What Is the Difference Between Average and Actual Pricing?

One key benefit of CareFlow Pharmacy is the way it calculates stockholding requirements. Many other pharmacy stock control solutions on the market use fixed ordering parameters and an ‘Average’ pricing model. They calculate the value of the stock held in each unit within an organization based on the average price typically paid for the stock items.

CareFlow Pharmacy uses the actual price paid to the supplier for each item in stock and calculates the value. Actual pricing gives budget holders a more reliable financial report with accurate stock valuations for each unit within an organization.

Stock Control with CareFlow Pharmacy

CareFlow Pharmacy procurement algorithms automatically set and adjust a variety of parameters depending on the demand on each medicinal product. This manages surges in case load as well as reduction. A popular example of this in action is with seasonal medication such as antihistamines. Hay fever tablets are a seasonal drug due to how the effects of pollen on patients are higher during summer. There is little need for them to be stocked during the colder months as pollen counts are generally low. CareFlow Pharmacy can adjust seasonally when demand is low. This avoids wastage and unnecessary logistical costs.

This prevents over-ordering of stock, which subsequently reduces the potential for unused drugs to expire on the shelves. This guarantees that expired medication and the number of unneeded drugs on the shelves is reduced. It helps to reduce time spent monitoring and re-ordering medications through the system. This also leads to a reduction of wastage and risks of having medication available on the shelves that is not required by customers.

We estimate that pharmacies that switch and fully implement its procurement and stock management capabilities can potentially save up to 10%-15% of their annual drugs budget. The higher end of savings being achieved through rationalisation of stocks across the hospital, process improvement and automation where available, allowing funds to be allocated elsewhere within the department or organization.

Examples of Global & Regional Savings with CareFlow Pharmacy

CareFlow Pharmacy is used at 350 hospital sites across 140 organizations in the U.K and abroad. The solution is currently used by 60% of the NHS. This includes organizational approaches such as the Royal Derby Hospital and even sites on a regional level like NHS Scotland North. This indicates that it can facilitate whole regions and even sites who wish to move onto one single system. The solution is equipped to support you in your wider ICS digital transformation plans whilst also maintaining the quality of product at an organizational level.

One of those sites is St Mary’s Hospital, located on the Isle of Wight. After switching to CareFlow Pharmacy, the site recorded around 11% savings on its monthly drugs budget. This enabled the whole EPMA and Pharmacy system to pay for itself in three years. CareFlow Pharmacy is also live across the Channel Islands and in regional and national deployments across the U.K. The solution has also been successfully deployed across the Western Cape in South Africa, making it one of the largest operational pharmacy solutions anywhere in the world, with over 200 locations on a single solution over 50,000 square miles.

Next Steps

To learn more about the CareFlow Pharmacy solution and the potential savings you can make, please check out our webinar and Pharmacy Brochure.

View our range of blogs for valuable insights and helpful tips.

If you have any questions or would simply like a friendly chat, please don’t hesitate to reach out. We’re here to help.