Big data is a driving force in the digital age, and when it is utilized effectively, it has the ability to transform healthcare quality, costs, and delivery.
Like many other healthcare providers, today’s independent pharmacists are certainly no strangers to data. Pharmacies collect a huge volume of data from various sources, including patient data, prescription data, supply chain data, clinical data, insurance data, and more. As the role pharmacy plays in healthcare continues to evolve and expand, so will the sheer amount and variety of the data they collect.
Of course, data is only useful when you make smart use of it.
By leveraging pharmacy analytics software to access actionable data and drive meaningful change, independent pharmacies can:
- Identify opportunities to plan future business endeavors
- Pinpoint “low-hanging fruit” areas for improvement
- Ultimately work toward becoming a New Era Pharmacy powered by data insights
Here’s how you can utilize pharmacy analytics software to support clear and effective business planning efforts and create a data-driven roadmap to success.
Tracking and Analyzing Key Performance Indicators
One of the biggest benefits to using pharmacy analytics software is the ability to define and measure success. With the right business intelligence tools, you can analyze both internal and external key performance indicators (KPIs) to assess your performance, set your goals, and track your progress toward them over time.
Some of the most commonly tracked pharmacy KPIs include metrics related to:
- Prescription volume and margins
- Operating and inventory expenses
- Medication adherence rates
- Patients and prescriber data
- Payers and reimbursement
You can also utilize data analytics software to compare KPIs with industry benchmarks to see how you stack up to big-box and independent pharmacy competitors. For example, if you recognize that other independent pharmacies see higher revenue per prescription or refill frequency, you’ll likely want to make changes to improve those metrics and better match up to your competition.
Developing and Deploying a Financial Roadmap
Another great way to utilize pharmacy analytics software is for the development of a strategic plan and budget each year. Using business intelligence tools, you can gain a holistic perspective and true bird’s-eye view of your pharmacy finances year-over-year, to inform your budgeting and business decisions.
You can use pharmacy analytics software to learn where you’re over- and under-spending and then adjust your budget and operations accordingly. For instance, if data reveals that you’re consistently selling certain medications at a loss, you can determine why that is happening and how to improve your prescription margins.
Performing and Reviewing Gap Analysis Exercises
Pharmacy analytics software also comes into play when you’re looking to perform a gap analysis exercise. In other words, you can use pharmacy data to identify gaps in care and then intervene as needed to help improve adherence, engagement, and outcomes.
Missing patients with a high risk of non-adherence? No problem! With the right data, you can spot it early on and proactively reach out to intervene. As a result, you can increase your reimbursement with better adherence and outcomes, while also improving your quality of care in the process!
In addition to targeted intervention opportunities, you can introduce new revenue streams based on care gaps. For example, if you notice that many of your patients who are over 60 have not yet had a shingles vaccine, you can add it to the list of immunizations offered at your pharmacy and offer it to qualifying patients when they’re at the counter picking up prescriptions.
Assessing and Improving Operational Efficiency
Using pharmacy analytics software arms you with increased visibility into your business’ operational expenses, like overhead costs and man hours, to pinpoint cost-saving opportunities and identify different ways you can streamline pharmacy workflows to control costs and improve operational efficiency. This way, you and your pharmacy technicians can work as efficiently as possible and automate the more time-consuming manual workflows to free up time to spend with patients.
You can also identify opportunities to save on supply costs. For instance, if data shows that you’re losing a lot of money to expired medications, you can revamp your supply chain strategy, increase on-time refills, and take action to reduce unnecessary waste. Or, if data reveals that pharmacy staff are spending too much time chasing down unpaid medical claims or fighting claim denials, you might benefit from investing in a tool like MEDBILL to streamline medical billing workflows and increase timely reimbursements.
Harnessing the Power of Pharmacy Data to Improve Your Business
These are just a few examples of how independent pharmacists can use data insights to inform their decision-making and improve the health of their pharmacy business. That said, data needs to be standardized and laid out in a way that’s easy for pharmacists to analyze and comprehend. That’s where modern pharmacy analytics software comes in.
With the help of pharmacy analytics software, you can harness the power of data to:
- Make informed decisions
- Develop clear and proactive business plans
- Improve your clinical, financial, and operational performance
In fact, there’s no limit to what you can accomplish when you use data to power your business planning efforts. As a result, you can take better care of your patients and provide financial security for your pharmacy business. How’s that for a win-win?
Are you curious about pharmacy analytics software and how you can use it for data-driven business planning? FDS MYDATAMART helps independent pharmacies uncover hidden data insights and unlock the power of that data to drive stronger performance. Schedule a demo for a firsthand look at how MYDATAMART can help your pharmacy.