3 tips on How to Take a Proactive Approach to Pharmacy Business Operations
Get the bigger picture of how the hospital system operates by working with other units.
proactive

Leonid Gokhman, PharmD, manager of pharmacy business operations at Harris Health System, takes a proactive approach to running his operation, rather than being reactive. He encourages his pharmacy, nursing, IT and revenue cycle peers to adopt this mindset.

“If you’re reactive, you’re creating so many other issues — not only for yourself, but for multiple teams,” Dr. Gokhman says. “If you're able to put things in place that prevent issues from happening in the first place, you drastically cut down on a lot of clutter, errors and unnecessary work.”

Part of taking a proactive approach means working directly with the frontline staff not only on project development and implementation, but maintenance as well. Staying within the pharmacy walls and only working with your team means you’re not getting the bigger picture of how the hospital system operates, he says. 

Plus, when major departmental initiatives are carried out in silos, crucial components may be overlooked. This oversight could result in either beneficial or detrimental downstream effects for other departments.

Five years ago, he was asked to participate in the hospital system’s vaccine redesign project. When he first started the project, the error rate was almost 50%. (Yes, you read that right. 5-0.)

“If you have errors in your clinical documentation and on your charges, you will not get paid or get paid inappropriately,” Dr. Gokhman says. “As I was digging through the system build and working with nursing leadership — it became clear to me that the system build was way too complicated. Our providers had five different workflows, requiring them to memorize numerous charge codes to manually post administration charges and contend with confusing order names. This diverted their attention away from direct patient care.”

Five workflows were four too many. His first step was to consolidate multiple provider and nursing workflows into one. Next, vaccine order names were updated according to ISMP (Institute for Safe Medication Practices) and Epic guidelines. Finally, a system build was implemented to automatically post vaccine and vaccine administration charges based on the documentation for each vaccine.

“Keep it simple,” Dr. Gokhman says. “When frontline staff are presented with too many options, they are prone to choosing incorrectly or resorting to workarounds. These workarounds might seem beneficial, but on the frontend, they lead to order entry and documentation errors. This causes multiple coding, billing and reimbursement issues on the backend.”

By simplifying and automating the workflow, they’ve drastically cut down the number of errors.  Recently, a third-party audit revealed a 100% vaccine billing compliance rate, surpassing the industry standard of 95%.

Discussion with Leon Gokham, Manager of Pharmacy Business Operations at Harris Health System (Part 2)
Discussion with Leon Gokham, Manager of Pharmacy Business Operations at Harris Health System (Part 2)

Dr. Gokhman outlined several steps for Revenue Cycle and pharmacy business leaders to adopt a proactive approach:

Encourage your team to pay attention to coding

A substantial part of his team's workflow focuses on maintaining the accuracy of the medication chargemaster, alongside managing incoming medication charges and ensuring precise coding.  Accurate and thorough coding has a critical role in the operations. It is essential for ensuring proper reimbursement, maintaining compliance with regulations, ensuring the accuracy of pharmacy’s operating statements, and optimizing financial outcomes for the organization, he says.

“One of the key tasks my team and I undertake is continually reviewing patient accounts, medication charges, 340B program modifiers, waste modifiers, CPT/HCPCS codes and billable units,” Dr. Gokhman says. “We aim to ensure that we not only receive payment, but also receive it accurately from the very first time.”

Use technology to streamline workflows

Dr. Gokhman was able to customize multiple aspects of Epic to help streamline both the frontend and backend processes to ensure a smooth flow of information.

“We wanted to make it easier for frontline staff to take care of the patients, instead of focusing on trying to remember different codes and modifiers,” Dr. Gokhman says. “Making the frontend operation simpler has drastically cut down the number of errors seen on the backend.”

Ongoing review of patient accounts

Dr. Gokhman runs weekly and monthly reports to monitor the accuracy of patient accounts, and the speed of their processing.

Most health insurance companies, except Medicare, typically allow organizations up to 95 days from the date of service to bill the patient's account. However, Medicare grants up to one year for billing. Beyond these deadlines, the organization may face rejection or denial of claims.

“It’s in our best interest to make sure all errors are resolved promptly and claims are billed out as quickly as possible,” Dr. Gokhman says. “My goal is to optimize the pharmacy portion of the revenue cycle by prioritizing automation, enhancing systems and workflows. This proactive approach facilitates appropriate payments, minimizes denials and aligns with the organization's objective of enhancing revenue cycle management. By focusing on these key areas, we can streamline processes, improve efficiency and ensure financial sustainability for the organization.”