FridayOL

The specialty drug market is booming, but its rapid growth brings significant challenges for pharmacies. Managing complex inventory, ensuring patient access, and minimizing waste are constant concerns. In this episode of the Healthcare Insider Podcast, we delve into a game-changing solution: smart consignment technology.

Joining us are James Roof, Director of Strategic Distribution Services at Cardinal Health, and Diana Castillo, National Consignment Executive. They share their expertise on how consignment models, coupled with innovative Radio-Frequency Identification (RFID) technology, are transforming specialty drug inventory management.

The Inventory Management Struggle is Real

Specialty drugs are often high-cost, high-value medications requiring strict temperature controls and specialized handling. Traditional inventory management methods often fall short, leading to:

• Stockouts: Delaying patient treatment and causing frustration.
• Overstocking: Leading to expiration and significant financial losses.
• Waste: Unused medication contributing to environmental concerns and increased costs.

Consignment: A Partnership for Success

Consignment models shift the risk of inventory ownership from the pharmacy to the manufacturer (in this case, Cardinal Health). This means the pharmacy only pays for the drugs when they are dispensed to patients. This model offers several immediate benefits:

• Reduced Financial Burden: Frees up pharmacy capital for other critical investments.
• Improved Cash Flow: Payment is tied directly to patient treatment.
• Access to a Wider Range of Specialty Drugs: Pharmacies can offer more options without the upfront inventory costs.

RFID Technology: The Smart Layer

But consignment is just the beginning. Cardinal Health is leveraging RFID technology to take inventory management to the next level. RFID tags attached to each drug provide real-time visibility into location, temperature, and expiration dates. This data allows for:

• Precise Tracking: Know exactly where each drug is at all times.
• Automated Replenishment: System automatically reorders drugs as they are dispensed, preventing stockouts.
• Enhanced Security: Reduces the risk of theft and diversion.
• Improved Temperature Monitoring: Ensures drug integrity and patient safety.

Benefits Beyond the Bottom Line

While the financial benefits are significant, the impact of smart consignment technology extends beyond the bottom line. By streamlining inventory management, pharmacies can:

• Improve Patient Access: Ensure patients receive their medications promptly.
• Reduce Medication Errors: Enhanced tracking minimizes the risk of dispensing errors.
• Focus on Patient Care: Free up pharmacy staff to focus on providing exceptional patient service.

Looking Ahead

As the specialty drug market continues to evolve, smart consignment technology will become increasingly essential for pharmacy leaders. Listen to this episode to learn how Cardinal Health is helping pharmacies navigate these challenges and deliver better patient care.

Key Takeaways:

• Consignment models reduce financial risk and improve cash flow for pharmacies.
• RFID technology provides real-time visibility and automation for inventory management.
• Smart consignment technology improves patient access, reduces waste, and enhances pharmacy efficiency.