1. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 Richard Ponder, MBA, CPhT, CPP, CEPP, CMRP Division Inventory and Procurement Analyst HCA – Delta Division Justification & Development of a Pharmacy Purchasing Professional

2. Objectives Describe the role of a dedicated pharmacy purchasing professional. Outline steps to justify and create a dedicated pharmacy purchasing professional. Describe a model to prepare pharmacy purchasing professionals for future practice. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

3. Current “Buyer” Role Varies significantly among hospitals Traditional functions –Order medications and supplies –Receive order/invoices –Restocking and repackaging –Maintain inventory area –Borrow/Loan –Billing – departments, pt. charges, coding, etc –Reports, Audits, Analytical task –Work with automation systems –Communicate supply issues to….. –Assist in technician duties –Perform any and all task assigned National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

4. Barriers Human Resource Department –value, background, knowledge, and skills –“Don’t we have a department for that?” Pharmacy Support –value, perception –“All you do is play on the computer and talk on the phone.” –“How did you get a promotion/pay increase when we never have anything on the shelves?” Professional Development –Education, certifications, additional training –Lack of Pharmacy and/or Healthcare specific National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

5. A Pharmacy Purchasing Professional An individual working with pharmacy who leverages his/her knowledge and experience in the purchasing of products and services required to provide all customers with quality cost effective healthcare. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

6. Pharmacy Purchasing Professional’s Role Traditional functions Provides Pharmacy with expertise in: –Business –Contracts –Logistics and Distribution –Project Management –Process Improvement –Quality Controls –Supplier Relations –Customer Relations –Technology National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

7. Top Skills for the Future Negotiations Relationship Management Legal Aspects of Purchasing New Technology /Software Electronic Commerce Strategic Planning Logistics Inventory Control Cost/Price Analysis Performance Measurements Supplier Evaluation Contract Development and Management Team Building National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 Sourced: CAPS Study, PET II 2004

8. Justification- How? Professional – more work & documentation –Position description vs. current responsibilities –What do I need to know? –What do I need know how to do? –“What have you done for me lately?” book –Internal Proposal Management – ROI –Executive Summary, Background & Description, Market Analysis, Clinical and Quality Requirements, Operational Structure & Processes, Financial Projections, Critical Risk and Opportunities –Job Function Analysis –Salary, Wages and Benefits National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

9. Career Development: Advancement, Security and Value SMART –Specific, measurable, agreed upon, realistic and time-bound FAMIC –Few in number and focused, aligned internally and organizationally, intended to build mastery; incremental; and controllable FITEMA (AFITME) –Fairly determined, individual, task-focused, error- tolerant, matched with the cadence of work and action-oriented National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

10. 1 Technician, Senior/Lead Technician Buyer Supervisor, Coordinator, Agent, Analyst Manager, Regional, Corporate, GPOs, Beyond Pharmacy Purchasing Professional Career Levels 2 3 4

11. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 1 Scope of practice Education, certification, and training Experience Knowledge, skills and abilities Pharmacy Purchasing Professional Position Elements 2 3 4

12. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 Scope TechnicianBuyerSupervisorManager Performs a variety of duties in addition to purchasing. Task Driven Competent in the core elements of purchasing addendums. Inventory Management Fully competent in all elements of the operational addendums. Supply Chain Management Fully competent in all elements of the operational and financial addendums. Strategic Management

13. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 Education/Certification/Training TechnicianBuyerSupervisorManager High School diploma (or GED). Must comply with state specific pharmacy technician regulations and requirements. Nationally Certified Technician preferred. Nationally Certified Technician required. 2 year college degree preferred. Nationally Certified Technician required. 2 or 4 year college degree in related area required. Certification and additional training in related area preferred. Nationally Certified Technician required. 4 year college degree in related area required. Certification and additional training in related area required. Masters preferred.

14. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 Experience TechnicianBuyerSupervisorManager 0 to 2 years of pharmacy technician experience. 2 to 3 years of hospital pharmacy technician experience. Purchasing experience preferred. 3+ years of hospital pharmacy technician experience. 2 to 3 years of pharmacy purchasing experience in multiple acute care hospitals preferred. 5+ years of pharmacy purchasing experience in mid to large size hospitals or health systems. Established success in operational and financial arenas.

15. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 Job Overview Essential Functions –Establish and maintain appropriate cost effective on hand product availability –Implement and maintain best practice in pharmacy supply chain operations –Work with management, purchasing, accounts payable, business operations, clinical departments and hospital customers to identify opportunities of cost savings or clinical value –Conducts audits and analysis of contract compliance, invoices, charge master and department finances –Prepare presentations, reports and other documents as needed relative to cost and assigned projects –Maintain compliance

16. National Pharmacy Purchasing Association’s 15 th Annual Conference 2011 How can I become a Pharmacy Purchasing Professional? Personal Assessment, Goals and Plan KSA - ABCs –Analytics, Business and Communications Training Agenda –Determine needs: personal and employer –Decide on type/style –Negotiate commitment –Document training –Document new skills in action

17. Resources No Cost –Social Media: industry specific topics/groups –Library: books/article on supply chain, finance, operations –Publications: Pharmacy related for trends/industry news –Employer: PowerPoint, communication skills, excel, etc –GPO & Wholesaler: educational offerings Low Cost –Membership: NPPA, ASHP, AHRMM, APICS, PMI –Books, podcast, book summaries –Training/certificate courses –Certification –Conferences/Meetings High Cost –Formal education –Training programs National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

18. Resources No Cost –Social Media: industry specific topics/groups –Library: books/article on supply chain, finance, operations –Publications: Pharmacy related for trends/industry news –Employer: PowerPoint, communication skills, excel, etc –GPO & Wholesaler: educational offerings Low Cost –Membership: NPPA, ASHP, AHRMM, APICS, PMI –Books, podcast, book summaries –Training/certificate courses –Certification –Conferences/Meetings High Cost –Formal education –Training programs National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

19. “The” Pharmacy Purchasing Professional of Tomorrow Nationally Certified Pharmacy Technician Bachelor's in Business Administration or Supply Chain Management with a minor in Management Information Systems Certification in supply chain, healthcare supply chain, project management, business analyst, etc Diverse experience – internships, volunteering, organization involvement, etc Master’s in Healthcare Administration or Business Administration National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

20. Policy Patient Safety Leadership cGMP Regulatory Sales GPO Consulting Insurance Instructor Automation Industry Business Manager Operation Manager Supply Chain Finance/Revenue - Analyst Hospital I now have options. A “CPhPP” Future

21. Conclusion Organizations should support the hiring, development and retaining of quality Pharmacy Purchasing Professionals Continuous education and training is needed for the advancement of the profession Each Pharmacy Purchasing Professional is responsible for the promotion and advancement of their profession National Pharmacy Purchasing Association’s 15 th Annual Conference 2011

22. Any Questions? Email: Richard.Ponder@hcahealthcare.com National Pharmacy Purchasing Association’s 15 th Annual Conference 2011