Archbold Medical Center Achieves Medication Inventory Visibility and Optimization

Archbold Medical Center is a 540-bed health system that includes four hospitals, three long-term care facilities, and four specialty clinics, with more than 2,500 employees.

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The Challenge

In 2010, it became apparent that weak points in the medication supply chain were strained and shortages were increasingly common. The American Society of Health-System Pharmacists (ASHP) identified 211 tracked drug shortages in 2010 alone, and the number continued to climb.

The lack of an inventory management and automation solution resulted in many lost hours tracking down medications. The manual processes, including “eyeball” medication inventory counting, led to inaccurate measurement of utilization.

The staff at Archbold realized they needed clear insight into where every vial, drop, and capsule is located. By having greater inventory visibility, they could identify breaking points in the supply chain and mitigate them.

In 2010, it became apparent that weak points in the medication supply chain were strained and shortages were increasingly common. The American Society of Health-System Pharmacists (ASHP) identified 211 tracked drug shortages in 2010 alone, and the number continued to climb.

The lack of an inventory management and automation solution resulted in many lost hours tracking down medications. The manual processes, including “eyeball” medication inventory counting, led to inaccurate measurement of utilization.

The staff at Archbold realized they needed clear insight into where every vial, drop, and capsule is located. By having greater inventory visibility, they could identify breaking points in the supply chain and mitigate them.

The Solution

Archbold began a strategic relationship with Omnicell and initially implemented hardware automation, including ADCs and the XT Anesthesia Workstation™, a dispensing system for the operating room.

One reason Archbold selected Omnicell was a shared vision for the future and direct engagement that led to a strong relationship. As the partnership grew, Archbold’s feedback helped shape future programs and products offered by Omnicell.

For example, medication inventory management was getting more complicated. There was a need for a data and analytics solution that consolidates information across the medication management continuum for greater inventory visibility. To meet this need, Archbold implemented Omnicell One™, a tech-enabled service that aggregates data into the cloud and provides inventory visibility and optimization, closed loop workflows, and diversion management.

Archbold began a strategic relationship with Omnicell and initially implemented hardware automation, including ADCs and the XT Anesthesia Workstation™, a dispensing system for the operating room.

One reason Archbold selected Omnicell was a shared vision for the future and direct engagement that led to a strong relationship. As the partnership grew, Archbold’s feedback helped shape future programs and products offered by Omnicell.

For example, medication inventory management was getting more complicated. There was a need for a data and analytics solution that consolidates information across the medication management continuum for greater inventory visibility. To meet this need, Archbold implemented Omnicell One™, a tech-enabled service that aggregates data into the cloud and provides inventory visibility and optimization, closed loop workflows, and diversion management.

The Impact

Key Outcomes:

  • 45% growth in daily specialty pharmacy sales
  • 30% increase in providers served
  • 35% increase in patient volume

Archbold pharmacy leaders noticed the benefits of Omnicell One almost immediately. Introducing automated medication inventory management made a significant difference, including:

  • Achieved savings of over $307,000 in the first nine months
  • A Moved from a defensive to offensive strategy
  • A Increased inventory visibility, reduced waste, and improved medication management
  • A Allowed pharmacists more time to practice at the top of their license
  • A Improved workflow efficiency for nursing

The overall savings included reducing inventory costs by over $244,000 in the Oncology departments. Omnicell One’s workflow tool closed the loop on optimization recommendations and enabled pharmacy leaders to assess the impact of the changes.

By automating inventory management, Omnicell One helped Archbold progress further toward the Autonomous Pharmacy, an industry vision for the future of medication management that seeks to replace manual, error-prone activities with automated processes that are safer and more efficient.

Moving from a Defensive to Offensive Strategy

When Archbold faced budget cuts a few years ago, they couldn’t hire more pharmacists and techs but still needed to fulfill their annual $15M–$20M drug spend. Their long-term plan with Omnicell started with automation as a defensive strategy to combat the budget cuts but then evolved to an offensive strategy that added medication inventory management software to help them stay ahead of the curve.

When Archbold faced budget cuts a few years ago, they couldn’t hire more pharmacists and techs but still needed to fulfill their annual $15M–$20M drug spend. Their long-term plan with Omnicell started with automation as a defensive strategy to combat the budget cuts but then evolved to an offensive strategy that added medication inventory management software to help them stay ahead of the curve.

"Better inventory insight opened the door for Archbold to achieve a more fully autonomous pharmacy. "

Chris Newman, PharmD, MSHA Vice President of Clinical Services, Archbold Medical Center

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