Drug Topics - December 10, 2007 - (Page 26)

26 DRUG TOPICS DECEMBER 10, 2007 www.drugtopics.com Cover Story Hospital pharmacists optimistic for 2008 Michael Barbella ospital pharmacists certainly are an optimistic bunch. Despite cuts to Medicare reimbursements, more troubles with Medicare Part D, and calls for better patient safety measures, health-system pharmacists remain remarkably upbeat about their financial prospects for 2008. Eight out of 10 hospital pharmacists who responded to an exclusive Drug Topics survey said they expect 2008 to be a good, very good, or DT CAPSULE excellent business year for their pharmacy. The same number of pharmacists said they anticipate that 2007 will be a financially sound year, up from 78% in 2006. “Business is up. More services have been added. More consultants have been added,” one respondent proudly proclaimed. When pressed for an explanation for their rosy 2008 outlooks, some health-system R.Ph.s said they based their prediction on demographics, while others simply took a cue from history: “We have no problem filling beds,” wrote one confident respondent. “We’re always [at] full house.” Pharmacists’ high hopes for 2008 weren’t just confined to net revenue, however. Our survey shows that respondents have great expectations for their salaries, drug budgets, and their chances of staying within their department’s budget. Seventy-one percent of the 222 health-system pharmacists who responded to the survey said they expect their salaries to increase next year. In 2006, 68% predicted a salary hike. Pharmacists were just as optimistic about technicians’ salaries: 59% said they expect techs to be better paid next year. When asked to estimate the salary hikes for themselves and technicians, pharmacists who expected increases predicted a 4% raise in their own salaries and a 3% jump in technicians’ pay. Health-system pharmacists are hoping those salary increases will help pave the way for staff increases. Thirty percent of respondents expect the number of pharmacists in their department to increase next year, while 5% said it will drop. Similarly, 27% expect the number of technicians in their department to increase, while 3% said it will drop. Pharmacists who expect staff increases estimate their own ranks and the number of technicians will each grow by two; those fearing cuts expect a decrease of two staff pharmacy positions and one technician slot. H Balanced budgets Nearly three-quarters of respondents said they will “definitely” or “probably” stay within their budget this year. The 25% who said they will “probably not” or “definitely not” stay within their budget gave various reasons for going over their spending plans, including oil price hikes, a poor economy, staffing shortages, and excessive drug costs. “Brandname drugs keep increasing their cost with no justification. Not a lot of brand-to-generic switches this year,” wrote one pharmacist. One respondent even blamed the cost of rattlesnake antivenin for going over budget. (Antivenin is going for $2,000 to $3,000 a vial these days, but at least 20 vials are needed for treatment, according to experts.) The average total hospital pharmacy budget in 2007— including drugs, personnel, and miscellaneous expenses— ranged from $2 million to $5 million, according to the survey. Seventy-three percent of the survey’s respondents said they expect the drug portion of their budgets to increase next year, while 2% anticipate a cut. But both groups expect their budgets to fluctuate by the same amount: 10%. 80% of health-system pharmacists expect an excellent, very good, or good business year for their pharmacy in 2008. Top news For the past two years, Medicare Part D has been the issue that most affected health-system R.Ph.s. But this year, Part D was eclipsed by a summer decision by CMS to deny hospitals Medicare reimbursements for certain hospital-acquired conditions. Sixty-nine percent of respondents said CMS’ decision not to cover the costs of “preventable” conditions, mistakes, and infections resulting from a hospital stay had the most impact on them this year. Part D was not far behind—66% thought that issue was most influential. Some respondents, however, believed neither issue was that important: 40% said the AMP final rule had the biggest impact on pharmacy, while 36% felt a TV exposé on prescription errors wielded the most powerful influence on the industry. Challenges ahead Even though most health-system R.Ph.s surveyed expected their pharmacies to have a good business year, many are still concerned about finances. When asked to list the biggest business challenge for their pharmacy in 2008, respondents’ answers mostly revolved around money. “Continuing to provide services in light of decreased reimbursement,” said one pharmacist. “Making a profit while giving out loads of free health care,” replied another. Medicare also made the list of top challenges for 2008. Wrote one respondent: “Medicare affects us more than any other insurance, so that is always our biggest worry.” DT http://www.drugtopics.com

Table of Contents Feed for the Digital Edition of Drug Topics - December 10, 2007

Drug Topics - December 10, 2007 Latebreakers Latebreakers in Depth Letters Health-System Edition - Cover Story Clinical Practice Professional Practice Special Report Technology Community Practice Unraveling Medicare 150 Years of American Pharmacy Rx Care In the Pipeline Cover Story: Fair or foul? Self-Care Chains and Business Government and Law Continuing Education: Natural Medicines for Bone Health New Products Advertisers Index Classified Viewpoint

Drug Topics - December 10, 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.