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Exam 2
Lecture 1- Purchasing
70
Architecture
5th Grade
02/03/2014

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Term
what is the basis for the hospital's purchasing stratgey?
Definition
drug formulary
Term
do purchasing/inventory control systems differ or stay the same between hospitals?
Definition
differ (bc drug formularies diffeR)
Term
purchasing volume depends on-
Definition
hospital size
Term
purchasing strategy depends on- 2
Definition
patient care services
priotires for inventory management
Term
the PIc repsonsiblites for pruchasing strategy is determiend by?
Definition
TSBP Class C
Term
the _ is respnisible fr procurement and storage of drugs?
they can get input from who?
Definition
PIC
staff relative to the responsbility
Term
the _ is repsonsible for determining specificaitons of all drugs rpocured by facility
Definition
PIC
Term
regardless of where drugs are used or stored in hospt, the PIC is in chare of-2
Definition
procurement
specificaitons
(ex: for radioilogy, for nusring floor, )
Term
Which agency best tells the PIC HOW to procure drugs
Definition
ASHP (NOT TSBP)
Term
PIc's _ can be delagtes elswhere
Definition
authority
(NOT responsibility)
Term
PIC must actively act in devolping-3
Definition
purchasing system
policies for purchasing
monitring/assessment
Term
PIC authority must be negotied with who-2
when is it hard to do this?
Definition
hospital ADMin
medicla staff
govt owned/coproate owned
Term
pharm purchasing system has 3 options for strucutre:
Definition
centralized in purchasing dept
assigned to pharm department
combo of both
Term
strucutre chosen for the purchasing depedns on _ preference, _ capabilities, _ posturing, or -
Definition
hospt Admin
pharmacy dept
political
regulaotry requirements
Term
pharmacy dept need to be able to provide what for the purchase system-4
Definition
space for storage
equipement for speical sotrage
accounting support
staff with expertise to mamange purchasing
Term
is the PIc respn for X-ray contrast media sotred by radiology since it was purchased outside of pahramcy control?
Definition
yes, no matter where drug stored or purchased the PIc is ultiemalty resp
Term
the pahramcy dept must purchase and store all drugs used within hospt?
Definition
false- drug purchasing policy estb by PIC, but PIc can delegate this authority
Term
group purchasing orgnaizations covers a wide variety of
Definition
hospital supplies
Term
deinfiiton: leveraged purchasing power thru org of hospt systems
Definition
group purchasing organizations
Term
who ngoitaes with manufactures for best price on meds for its memebrs?
Definition
GPO (group purch. organizaiton)
Term
true false/ bigger GPO better med prices?
Definition
true
Term
GPO monitors and reports what-2
Definition
changes in market place and manufacture contracts
Term
advatages for GPO memebrship-5
Definition
best prices to all members
p;urchasing power is multiplied
saves negotiating time
reports changes
broad range of non-drug contracts
Term
disadvtg for GPO membership-5
Definition
particiaption not voluntary
drug on contract not hospt drug of choice
still solict bids for non GPO drugs
counter offers for multi source d rugs not given
limited input to bid/award process
Term
Purhcasing model:
place order and make payment directly to mnaufacturere
Definition
manfacturer direct
Term
Purchasing model:L
place order thru whosale vendor for 90% of purchases
Definition
prime vendor wholsale
Term
purchasing model:
comboination model has more emphasis on?
Definition
prime vendor
Term
These advantages define what purchasing structure?
-payment offer discounts, no processing fee,
Definition
manufacutrer-direct
Term
These advantages define what purchasing structure?
-cna do large volume purchases, orders placed infrequently
Definition
manufactureer-direct
Term
These disadvantages define what purchasing structure?
indirect costs with invoices, minimum purchase required, shipping costs
Definition
manufacutrer-direct
Term
These disadvantages define what purchasing structure?
drugs not available in smal SKU, loss to expiration, storage space
Definition
manufacturere direct
Term
These disadvantages define what purchasing structure?
low turn over rate, turn around time risk
Definition
manufacutrer dirct
Term
prime vendor wholesale subsititures the wholesaler for-2
Definition
pharm dept warehouse
accoutns-payable dept
Term
wholesaler best prices with prime vendor wholesale strucutre are based on-4
Definition
GPO contract
priavte contracts
volume driven discounts
charge back to manufacturer
Term
in which stucture are orders places frequently (5x/week), for small quanitties?
Definition
prime vendor
Term
in which structure are invoices paid in batches?
Definition
prime vendor
Term
in which structure can hospt save money assoc with paying invoices?
Definition
prime vendor
Term
in prime vendor, the wholesaler add cost +/- fee to drug aquisition based on-2
Definition
montly purchase volume
payment terms
Term
what strategy can have wholesalers offer a discount
Definition
investment buying strategy
Term
what strategy is source fro cost minus tier shcedules
Definition
investment buying stratgey
Term
with investment buying strategy the _ discounts become avaialbe from manufactureer deals
Definition
purchase price
Term
with investment buying, you purchase drugs in larqe quantity why?
previously purchased is sold how?
Definition
anticipation of price increases
hgiher current prices
Term
investment buying shares net margin with-
Definition
high volume customers
Term
what strategy advatgaes does this describe-
-small quanitites to handle, invoivces paid in batches, charge back to GPO, volume discounts, reduced staffing costs, multiple report options
Definition
primer vednor
Term
what stratgey does this disadvatge describe-
no bakc orders, no volume discounts, difficult to add new items, cost fees if >0%
Definition
prime vednor
Term
if hospital belongs to a GPO does pharmacy director still ahve to neogtiate drug contracts?
Definition
yes, bc not all drugs covered on GPO
Term
*neither prime vednor or manufacturere direct is better. prime vednor offers more advtages, but still not technically better
Definition
Term
what factors have changed effecting investment buying-2
Definition
second market diversion
MIMA (manufact. iventory management agreements)
Term
changes in whole sale industries-2
Definition
wholesalers devloping own GPO
economic conditions requirer reduced production/shortages
Term
who competes with GPOs for contracts now?
Definition
wholesalers devloping exlcusive generics
Term
what servies used to be free and now have fees?-2
Definition
non standard reports
inventory reports
Term
increasing these 2 thigns leads to exclusive distribution through company owned distrbition companies
Definition
Black box warning
REMS
Term
process for solicitng bids and awarding contracts is lossely structed fro?
Definition
private owned hospitals
Term
contract bid and award process can be delegated by the _
the rules of engagemtn are set by _
Definition
pharmacist director
administration
Term
what lends legitimacy to the contract bid proces
Definition
P and T committee (defends bias questions)
Term
P&T role for bid process-4
Definition
generic products
therpeutic equivalent products
biosimialr products
bundled contracts
Term
guiding principals for bid process:
follow-
involve what department and what committee?
*also be consistant
Definition
defined process
Purchasing; MEdical Staff
Term
definiton:
sent to supplier requestin basic company info regarding products
Definition
request for info
Term
deinifiton:
sent to eleigble suppliers to outline specififactions and time table for bid process
Definition
request for proposal
Term
ASHP guidelines say in contract bid process, the obligations fo the supplier include-3
Definition
technical considerations
distribution policies
marketing and sales policies
Term
ASHP guidelines say in contract bid process, the obligation of the prucharser is
Definition
outlinig bid and award process
Term
PIC set to adhere to strict rules for contract bid rpocess depednds on-2
when is this a certainty?
Definition
depedns on rules of engagement set by hospt admin and ownership type
publicily owned its a definite yes
Term
defiitno:
agents who rpomote products and provide info to healthcare rpoviders
Definition
pharmaceutical representatives (vendors)
Term
pharm representatives call on hopsital pharmacies for-2
Definition
sales detailing
medical education
Term
hospitals have rules regulating vendor/pharm rep activies, what is the big reason to do so?
Definition
facilitate and enhance relationship by establishing rule sof conduct
Term
policie son vendor activities prevents-6
Definition
promotion of unlabaled indicaitons
distribution of samples
produtcs conflicting with formulary
conflict of interest
disruption of nromal operations
gifts and other influences
Term
policy elements fo vendors includes:-4
the rest on pg 34
Definition
registration
locations permitted
material dist
research acitvies
Term
policies invovling vendor regulaitons should invovle input from which committee?
what 2 regulate?
Definition
P&T
purchasing and pharmacy depts
Term
do public or private owned hosp have more policies about drugs or equipment delagted to pharm department
Definition
private
Term
*vendors are free to call singly on physcian to talk about new drug and have that physician try to get it on the formulary
Definition
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