Data Entry

Drug
Utilization
Review

• Hour box
• Enter customer information
• Payment, insurance, prescription
• Drug utilization review (DUR)
• Insurance

Data Entry
History
Current Paradigm – We are making money

• Revenue $24 Billion $16 Billion from Pharmacy

• Pharmacy is the Cash Cow
• Why change? Paradigm S-Curve. Revenue not only indicator of success

New Process
Problematic areas identified in the process:
Quality Assurance
Production & Quality

Production
Data Entry
Quality
Assurance
Pharmacy Service Improvement at CVS
Data Entry

• Greet the customer

• Ask questions
• Put in corresponding spot (time box)

Drop Off
Insurance
Check

Advantages of new Process

Day-to-Day Operations
Old Process
• Faster
• Happier customers
• May increase Profit

• Reviewed each script

• Re-count drugs
• (QA)

Drop-Off
The Pharmacy Fulfillment Process

Pick-up

• No refill allowed
• 6% of all scripts have this issue
• “Dr. call bin”
• “Dr. denied”
• “Dr. call back box”
• DUR (Drug Utilization Review) Hard Stop
• 20% of all scripts had this issue
• 90% resolved by pharmacists without involving prescribing doctor
• Insurance Checks
• 17% of all scripts had this issue

• Unpleasant Customer Surprises

• Unauthorized Refills
• Scripts not paid by insurance
• Scripts not ready yet

• Drugs to be filled
• Certified pharmacy technician

Pick-up
Michael -Julio - Angela - Esther

Production
We are loosing customers.

• Year 2000 CVS has 29 million members and has revenue of $20 Billion
• Lost 7.2 million customers to competition
• Gained 8.5 million new customers
• Net Gain 1.3 million new customers
• Cost of lost customers $2.5 billion

Proposed Solution
Reasons Customers were Switching
Production
The Consumer Value Store started 1963 in Lowell Massachusetts.
2002 CVS has 4000 stores by opening new stores or buying up independents stores and chain
stores.
Growth by acquisition could be a problem of multiple paradigms
The key to a paradigm shift is to do it before you are forced to (see S-curve)

• Unmanned drop off counter

• Issues were typically uncommon because no actions took place at this stage.

Pick-up
Drop-off

• Virtual Queue was introduced instead of boxes.

Pickup

• Sealed bag
• Stored in the pick up area
• Verified customers’ identities
• Process payments

• Insufficient inventory

7% of all scripts had this issue experienced partial or complete stock out of required medication

• No issues in quality. This is an area where the pharmacies excelled!

another Solution Proposed

Pharmacy Service Initiative
Consists of senior stakeholders, management and outside consultant
Why stakeholders?
Why management?
Why outside consultant?
Need to do in store interviews and observations
We have a symptom of a problem.

• Customers defection to competition

• Low level employees leaving High turnover
• Pharmacy Service Initiative
• Anecdotal evidence indicates service problem
Drop-off