PHARMACY

Site helps open networking
 for pharm students, schools

BY Jim Frederick

NEW YORK — The power of a professionally driven social networking and information platform is now within reach of pharmacists and pharmacy students. And students are taking a lead role in its development and growth.


The new network is called Pharmacist Society. It was conceived and developed as a Web-based networking, information and practice tool by pharmacist Ted Search, president of Skipta — a provider of networking technology for health professionals — and by pharmacy students and educators.


Thanks to a new partnership between Skipta and The Drug Store News Group, Pharmacist Society now is available to professionals and students via PharmacistSociety.com.


Pharmacy students have been key to the development and expansion of the concept. Search reached out to students two years ago, and, given his ties to the University of Pittsburgh School of Pharmacy, enlisted Pitt as the incubation site for the network.


It has been a fruitful collaboration. Pharmacy students at Pitt and other schools have taken leadership roles in bringing the Pharmacist Society concept to life, encouraging its adoption and spreading awareness about its value to other schools and pharmacy groups.


“Students now in pharmacy school started college with Facebook, so it’s second nature for them to use these programs,” said Brian Straub, national student president for the new networking site and a fifth-year student at Pitt’s school of pharmacy. Straub said the site isn’t intended to supplant such social networking sites as Facebook and LinkedIn. “It has a lot of that same powerful technology to communicate, but it’s on a very professional level, with tools tailored to pharmacy students and professionals,” he said. 


“Most importantly as a student, we now have a central site,” Straub added. “So we’re using a portion of Pharmacist Society as our own secure student portal at Pitt, and within that, student organizations have their own dedicated sites with their own specific resources. This is the next step to a mobile world, and having that all being moved into Drug Store News is fantastic, because you have that connection to a provider of national 
pharmacy news and CE credits. So when you make that transition to the professional world, you’re not jumping out of the system you were using in school, you’re just transitioning with a great resource.”


Amanda Johnson, another student leader at Pitt, called Pharmacist Society “a great way to learn more about the profession and to network with those who have been through [school]. Right now we’re in a transition at our school from using an alternate student portal to using Pharmacist Society as our common place to go for the calendar, and for networking with alums and other professionals,” Johnson said.


Another early proponent was Megan Reilly, Pharmacist Society’s national student director of public relations. Reilly and other Pitt students enthusiastically provided Search “with ideas for things we wanted access to,” she said. “For example, we requested that pharmacy groups be on this site. We also wanted blog entries, access to scholarship opportunities and residency and job information.”


Early on, Reilly and other student leaders promoted the site within the Pitt community and beyond. “We even introduced the site overseas last summer at a pharmacy conference in Portugal,” she added.


With graduation looming, Reilly added, “I’m using Pharmacist Society to learn about careers … and contacting people that I might not have had access to previously. I know it’s a safe and professional environment, so I feel comfortable reaching out to these people. In the future, I’d like to be able to use Pharmacist Society as my own professional portfolio.”


Also excited about Pharmacist Society’s potential is its national student director of operations, David Zimmerman, a fifth-year pharmacy student at the University of the 
Sciences in Philadelphia. Zimmerman is helping spread the word about the new resource, both among faculty and students at USP, and within other pharmacy schools and professional organizations, such as the American Pharmacists Association and National Community Pharmacists Association. “It’s going to help students network for their future career, but also connect … student chapters at different pharmacy organizations like NCPA and APhA,” he said.


Pharmacy educators also are embracing the concept. “One of the appealing characteristics of Pharmacist Society … was that you had an opportunity to connect the students and the faculty in a social networking environment that is professionally oriented,” observed Michael Manolakis, assistant dean for planning and associate professor at Wingate University School of Pharmacy in North Carolina.


Manolakis also liked the fact that faculty advisers at Win­gate and other schools maintain some “administrative control” over the content posted on the school’s own Pharmacist Society pages, which are privacy protected.

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TIAS broadens Rx automation portfolio

BY Jim Frederick

KANSAS CITY, Mo. — Building up its automated packaging capabilities for high-output pharmacies, Tension International Automation Solutions has acquired the exclusive rights to Maverick Enterprise’s automation technology.


The agreement includes Maverick’s UPM Tote and BottlePacker systems, along with the company’s Single BottlePacker and ErgoPack packaging technologies. TIAS also will take over service and support for Maverick’s existing automation systems.


A division of Tension Envelope, TIAS specializes in developing scalable systems for central-fill, mail-order and specialty pharmacies. The addition of Maverick’s capabilities in packaging automation, said sales and marketing chief Ken Myers, will beef up its automation support arsenal for high-volume pharmacy customers.


“This technology allows us to help central-fill, mail-order and specialty pharmacies [and] further automate with industry-proven equipment,” he said.


The result, Myers added, will be “reducing staffing and prescription costs while consistently driving down the potential for errors through bar code, RFID and UV verification systems.”


Added Robert Terzini, TIAS’ new head of pharmacy design and engineering, “Many of our customers have had these systems operating for a number of years. They have made their own modifications and have very good ideas as to how they would like to enhance them.”


Terzini, an experienced design engineer with expertise in pharmaceutical dispensing systems and packaging, joined the company in November after serving as chief technical officer of United States Pharmaceutical Distributors.

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Q&A: Central-fill Innovation — Doyle Jensen, 
Innovation Associates

BY DSN STAFF

Sometimes shifting trends in business, society or technology can seem to crystallize, giving business leaders who are paying attention a clear view of a market’s future direction and forcing a fundamental realignment of their companies’ strategy. Such was the case four years ago for Innovation Associates, a leading pharmacy technology provider and the company behind the PharmAssist robotic automation system.

Innovation’s adaptation began roughly four years ago, when company leaders realized that the market for robotic dispensing systems at the retail pharmacy level had reached the point of near saturation. Both Innovation and the chain pharmacy retailers it dealt with began to realize that it made far more sense to invest the big bucks for robotic dispensing systems in a more cost-effective way: via centralized filling “hubs” that would offload the mechanics of prescription filling for many maintenance and high-use medicines.

In response, Innovation shifted its focus to helping pharmacy operators set up and automate their own off-site dispensing hubs, where their investments in pharmacy automation could be spread over a wider base of stores. In November, Drug Store News spoke with Doyle Jensen, EVP sales and marketing for Innovation and one of the architects of the company’s new strategy.

Drug Store News: First, give us a little history of the company and what led to the change in your business model.

Doyle Jensen: We were founded in 1974 as an engineering company … in aerospace and other high-tech projects. The pharmacy applications began in 1993, when we were involved in the Las Vegas Medco [Health] facility. We launched exclusively into pharmacy in 1997, and unveiled our first retail pharmacy automation product at the NACDS [Pharmacy and Automation Conference]. In 2005, we entered the high-volume arena, building a number of central-fill facilities for the U.S. Air Force.

I joined the company four years ago, and … we began to step back and strategically look at the market to see where it was going and how we should position ourselves. We saw a shift away from robotic installations at retail stores in the chain space.

DSN: How did this strategic revamp change the way you approached the pharmacy automation market?

Jensen: We invested heavily in high-volume systems. And we’ve done a lot of groundbreaking work for a lot of new customers. The market has changed. Four years ago, we looked at it and realized that if we’re just in retail robotics, we’re going to be out of business at some point, because there’s not going to be enough business to support one company, let alone four.

There’s not one retail chain among the top 20 in the United States that has an open [request for proposal] for robotic placements at retail. We saw the chains looking for higher returns on their technology investment and trying to reduce their fixed costs per prescription. Most chains today are at least in the process of evaluating central fill — if they’re not already contracting, constructing or expanding their existing facilities.

DSN: So how should a chain approach this for the best return for its pharmacy automation investment?

Jensen: When you look at deploying technology, you have to look at your fixed cost per script. And when you move to a high-volume, central-fill model, you have a direct effect on that fixed cost, because the technology can be leveraged across such a broader population of prescriptions. When you process a prescription in a robot at a pharmacy, you’ve got a pretty large expenditure and investment sitting in that pharmacy that is going underutilized. For example, our retail robots can fill 240 prescriptions an hour. How many pharmacy chains do you know that do 240 scripts an hour in one store?

DSN: How much impact on dispensing costs can chains realize by shifting to centralized script processing and by investing their big technology bucks there?

Jensen: An efficiently run central fill can lower the labor cost per prescription to below a dollar. We see a labor cost between 30 cents and 70 cents per prescription. The total loaded cost, including capital, transportation of prescriptions to store and other variables can be $1.80 to $2.50 per prescription.

DSN: That obviously depends on how many stores the hub pharmacy is servicing.

Jensen: Exactly. And the lower end of that cost scale is with the higher-volume central-fill facility. We designed a system for a chain earlier this year — a very large facility, with 100,000-plus prescriptions filled per day — that had some of the lowest cost variables I’ve ever seen. Honestly, the labor cost [per script] was a quarter.

DSN: What about other costs like transportation?

Jensen: Your transportation costs generally can be consolidated with existing routes through your wholesaler — or you can piggyback on your existing distribution facilities and network. You’re seeing your stores — or your distributor is seeing your stores — on a regular schedule already. You may have to augment that schedule with a daily delivery because you’re going to have to have that. But different chains have approached that with different models.

DSN: Besides the obvious benefit — lowering per-script costs — what else does off-site dispensing bring to the chain?

Jensen: It’s minimizing loss and waste, and inventory carry. In both of those areas, seldom-used inventory would be carried at the central-fill facility. Secondly, many meds today may not be commonly carried items. So the pharmacist fills a prescription for, say, 20 tablets out of a bottle of 100, and prior to ever getting another prescription from a patient for that rarely prescribed med, the bottle expires on the shelf.

DSN: That’s probably a fairly common occurrence.

Jensen: It happens quite a lot. And there are other areas of waste: for instance, for a script written [dispense as written] for a specific brand. One pharmacy exec told me … there’s millions of dollars wasted every year across [his] chain just in specific brand requests. You have thousands of these bottles sitting on the pharmacy shelves, and when they hit their expiration date, they’re done.

DSN: So you’ve got inventory just ticking away toward expiration at store level.

Jensen: The amount of inventory just sitting across hundreds or thousands of stores, versus just at central points, can mean you can do your order turns so much tighter. You won’t have to carry 1,000-count bottles in 1,000 pharmacies. You can decrease that to, say, 100 pills per pharmacy, and carry the bulk of those prescriptions at the central site. And you can set up just-in-time inventory, because you know what your cycles are on a daily basis.

DSN: This also could make it more feasible for a chain to get into specialty pharmacy. It’s a more efficient use of inventory dollars.

Jensen: Exactly. It allows the chain an effective expense model to get into specialty. [The chain] can enter that high-profit business by only carrying those meds at one point, whereas if it carried them in its stores, it’s way too much inventory cost.

DSN: Is there a way for independents to compete in this model?

Jensen: The wholesaler model is changing drastically, … [and at least one major wholesaler has] built a central fill and will offer that service to the independent pharmacies it supplies drugs to. Also, an independent that has multiple stores can employ this model in a smaller format, where you make one store your central fill for refills and distribute those out to other locations, and only buy technology for one location. Or could an independent collaborate with other independents in its trade area? Either way, it’s spreading the cost over a number of stores.

DSN: Are there interim steps a smaller chain or independent can take at this point to upgrade its automation, short of adopting central fill?

Jensen: The other area of growth is in semi-automated technology. You do have chains that are actively investigating and deploying … semi-automated pharmacy technology. It’s low cost [and] low-footprint, the ROI model is easier to obtain and it’s generally complementary to a central-fill operation.

DSN: Does Innovation have a product to fill that niche?

Jensen: Smart Cabinet was our entry to the market in 1997. Now we have a next-generation model. It’s basically the same size and cost, but it’s been technologically upgraded, with larger user interface [and] easier workflow process; we listened to our customers and made some modifications. It’s basically [automating dispensing for] your top 50 movers, which generally comprise about 31% of your daily prescription fills in a pharmacy. So it’s a tight formulary for your fastest movers.

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