Comprehensive Solution Saves Hospital 30% on Rx Costs

The Challenge

A hospital in South Florida with 3,500 member lives had an annual pharmacy benefits cost of $4.5 million. The hospital wanted to optimize its prescription drug program to achieve its financial goals of enhancing margins and its human resources goals of improving employee satisfaction and reducing absenteeism.

$4.5M

annual pharmacy spend

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The Solution

RxBenefits provided a comprehensive, conflict-free pharmacy benefits solution that addressed both the contractual and clinical challenges the hospital was facing with its previous PBM arrangement. RxBenefits conducted a Comprehensive Pharmacy Analysis of the plan’s previous arrangement to identify contract red flags and pinpoint the major trend drivers impacting costs. Hospital-focused strategies were implemented on top of that to leverage the hospital’s own cost of goods advantage and in-house resources.

Independent Contract and Clinical Oversight

  • Accessed aggregate purchasing to secure competitive, transparent pricing terms
  • Remedied pricing deficiencies and contract misalignments

Tailored Hospital Strategies

  • Created a channel-agnostic benefit design
  • Provided 340B and GPO support with “best-of” pricing
  • Delivered population and disease management to optimize care
  • Engaged the employee physician community

The Results

Overall Optimization Results:

Through a more competitive contract and the strategic support of a transparent pharmacy benefits partner, the hospital gained greater insight and independence over its prescription drug spending. RxBenefits’ comprehensive solution helped the hospital net a trend of 0% year-over-year, compared to a national trend of 10%.

24.4%

contractual savings ($1.1M)

5.5%

additional savings from clinical oversight ($250K)

$ 1.3M

Combined Savings (30%)