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Can LTC Pharmacies Control Courier Delivery Costs?

Mar 23, 2015

LTC Pharmacies provide services to meet the unique healthcare needs of LTC patients and incur dispensing costs that are 25% higher than traditional retail pharmacies.  However, LTC Pharmacies are in a competitive business environment must create incentives for LTC facilities to engage their pharmacy services.   LTC Pharmacies create their advantage by providing pharmacy services that improve patient care quality and provide operational efficiency. 


One component of dispensing costs is prescription delivery where the LTC Pharmacy delivers the prescription in a timely manner.   In an effort to focus on patient care and gain operational efficiency, LTC Pharmacies have outsourced this delivery function to couriers.  Couriers are experts at same-day-delivery so delivery management is often assigned to the courier for defining route and stat delivery stops.


The shift of delivery management operations to couriers has allowed LTC Pharmacy managers to focus on patient care, but has opened the shipping dock to problematic billings documents.  The LTC Pharmacy relies upon the courier to define the number of stops; and couriers are take this task seriously, but bad characters have been known to submit invoices that favor the courier.


LTC Pharmacy managers would like to identify billing problems, but vague stop descriptions and 25 to 100 page of transactions make it difficult to identify the overbilled deliveries.  The LTC Pharmacy CFO sees this problem, but is unable to obtain solid/consistent numbers.  One CFO felt that digging into courier expense is like ‘nailing a jelly fish to a wall; lots of movement, but nothing solid.”


Supply Chain Finance is a vital player in successful programs to control LTC prescription deliveries and counter-act the escalating cost to service LTC patients.  We work with the local LTC Pharmacy manger and couriers to provide invoice data that is verified for accuracy, analyzed and loaded into our reporting tools.  We transform courier invoices into standard data that can be audited.  But more importantly, their billing data is loaded into a reporting database which allows our clients to analyze delivery activities. 


Our Courier Invoice Management service has enabled our clients to reduce cost per stop by more than 20%.  Plus, LTC Pharmacies are enabled to manage LTC stops and the associated expense.

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