face is competition from large chain pharmacies and mail order prescription services.
To overcome the loss of revenue from customers utilizing mail order services or chain pharmacies, Apex Care Pharmacy plans to obtain the business of Mental Healthcare facilities located in the DC metropolitan area. Market research has revealed that patient intake at these facilities has spiked over the last 5 years with a 15 % increase. Each one of the facilities has an average of 150 clients on their rooster receiving monthly medications. A partnership with Mental Healthcare facilities would stand to increase pharmacy revenue by providing more stability and having a routine volume of clients receiving monthly medications. Therefore the pharmacy would not have to rely on occasional walk-in customers for business. Partnering with at least 3 of these Mental Healthcare facilities would provide a substantial amount of customers to exceed company goals in terms of volume, workload, and revenue.
Project Management Plan
I. Project Overview
Project Goal: The goal of this project is for Apex Care Pharmacy to acquire business from Mental Healthcare facilities located in the DC metropolitan area in order to increase revenue and allow the independent pharmacy to become more competitive with large chain retailers.
Project Manager: Pharmacy Owner
Project Team:
Marketing Representative
Pharmacist
Pharmacy Manager
Pharmacy Techs
Team Contract: All team members of this project have agreed to provide full participation on assigned tasks and commit to having tasks completed by the designated completion date. Also, all team members are to be kept informed on any changes to project objectives, tasks, or deadlines, which will be discussed during team meetings. Team members are encouraged to express any suggestions or provide insight to help improve project outcomes, however all final decisions will be made by the Project Manager. Professional conduct is expected from all team members for the duration of the project.
Project Deliverables: Deliverables for this project will include weekly meetings between the Pharmacy Manager and the Marketing Rep. to discuss any updates and progress. Ongoing research will be conducted to scout out different mental health facilities, which will be conducted by the Marketing Rep. The main deliverable for this project is to establish a long-term partnership with at least three Mental Healthcare facilities servicing the medication needs of the clients on a monthly basis.
II. Project Organization
Organizational Structure:
Roles and Responsibilities:
The Project Manager directs the entire project and delegates responsibilities to other members of the team. The Project Manager is also kept informed on progress and updates of the project and determines if adjustments need to be made. The Marketing Rep. is responsible for researching, locating, and recruiting the mental health facilities. The Pharmacy Manager handles the administrative aspects of the pharmacy. The Pharmacist is responsible for processing and filling prescription orders. The Pharmacy techs provide support to the Pharmacist and assists with the filling and processing of prescription orders.
III. Work Breakdown Structure and Schedule
Work Breakdown Structure:
Phase 1: Research Mental Healthcare Facilities 1.1 Locate Mental Healthcare facilities in the DC metro area 1.2 Determine how many clients each facility services 1.3 Determine if facility currently works with a pharmacy
Phase 2: Contact & Recruit Mental Health facilities
2.1 Make routine visits to facilities to inform and educate staff members on pharmacy services
2.2 Locate contact person at facility who makes clinical decisions
2.3 Establish a verbal or written contract
Phase 3: Prepare/Maintain Client Medication Needs
3.1 Obtain client information (including insurance info.) & input into system
3.2 Process doctor’s prescription orders
3.3 Fill prescriptions and dispense to clients
*All phases are to be repeated for each Mental Health facility acquired.
Work Schedule:
Task Projected Completion Date
Phase 1 April 1st (3 weeks)
Phase 2 May 15th (2 months)/Ongoing
Phase 3 Contingent upon completion of Phase 2
For the purposes of this project it is difficult to constrain tasks to a rigid schedule. Phase 1 which includes facility research and inquiry should take a maximum of three weeks, allowing the Marketing Rep. to gather information on multiple facilities. Phase 2 is an ongoing process, considering that the Marketing Rep. is visiting different locations, making contacts, and trying to gain commitments from facilities to utilize the pharmacy. A target goal of 2 months to acquire one Mental Health facility will be set, however depending on circumstances this process can vary in the amount of time it takes to reach the intended goal. Phase 3 is completely reliant on the progress and completion of Phase 2 and is also an ongoing process.
IV. Managerial Process
Assumptions, Dependencies, and Constraints: One of the main assumptions of this project is that the Mental Healthcare facilities are not already associated with a pharmacy and if so would be willing to switch to Apex. Because pharmacy competition is so concentrated in the DC metro area it is very likely that other pharmacies have already tapped into this market. Apex is prepared to overcome this challenge by setting itself apart from other pharmacies and offering facilities free delivery and also waiving the DC Medicaid insurance co-payment for clients.
Team members for this project are dependent on the Marketing Rep. to utilize resources to recruit Mental Healthcare facilities.
Constraints include not having adequate staff to handle increased customer volume. However this can be easily overcome by investing in additional pharmacy techs. The pharmacy techs alleviate some of the workload at a relatively minimal cost, thereby allowing the pharmacy to function more efficiently.
Risk Management: Risks involved in this project include devoting all of pharmacy resources to this endeavor and neglecting current customer base. To avoid this risk measures will be taken to ensure that the pharmacy maintains current customers. The Pharmacy Manager will periodically monitor the pharmacy database and make sure that customers who routinely receive medication are having their prescriptions filled in a timely manner.
Monitoring and Controlling Mechanisms: The Marketing Rep. will research and locate Mental Healthcare facilities in the DC metro area and meet with clinical coordinators and recruit them to the pharmacy. This will consist of a multi step process, and the Marketing Rep. will report all updates and progress to the Project Manager. The Project Manager will decide if the project is going on task or if some adjustments need to be made to meet project deadlines and milestones. In addition The Marketing Rep. and the Pharmacy Manager will have weekly meetings to assess project progress and also report findings to the Project Manager. The Project Manager has full authority over the project and therefore ultimately makes decisions regarding the objectives and direction of the project (Jacobs & Chase, 2008).
V. Operations Management Plan
Operations Strategy: The goal of any successful operations management plan is for the product or service to function effectively and efficiently while providing value to the customer (Jacobs & Chase, 2008).
Once Apex begins to acquire the Mental Healthcare facilities, providing and maintaining optimal service will be key to developing a lasting partnership with these facilities. The operations management plan for this project will consist of providing the medication needs of the Mental Healthcare facilities through a cooperative effort from the pharmacist and pharmacy techs. This entails filling prescription orders, making sure refills are automatically queued so that they are filled on time, resolving any insurance issues, and delivering medication to the proper location. Providing personalized patient care is a top priority for Apex Care Pharmacy, and the pharmacy intends to do so for the clients of the Mental Healthcare
facilities.
With the addition of new mental health clients to pharmacy, the workload will increase and in order to meet this new demand the pharmacy will have to develop an assembly line to process prescriptions more efficiently. Depending on the amount of new intakes, the pharmacy might have to look into hiring another tech so that quality is not sacrificed for maintaining a larger customer volume.
IV. Information Management Plan
Information Systems Objectives: Apex Care Pharmacy will utilize HBS software (Health Business Systems) which is the leading pharmacy software provider designed to supply comprehensive, efficient, and flexible database for pharmacy records and prescription filling processes. This system is also designed to increase productivity and enhanced to enable the dispensing of prescriptions and the processing of claims without disruption.
Information Systems Management/Maintenance: All members of the project team will have access to HBS utilizing a secure login and password. Once on the system any member will be able to retrieve customer information for prescription filling, Rx inquiry or other patient related information. HBS is highly specialized to automatically update drug pricing as it varies, drug recalls, controlled substance monitoring, and insurance billing codes. The pharmacy manager will train any new hires on the HBS software and provide them with a secure login and password.
Information Security: Since all members of the project team will have access to HBS and patient records it is crucial that all members comply with HIPAA (Health Insurance Portability and Accountability Act) laws and regulations. These laws were put in place to protect the privacy of patient health information. All healthcare providers, health organizations, and government health plans that use, store, maintain, or transmit patient healthcare information are required by law to comply with the privacy regulations of HIPAA. Individuals who are provided with a login and password will be able to access the software and the system will timeout if it is not being utilized for 30 minutes.
Conclusion
The goal of this project is for Apex Care Pharmacy to obtain the business of Mental Healthcare facilities in order to increase revenue, allowing the pharmacy to become more competitive with larger chain pharmacies. Research has indicated a recent surge in Mental Health client intakes with each facility averaging 150 clients. Acquiring the business of Mental Health facilities will provide stability and a steady influx of revenue for the pharmacy with clients on a monthly medication regimen. Completion of this project will consist of a three phase on-going process. For this reason it is important for the Marketing Rep., Pharmacy Manager, and Project Manager to meet and track progress since there are no rigid completion dates. This will allow all members of the team to remain on track and determine the strategies that need adjustments. Once facilities have committed to utilize pharmacy services, effective and efficient operations management will be key to providing clients with optimal value.
References
Baltzan, P. & Phillips, A. (2009) Essentials of business driven information systems. New York: McGraw Hill/Irwin.
Jacobs, F.R & Chase, R.B. (2008). Operations and supply management: the core. New York: McGraw Hill/Irwin
Schwalbe, K. (2009). An Introduction to Project Management. (2nd Ed.). Course Technology.