client
Client
One of the largest not-for-profit health plans in the United States
Initiative
Optimize Clinic-Adminstered Medication (CAM) Process to improve service, reduce costs and maintain high patient-safety standards
Situation
After determining the amount of waste occurring due to spoilage and expiration of medicines, one of the country’s largest not-for-profit health plans engaged RGP to help optimize supply and storage procedures. Our focus was on CAM, medication that is administered by a doctor or nurse within the clinic setting.
CAM represented a significant spend for our client and the percentage of waste (medications that spoil or expire) relative to its CAM spend was considered unacceptable. Our client wanted a structured CAM inventory management process that would reduce waste, increase patient safety and decrease the time providers spent on CAM management rather than on patient care.
How We Helped
Leveraging our expertise in supply chain, project management and change management, RGP:
- Conducted 40 process improvement pilot projects using DMAIC (Define, Measure, Analyze, Improve & Control) methodology and Lean Six Sigma framework
- Created 14 best practices to generate immediate cost savings based on improved organizational structure, inventory management and replenishment processes (e.g., smaller medication packaging for efficient consumption)
- Optimized inventory levels using KANBAN cards
- Engaged physicians to standardize medication list
- Established specific days for administration of chemotherapy and other oncology medications to increase efficiency of drug usage and reduce waste
- Developed an internal online marketplace for surplus medication
- Created a dashboard that allowed for self-corrections in behavior before waste occurs
Outcome
As a result of RGP’s efforts, our client achieved total savings of $12M in CAM spend at the completion of the initiative, compared to baseline. Additionally, providers reported increased satisfaction with the new medication stocking and replenishment process. Patient satisfaction increased as well due to reduced process bottlenecks allowing for greater throughput and capacity.