UNIVERSITY OF MICHIGAN – DEPARTMENT OF PHARMACY SERVICES

 

ANNUAL REPORT FY2006

 


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Research and Education   |   HomeMed Services   |   Computerization and Automation
Continuous Quality Improvement   |   Purchasing, Inventory, Management, and Distribution   |   Business Operations


HOMEMED

 

Text Box:  

Christopher Maksym, Pharm.D.
Director, HCS
HomeMed operates as a business unit where commodity procurement, receiving, insurance verification, claims processing and cash application operation activities are all completed within the pharmacy located at 2850 S. Industrial Hwy., which is approximately 2 miles south of the main medical campus.   A positive net margin is consistently generated in the area and this contributes to the health system margin target and support of non-revenue generating activities.  Clinically, patient care, quality and process improvement programs are integrated into the health systems institutional plan and contribute to maintaining the institution’s tradition of leadership in healthcare

 

 

 

 

Service Description and Background

 

HomeMed is a licensed pharmacy and home infusion provider responsible for providing a wide range of  products and services to safely and effectively facilitate care to UMHS patients in the convenience and comfort of their home.  Since 1989, HomeMed has been providing infusion medications, nutritional therapy, specialty drugs, high-tech infusion nursing and care management services throughout Michigan and Northern Ohio. An interdisciplinary team consisting of pharmacists, nurses and dietitians along with technical, administrative and support staff totaling 101 FTEs provide pharmacy compounding, equipment management, dispensing, delivery and care management services to ensure that patient home regimens are safe and effective throughout the course of therapy.  Staff have direct access to up-to-date and complete medical and patient drug information which facilitates effective and efficient collaboration with physicians and other caregivers within the health system. In order to ensure a smooth transition to home care, HomeMed has a hospital-based training and education team; this team consists of nurses and dietitians who work with patients and the referring health care team to ensure that home care needs are identified prior to hospital discharge and infusion nurses who provide care for the patient in the home.

 

 

Although HomeMed resides within the Home Care Service division in the Hospital and Health Centers corporate structure an administrative relationship exists between HomeMed and the Department of Pharmacy Services. Thus many administrative, pharmacy practice and educational activities are collaborative and integrated.  There is HomeMed representation on several Department of Pharmacy and Health System committees.   Additionally, most HomeMed clinicians and leaders hold academic appointments within the University reflecting the commitment to teaching, experiential training and research.

 

 

2006 Year in Review

 

Referral Activity

 

An average census of 1,171 patients was maintained by processing 1,983 (41%) new patient therapy referrals and 2,984 (59%) existing patient therapy or existing patient new therapy referrals.  HomeMed referrals are obtained exclusively from UMHS where on average 66.3% of patient referrals (an average 65.3% of therapies) processed by Discharge Planning were referred to HomeMed opposed to other home infusion providers.

 

The majority (63%) of home infusion therapy referrals originate from inpatient hospital discharges.  Thirty-three percent of HomeMed referrals come from ambulatory care areas with the Cancer Center being the predominant origin of referrals in this category.  The remaining four percent of referrals originate in either the emergency department, primary care sites or in the home where typically a previous patient is restarted on a therapy previously administered in the home.

 

Of patients not referred to HomeMed, the majority (81%) were not serviced by HomeMed due to previous provider relationship and preferred provider payor agreements as assessed by the discharge planning clinician.  Additionally, the benefit change to Medicare Part D necessitated transfer of many existing “dual-eligible” Medicaid/Medicare patients from HomeMed to another participating provider.

 

 

 

 

 

 

 

 

 

Pharmacy Operation Activity

 

Selected metrics are presented in the table below and illustrates a decrease in activity and this correlates with the decrease in revenue realized.

 

FY '06 Total

Monthly Average FY '06

FY '06 % Change -Vs- FY '05

Total Orders Processed

26,904

2242

-2.8%

Total Prescriptions Filled

43,703

3642

1.7%

Total Units Admixed by Therapy

89,143

7,429

-19.17%

New Therapy Starts

4,281

357

-4.1

Total Infusion Days

315,733

26,311

-5.3%

HomeMed Deliveries

13,858

1,155

-4.3%

Sub Contracted-HomeMed Deliveries

10,141

845

2%

Total Deliveries

24,004

2000

-1.7%

Percent HomeMed Deliveries

57.73

 

 


 

 

Drug Spend and Inventory Management

 

The HomeMed drugs spend was $6.4 million and this represented approximately 35.41% of the total operating expense.  Five therapies (i.e., anti-hemophilia factor, antibiotics, intravenous immunoglobulin, anti-fungal agents and blood component stimulating factors) comprise 83% of the annual drug expense as illustrated below.

 

 

Ten pharmaceuticals comprise 36% of the total drug spend as illustrated graphically.

HomeMed purchases the majority (66.6%) of its pharmaceuticals from the institution’s primary drug wholesale company, AmerisourceBergen.  A very small amount (2.9%) is procured from the department of pharmacy with the remaining drugs obtained directly from the manufacturer or secondary wholesaler (primarily biologics on backorder).

 

The annual physical inventory was completed on June 10, 2006 and revealed an inventory value of $725,205.  This computes to an annual inventory turn rate of 12.17 turns which is very favorable considering the ongoing problems with product outages and back orders at the both the wholesaler and manufacturer levels. 

 


Home Infusion Nursing Activity

 

A total of 5,599 in-home infusion nursing visits were made by HomeMed infusion nurses (13.6% or 760) and subcontracted nursing agencies (86.4% or 4,839) to fulfill payor-contract requirements.  HomeMed infusion nursing activity is typically associated with more complex visits (e.g., IVIG administration, Synchromed Pump refills, and chemotherapy) and visits where other agencies do not have available nurses to provide services at the time needed. 

 

Note that these totals do not include other agency visits which were not sub-contracted wherein the home health agency billed the payor directly.  Michigan Visiting Nurses (Michigan Health Corporation) is the predominant provider of in home nursing services to HomeMed patients as illustrated in the following chart.

 


 

 



 

 

 

 

 

Selected Accomplishments

 

·         Development and implementation of the 340B Purchasing Program for pharmaceuticals exclusive of anti-hemophilia products

 

·         TIE (Transmission of Information Electronically) Steering Committee formalized with staff and structure to contain and coordinate e-projects within and among the 3 service lines for HCS.

 

·         Launch of web-based referral system for ambulatory clinics (HCS Transitions web page) to initiate referrals to HomeMed

 

·         Development and implementation of delivery signature capture process with a 98.5% capture rate

 

·         Implementation of vehicle tracking system for all HomeMed vehicles

 

·          Development and implementation of new pump tracking process pathways with demonstrated increase in compliance

 

·         Development of a First Dose (in the home) for IVIG Therapy

 

·         Development of a Peripheral Nerve Pain Therapy Program

 

Academic and Professional Activities

 

HomeMed continues to contribute to the education of Health Science students.  There were 14 student placements at HomeMed (i.e., 6 Pharmacy, 8 Dietetics) in FY ’06 and 2 staff members presented one or more lectures in the

College of Pharmacy and School of Nursing.  Two pharmacy interns were employed at the pharmacy and there were four active Doctor of Pharmacy student research projects precepted by HomeMed staff.

 

Professional staff made presentations at the local, regional and national level.  Two staff members serve as professional association board of directors at the national level and four staff members serve on various national professional association committees.

 

 

HomeMed Leadership

Mangers

 

Michelle Barnett – Reimbursement

Debbie Kovacevich – Infusion Nursing

Tricia Sirois – Infusion Pharmacy

 

Supervisors

Terrilyn Cook – Medical Records, Office, Facilities

Lisa Klein – Pharmacy Technicians

Eric Korte – Inventory, Warehouse & Shipping

Mary Mancinelli – Billing & Collections

 


Goals for Fiscal Year 2007

 

v      Achieve Budget Margin Target of $2,442,111 (12.0%)

v      Update Process Mapping of primary operations pathways

v      Identify CHIP Replacement Software & Initiate Conversion Plan

v      Negotiate Favorable BCBSM HIT Contract

v      Achieve JCAHO Unannounced Survey Readiness

v      Implement New Business Model inclusive of Medicare Part D participation

v      Realize benefits of TIE, HCS Web Page and IT initiatives