From surgical robots to telemedicine, healthcare is experiencing technological progress that has the potential to improve patient safety and elevate clinical care. However, one area that often flies under the radar is the health system pharmacy. Despite advances in medication management technology, many health systems still struggle with visibility to their medication inventory and use.
Studies show that for some organizations, less than 1% of their medication inventory is visible through electronic systems. As a result, many pharmacy teams rely on cumbersome, manual processes to track and manage their inventories, which can put unnecessary strain on staff and introduce opportunities for human error.
As the industry continues to embrace innovation, health system pharmacy cannot be left behind. Pharmacy leaders must have clarity on the inventory they have on hand and where it is located in the health system to ensure the right-on-time medication delivery that optimizes patient outcomes.
Care Setting Expansion, Tech Sprawl Increase Medication Inventory Complexity
The retail industry has been leveraging advanced inventory management techniques for years, so why aren’t they as common in healthcare? The answer lies in how today’s health systems are evolving. As virtual care and growing outpatient options help shorten hospital stays, medications are moving through more care settings than ever before. Sometimes, these medications are delivered to and administered in facilities that aren’t fully integrated with the broader health system (e.g., clinics, rehabilitation centers, long-term care facilities, etc.). This makes it challenging to have a clear, end-to-end view of inventory from when a patient is admitted to the moment they’re discharged. Furthermore, the mix of centralized and decentralized medication distribution adds extra layers of complexity.
Many hospitals are also juggling a patchwork of new digital solutions, standalone dispensing tools, and outdated incumbent inventory management software systems that don’t always work well together. This “tech sprawl” creates data silos, making it difficult to assess medication levels enterprise wide.
Industry-wide drug shortages are another major barrier to efficient medication inventory management. These supply chain disruptions not only require agility in medication decisions, but also hamper demand forecasting, utilization assessment, and procurement optimization. This often leads hospitals to stockpile medications, which can result in excess waste and higher costs.
Consolidation, Connectivity, and Automation Drive Inventory Optimization
Closing visibility gaps starts by tackling fragmented technology. Ideally, pharmacy teams should be able to easily access key inventory details like which medications are about to expire, where stockouts are occurring, and where medications are stored in every corner of the health system. This requires careful system consolidation and connectivity that enables all medication inventory data to be accessible from a single location. TidalHealth is a great example of what’s possible. By using inventory management software to cut down on manual work and bring their medication data into one place, they were able to reduce stock-outs by 65% and reach 90% medication visibility across their system.
Automation also plays a crucial role in optimizing inventory management. For example, by integrating Automated Dispensing Cabinets (ADCs), with central pharmacy software, the pharmacy department can access real-time cabinet-level dispensing and inventory information. This insight can automate cabinet refills and alert pharmacy technicians when specific NDCs are running low to help providers proactively address potential stockouts. Additionally, with enhanced analytics and digital visibility, hospitals can accurately forecast medication needs based on predicted patient acuity and evolving care trends. Hospitals like Archbold Medical Center are already seeing these benefits firsthand, achieving more than $300,000 in savings within the first nine months of adopting automated inventory management practices.
Digital Inventory Visibility and the Autonomous Pharmacy Vision
The real impact of full digital visibility into health system medication inventory extends far beyond logistics. When pharmacy teams are freed up from manual inventory management tasks, they are empowered to work at the top of their licenses. This results in more direct patient interactions, increased collaboration with nurses and physicians, and ultimately, enhanced patient outcomes.
Ultimately, a technology-driven pharmacy strategy is essential to enabling health systems to advance toward the autonomous pharmacy vision, where safety, quality, and human potential are fully realized.
To explore technology solutions that can help optimize your medication management inventory, visit omnicell.com.
