CASE STUDY

Developing a hospital budget model to support use of an innovative product and treatment regimen that was covered in provincial formularies for outpatient use

Situation

Our client wanted to increase hospital adoption and utilization of their innovative product. Product sales growth was directly linked to having patients initiated on therapy while in hospital. Although the benefits of superior patient outcomes are recognized and product was funded under provincial formularies, there was no specific hospital budget to support the product’s use.

Diagnosis

DS&R analyzed the situation, identified an opportunity to help convince hospitals purchase the product. If there were data showing improved patient outcomes that led to hospital savings and improved key hospital metrics, it could help get the hospital formulary listing and enhance the selling processes.

Solution

DS&R conducted two independent studies at two hospitals using the Healthcare Innovation Performance Assessment (Healthcare IPA©). The studies a showed a significant reduction in length of stay, readmission rates and patient outcomes, as well an estimated savings of $17,355¹ and $56,071² per patient per year. A cost calculator was developed form the data to enable the sales team to demonstrate the benefits at specific hospitals using local data.

Result

The publications provided additional tools to help sales team show the benefits to target accounts. Administrators, hospital pharmacists and clinicians used the data and calculator project the impact of the therapy using local variables. Applying DS&R’s proven process helps grow sales by accelerating product adoption. Sales were significantly increased as a result of this approach.

¹ Koczerginski & Arshoff, Hospital Resource Use by Patients with Schizophrenia: Reduction after Conversion form Oral Treatment to Risperidone Long Acting Injection, Healthcare Quarterly 2011:14 (1): 82-87
² Lalla & Arshoff, A mental health initiative to enhance schizophrenia treatment efficacy, Healthcare Management Forum 2013:26(1): 46-50

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