Transcript Situational Analysis

E-scripts
Situational Analysis
Curt Mull
West Holtzclaw
Eric McMath
Cathy Hood
Karen England
Jeff Rund
Kassonga Mwamba
Industry History and Analysis
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Industry revenues over $178
billion in 2004*
5% ( 1.5 million/3.2 billion )
Rx filled incorrectly yearly
44,000 to 98,000 annual
deaths*
Main factor is excessive
pharmacy workload
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Label confusion, similar names, physician/patient/pharmacist
miscommunication
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Average 17 prescriptions an
hour ( 1 every 4 minutes)
Slow to adopt EMR movement
*-Fortune 500, industry Healthcare and pharmacy
*Institutes of Health, 1999
Market Situation
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150,000 physicians currently
using electronic prescription
fulfillment
Average of 28% of physicians
feel current prescribing
procedures cumbersome
Approx. $27 billion could be
saved in fewer medication
errors
Approx 75% of national
pharmacies will be connected
to an E-prescription network
by the end of 2006
One study showed an average
saving of 0.75 to $3.20 per
prescription3
Medicare Modernization Act
mandates total EMR by 2014
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1 Online Business Intelligence for the Biotech world, November 2004
2 CBS Marketwatch, May 2004
3 Capgem, Ernest and Young, Feb 2000
Product Analysis
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Strengths
Eliminates prescription error
Reduce workload of pharmacy
Standard format
Quick dispensing from pharmacy
Elimination of hand-writing errors
Re-fill notification and automatic dispensing
Time management for pharmacy staff
Connects physicians-patients-HMO-pharmacy
Product Analysis
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Weakness
Slow adoption
Costly to implement
Initial ROI
Connectivity to protected medical and insurance records
Software development
Security of records
Product Analysis
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Opportunities
Capitalize on EMR movement
Federal funding available to off-set initial start-up cost
Partner with pharmacies, pharmaceutical companies,
medical practices
Stream-line of dispensing process
Significant reductions in pharmacy workload, dispensing
errors
Reduction in HMO/pharmacy cost
Partnership with pharmaceutical companies to E-detail
products
Product Analysis
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Threats
Cost of start-up
Implementation
Support of system
Single set of standards
Outdated software
Privacy protection
Secure system
Government regulations
Medical/Pharmacy infrastructure
Competitors
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Dept. of Health and Human resources
All major PBM’s involved in development
and implementation of e-prescriptions
Surescripts, Allscripts, DrFirst, Gold
Standard, Medplus/Quest Diagnostics,
ZixCorp all heavily involved with H&HS
Many do have links to proprietary PBM’s
and pharmaceutical companies
Environment
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Economical
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Legal
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State regulations
Scheduled medications
Secure network
Pharmacy
Socio-culture
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Federal grants
Partnerships with HMO/Pharmaceutical companies
Positive environment-EMR movement
Acceptance from medical and pharmacy community
Awareness and education of EMR and E-scripts
Technical
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Infrastructure of network
Support of system
Challenge of obsolete services
Medical practice and pharmacy infrastructure