CONNECTOR CORNERx 029 - 07-30-2024

Pharmacy Strategy & Career Development Newsletter: 340B, Financial Reports, Drive & Motivation

PHARMACY STRATEGY: 340B

The 340B Drug Pricing Program is a critical component of pharmacy strategy for hospitals, particularly those serving vulnerable populations. Established by Congress in 1992, the program is designed to allow hospitals and other eligible healthcare providers—known as “covered entities”—to purchase medications at significantly reduced prices. Here are some key points highlighting its importance:

• Financial Relief: The program enables covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.
• Compliance: It requires a nuanced understanding of operational management, financial oversight, governmental compliance, and consistent attention to the systems and auditing.
• Access to Medication: By reducing drug costs, the program helps improve patient access to necessary medications, which is especially important given rising drug prices and the increasing market for specialty drugs.
• Enhanced Services: The savings from the 340B program can be used to fund additional patient services and programs, contributing to health systems' overall mission of providing care for underserved communities.
• Strategic Planning: The program necessitates strategic planning for pharmacy leaders to ensure compliance, optimize savings, and effectively use those savings to improve patient outcomes.

The 340B program is not just about pharmacy cost savings; it’s a strategic tool that supports broader health system goals, including expanding patient care services, improving health outcomes, and addressing health disparities. It’s essential for pharmacy leaders to understand and effectively manage the 340B program to maximize its benefits for their organizations and the communities they serve.

Some of my go-to resources on this subject are:

340B Health

340B Prime Vendor Program

ASHP Advocacy Site - 340B

CAREER DEVELOPMENT: Financial Reports

I am currently engaged in a lot of financial planning and management, between budget builds and the Masters in Pharmacy Leadership course I am teaching at the University of Cincinnati this summer. 

It reminded me how important finance is but how often it is overlooked in our training and management time. 

My favorite book on competencies, For Your Improvement, lists these characteristics of someone skilled in Financial Acumen.

• Understands the meaning and implications of key financial indicators. 
• Uses financial analysis to generate, evaluate, and act on strategic options and opportunities.  
• Integrates quantitative and qualitative information to draw accurate conclusions

A director of pharmacy recently shared that they have monthly meetings with the extended leadership team to review their financial reports and do topic discussions related to various finance topics. 

So, regardless of your role, get some training and ask to be involved in your department or organizations financial reporting. 

Two books that I recommend and use in the course are:  Financial Management for Health System Pharmacists and Financial Management for Pharmacists: A Decision-Making Approach.

FUN & JOY: Drive & Motivation

One of my favorite books on engagement and motivation is Drive: The Surprising Truth About What Motivates Us by Dan Pink.

The book examines the three elements of true motivation (Motivation 3.0)—autonomy, mastery, and purpose.

• Autonomy refers to our desire to direct our own lives.
• Mastery is our urge to continually improve at something that matters to us.
• Purpose is our yearning to do what we do in the service of something larger than ourselves

Incorporating themes from “Drive” into the pharmacy profession, we find joy in our autonomy to make decisions that impact patient care, our pursuit of mastery in our field, and our purpose of improving health outcomes.

SUPPORT AND RESOURCES: 

I am here to support you in your journey to advance pharmacy and accelerate your joyful engaging career. 

Check out these additional resources or schedule time for us to connect.