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Dr. Raymond J. Fabius, MD Dr. Raymond J. Fabius, MD President & Chief Medical Officer President & Chief Medical Officer CHD Meridian Healthcare CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ Leadership™ The results of collaboration between The results of collaboration between primary care & pharmacy at the workplace primary care & pharmacy at the workplace

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Page 1: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Dr. Raymond J. Fabius, MDDr. Raymond J. Fabius, MDPresident & Chief Medical OfficerPresident & Chief Medical OfficerCHD Meridian HealthcareCHD Meridian Healthcare

Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™

The results of collaboration between The results of collaboration between

primary care & pharmacy at the workplaceprimary care & pharmacy at the workplace

Page 2: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved2

What is the What is the Asheville project?Asheville project?

• Pilot project to explore the role and value of pharmacists as care managers

• Started in Asheville NC in 1997–NC Association of Pharmacists (NCAP) approached City of Asheville–NCAP committed to recruit and train community pharmacists –City of Asheville agreed to offer wellness program to city employees–Mission St. Joseph would coordinate the program

Excerpted from presentation by: Amy Valley, Pharm.D.National Director of Clinical Affairs Pharmacy Healthcare SolutionsBarry A. Bunting, Pharm.D.Clinical Manager of Pharmacy Services

Mission St. Josephs Health System Asheville, NC

Page 3: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved3

Components of the Asheville project:Components of the Asheville project:

• Roles of the treatment team

– Physicians diagnose and initiate treatment plans

– Educators educate– Patients self-manage 24-7– Pharmacists coach patients

to adhere with treatment plan, regularly assess, monitor, and recommend changes when the treatment plan isn’t working.

– Pharmacies provide convenient access/expert service.

– PBMs/TPAs facilitate billing & provide data for outcomes.

– Payers encourage participation and provide incentives.

• Pharmacist’s commitment

– Participate in certificate training

– Agree to counsel enrolled patients (1-on-1) up to 1x/mo

– Contact patient to arrange mutually agreeable time to meet

– Monitor compliance/adherence, side effects/adverse events, OTC use.

– Assess/reinforce education– Assess efficacy of tx

regimen (download meters, check blood pressures, foot exams)

– Communicate encounter findings/recommendations to physician

– Refer patient to Dr. when indicated

Pharmacists as Pharmacists as collaborating collaborating members of members of

treatment teamtreatment team

Excerpted from presentation by: Amy Valley, Pharm.D.National Director of Clinical Affairs Pharmacy Healthcare SolutionsBarry A. Bunting, Pharm.D.Clinical Manager of Pharmacy Services

Mission St. Josephs Health System Asheville, NC

Page 4: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved4

8

6.66.7

6.97.3

6.7

5

6

7

8

9

Prior to Program 1st yr Program 2nd yr Program 3rd yr Program 4th yr Program 5th yr Program

n=136 n=81* n=55* n=39* n=26 n=16*

121

108

113

106104

95

70

80

90

100

110

120

130

LDL (AVG) PRIOR TO PROGRAM & EACH OF 5 YEARS OF PROGRAM

Prior to Program 1st Yr* 2nd Yr* 3rd Yr* 4th Yr 5th Yr

5.76.0 5.75.8

8.5

12.6

0

2

4

6

8

10

12

14

Prior to Program 14 mo. 2 yrs 3 yrs 4 yrs 5 yrs

AVERAGE SICK DAYS/YEARPRIOR TO PROGRAM & EACH YEAR FOR

5 YEARS OF PROGRAM

$4371$4291

($7808)$7042

$4025$3795

$3932

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Prior to Programn = 164

1997n = 47

1998n = 72

1999n = 131

2000n = 147

n =

2001n = 174

All plan employees

National Avg. all employees

Improved outcomes of Asheville project Improved outcomes of Asheville project

HgbA1c; LDL; sick days; medical costsHgbA1c; LDL; sick days; medical costs

Excerpted from presentation by: Amy Valley, Pharm.D.National Director of Clinical Affairs Pharmacy Healthcare SolutionsBarry A. Bunting, Pharm.D.Clinical Manager of Pharmacy Services

Mission St. Josephs Health System Asheville, NC

Page 5: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved5

The power of The power of collaboration:collaboration:

Primary care & Primary care &

pharmacy under pharmacy under one roofone roof

• Pharmacy starts with a pen

• Pioneered Model in 1984 at Goodyear

• 30+ Pharmacy Locations• Corporate Support

– Corporate Pharmacists– Pharmaceutical and

Therapeutics Committee

• 100 On-Site Pharmacists

A doctor and pharmacist A doctor and pharmacist working together serving working together serving

a single communitya single community

Page 6: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved6

Human Capital / Benefits Impact

Cost

Savin

gs &

Clin

ical In

ten

sit

y

Medication Adherence

Split Pill

FormularyGenericsOTC

Step Therapy

Medication Safety

Disease Management

Improved Prescribing

Scorecard &Pay for

Performance

PrescribingGoals &

Feedback

Pharmacy Administration

Clinical Pharmacy

Medical PharmacyInterface

PharmacyClinical

Leadership

Drug to

Disease

Drug to Disease

The integration of primary care & pharmacy: The integration of primary care & pharmacy: The power is in the prescribing – dispensing collaborationThe power is in the prescribing – dispensing collaboration

Page 7: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved7

Best results come Best results come through through

collaborationcollaboration

Control of Control of Pharmacy starts Pharmacy starts

with the with the Physician’s penPhysician’s pen

• PBM - Reduced pharmacy costs via better RX therapeutic utilization– Brand-to-generic– Brand-to-OTC– Preferred Products– Half-tablet programs– Step Therapy

• Pharmacy Clinical Leadership™ Improved quality of pharmacy services– Compliance with Evidence Based Medicine

Guidelines• Better Prescribing

– Medication Adherence– Medication Safety

• Mitigate Drug Incompatibilities– Drug to Drug– Drug to Disease

PBM vs. Pharmacy Clinical Leadership™PBM vs. Pharmacy Clinical Leadership™

Page 8: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved8

Pharmacist as Pharmacist as health educatorhealth educator

• Consult on every new prescription (side effects, dietary, drug-to-drug interaction)

• Consult on disease states and • Promote medication adherence and

treatment compliance on every refill • Participate in health fairs • Poly-pharmacy evaluations• Encourage generic, formulary, & half-

tablets utilization• Design pharmacy posters & prescription

bag educational pieces• Teach programs on herbal,

homeopathic and OTC products

Page 9: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved9

Patient / consumer engagementPatient / consumer engagement

Quarterly Mailer

Good Health CalendarPharmacy Bag Stuffer

Page 10: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved10

• Much higher Generic Dispensing Rate for PC/ Rx

• Above industry average/ retail-PBM average

• Affects COMMUNITY providers as well

• Each % point of GDR ~ $100-$200K/ year incremental savings (depending upon volume)

Greater use of generic medications:Greater use of generic medications:Significant savingsSignificant savings

Page 11: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved11

Program Savings

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Q1 2006 Q2 2006 Q3 2006

Avoided Cost from OTCPrograms

Avoided Costs from HalfTab Program

Generic Prescribing %

68%

53%

0%

10%20%

30%

40%

50%60%

70%

80%

CHDM Doctors Community Doctors 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Loratidine Participation Prilosec Participation

RX Only Average

PCRX Average

Missed Opportunities

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

PC/RX RX alone

MissedOpportunities

Primary care integration with pharmacy saves money: Primary care integration with pharmacy saves money: Improves OTC & generic usage and enhances split tab programsImproves OTC & generic usage and enhances split tab programs

Page 12: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved12

Split-pill programSplit-pill program Cutting costs by nearly 50%Cutting costs by nearly 50%

Lipitor 20 mg

90 Tabs = $360

1 Tab = $4at an online pharmacy

Lipitor 40 mg

90 Tabs = $386

1 Tab = 4.28

Lipitor 20 mg –

1 Tab = $2.14

Page 13: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved13

½ tablet program ½ tablet program utilizationutilization

Page 14: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved14

Influencing external

prescribing habits

Average Cost per Prescription Anti-Inflammatory Drugs

Generic NSAIDs $ 9.65

Cox IIs $ 142.16

Anti-Inflammatory Drugs – Utilization

Year 1 Year 2

Generic NSAIDs 41% 57%

Cox IIs 59% 43%

•Information sharing and education (counter-detailing) for clinicians as a method to reduce impact of any pharmaceutical representative information

•Quarterly report cards on outside prescribers’ drug prescribing habits

•Calls to providers to encourage switching to a formulary-preferred product, when permitted by employee

Page 15: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved15

Meeting Meeting prescribing goalsprescribing goals

On-site On-site pharmacies vs. pharmacies vs.

community retail community retail pharmaciespharmacies

Initiative

1 Total Generic > 60% 60.00% 66% Yes 77% Yes 63% Yes

1.a Generic Beta Blockers > 70% 70.00% 65% No 82% Yes 61% No

1.b Generic Calcium Channel Blockers > 50% 50.00% 53% Yes 59% Yes 52% Yes

1.c Generic Anti-Inflammatory > 80% 80.00% 66% No 70% No 65% No

1.d Generic SSRIs > 80% generic 80.00% 97% Yes 99% Yes 97% Yes

2a Antibiotics L1 > 60% 60.00% 49% No 77% Yes 43% No

2b Antibiotics L2 < 25% 25.00% 24% Yes 15% Yes 26% No

2c Antibiotics L3 < 15% 15.00% 26% No 8% Yes 22% No

3 Half Tablet Program > 80% 80.00% 85% Yes No No

4Prevacid & Zegerid > 75% all Branded Rx PPIs 75.00% 100% Yes 100% Yes 100% Yes

5OTC Prilosec & omeprazole > 60% all approved sites 60.00% 67% Yes 75% Yes 64% Yes

6 OTC Loratadine > 40% all approved sites 40.00% 41% Yes 71% Yes 28% No

7 Novolin Insulin > 65% 65.00% 49% No 73% Yes 46% No

8 Generic HMG's > 60% 60.00% 11% No 10% No 12% No

# of Goals Met (8 Total) 6 8 3

Goal MetQ4 2006 % Total Rx'sGoal

Goal Met

Q4 2006 % Offsite Rx's

Goal Met

Q4 2006 % Onsite Rx's

Page 16: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved16

Aligned with the “Pay 4

Performance Movement”

35%

30%

20%

10%5% Clinical Care

PrescribingPractices

Utilization ofServices

PatientSatisfaction

Site SpecificGoals

With careful assessment & benchmarking; our primary care With careful assessment & benchmarking; our primary care physicians’ are rewarded for effectiveness & efficienciesphysicians’ are rewarded for effectiveness & efficiencies

Page 17: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved17

The power is in the The power is in the integration:integration:

Evidence-based Evidence-based

prescribing prescribing practices generate practices generate

valuevalue

Figure 2Antibiotic Line and Average Cost: Workplace Treated v.

Community Treated

0

10

20

30

40

50

60

70

% 1st Line % 2nd Line % 3rd Line Average Cost/Rx($)

Workplace Treated

Community Treated$20

Better Care – and a Potential Savings of $1.5 Million for Antibiotics Alone

Page 18: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved18

Medication patient safety: Significantly better than retail pharmacyMedication patient safety: Significantly better than retail pharmacy(Based on 1 million prescriptions filled over 5 year contract)(Based on 1 million prescriptions filled over 5 year contract)

• With a retail error rate recently reported in USA Today of 1/1000

- Expect 1000 errorsAt $2000 per ADE (IOM) = $2 Million4 Hospitalizations at 10,375 each (IOM)24 ER visits at $ 1444 each (IOM)

• With our error rate of 3/10000 (prior to implementation of new IT platform)

- Expect less than 300 = $600K- 1 Hospitalization

PATIENT SAFETY COST SAVINGS = 1.4 MillionPATIENT SAFETY COST SAVINGS = 1.4 Million2% of all hospitalizations are due to medication misadventures2% of all hospitalizations are due to medication misadventures

0

0.005

0.01

Error Rates Comparison

RetailRXPC/ RX

Page 19: Dr. Raymond J. Fabius, MD President & Chief Medical Officer CHD Meridian Healthcare Beyond Pharmacy Benefit Management: Pharmacy Clinical Leadership™ The

Copyright © 2008 CHD Meridian Healthcare, LLC - All Rights Reserved19

Leveraging the “Trusted Clinicians”Leveraging the “Trusted Clinicians”Physicians, PharmacistsPhysicians, Pharmacists, Nurse Practitioners, Nurses, Therapists, , Nurse Practitioners, Nurses, Therapists,

Sports Physiologists, Health Coaches, Care Managers, Personal TrainersSports Physiologists, Health Coaches, Care Managers, Personal Trainers

Wellness Screenings

Immunizations Health Coaching

HRA

Illness Drug ManagementBehavioral Health

Disease/Case Management

Environment Smoking Ban

Traditional Occ Health Safe Workplace

Cafeteria

Managing the Medical Community

Specialists Tests

Hospitals Treatment Options

Fitness Work Readiness

Ergonomics Work Hardening Return to Work