Read time: 3 minutes
By: Brad Myers
In today’s rapidly evolving healthcare landscape, health system pharmacies are under constant pressure to optimize performance and drive revenue. Traditional benchmarking methods often fall short of providing the tailored insights needed to achieve these goals. To illustrate some of the advantages of using an indexing approach over benchmarking, we recently sat down with Brad Myers, PharmD, MBA Vice President, Health System Pharmacy Operations, Retail and Specialty Advisory Services for McKesson Health Systems. In this exclusive Q&A, Brad shares his expert insights on how data-driven strategies can boost the health system pharmacy’s revenue and overall performance.
McKesson Health Systems Editorial Team (MHS): Brad, can you explain the key differences between indexing and benchmarking in the context of health system pharmacy?
Brad Myers (BM): Absolutely. Benchmarking often involves comparing your performance against broad, generalized data that may not always align with your unique strategic objectives. On the other hand, indexing allows for tailored data tracking that closely aligns with your health system's specific goals, providing more relevant and actionable insights.
MHS: How does indexing ensure data integrity and relevance compared to traditional benchmarking?
BM: Benchmarking can be influenced by various factors like health system size and patient demographics, which can lead to inconsistent comparisons. Indexing, however, uses standardized metrics that ensure greater data integrity and relevance. This makes the comparisons more accurate and meaningful for your health system’s specific situation.
MHS: What are some tangible benefits that health systems can expect from adopting an indexing approach?
BM: By adopting an indexing approach, health systems can gain actionable insights that help boost revenue, reduce spend, and prevent leakage. These insights are tailored to track specific performance targets, making it easier to identify and act on opportunities for financial improvement.
MHS: Can you share an example of how indexing could help a health system improve its performance?
BM: Certainly. A health system could use a custom-tailored indexing approach, along with data-driven insights and guidance from our Professional & Advisory Services (P&AS) team, to closely monitor their medication utilization and costs. This approach can help them to identify inefficiencies and implement targeted interventions. As a result, they could potentially see a significant reduction in medication waste and an increase in overall cost savings, directly contributing to improved financial performance.
MHS: What makes McKesson's Professional & Advisory Services team uniquely qualified to assist health systems in this area?
BM: Our team combines deep industry expertise with a holistic, data-driven approach. We don't just provide data; we offer expert insights and tailored strategies that align with your health system's unique objectives. This comprehensive approach ensures that you can make informed decisions that drive meaningful improvements in performance and revenue.
MHS: How can health systems get started with McKesson's indexing strategy?
BM: Health systems can contact us directly at pas@mckesson.com to learn more about how our Professional & Advisory Services team can help them achieve more with data-driven insights and expert guidance. We're here to support you in elevating your health system's performance to the next level.
For more information about how the expertise of McKesson’s Professional & Advisory Services (P&AS) Team – comprised of industry experts with strong business, clinical, and health system pharmacy backgrounds – can help your health system achieve more, contact us directly at pas@mckesson.com or visit our P&AS page.
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