ANNUAL REPORT FY2006
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Welcome
From the Department of Pharmacy Services | Inpatient
Drug Distribution Services | Clinical
Pharmacy Services
Ambulatory
Pharmacy Services | Medication
Safety | Drug
Information and Investigation Services
Research
and Education | HomeMed
Services | Computerization
and Automation
Continuous
Quality Improvement | Purchasing,
Inventory, Management, and Distribution | Business
Operations
HOMEMED
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
Although HomeMed resides within the Home Care Service division in
the Hospital and
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
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
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
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