Cvs Case

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Two types of Pharmacy Customers
Light Users
oFiled ~5 scripts per year
o~6.6 Mn defectors
69% of switchers due to location
13% due to service

Heavy users
oFilled ~40 scripts per year
o~540k defectors
44% of switchers left due to service , followed by price at 33%

Revenue per script 59.72 per script
Revenue lost from defection 3,000,000,000+
24% of revenue lost

improvement in service
only 13% of light users defected because of service so defection reduction from improvement in service will be less. (3.68% – 5.52%)

Existing Process:
Drop-Off -> Data Entry -> Drug Utilization Review -> Insurance Check -> Production -> QA -> Pickup

Drug Utilization Review – Checks if drug is in conflict with anything (like other drugs, weight, gender). If with conflict – HARD STOP, pharmacist would then check to clear or not clear

Problems with the Process
o16% of Scripts had unresolved problems at time of pickup
o27% of scripts encountered substantial problem at some point in fulfillment process •Drop off
oNobody is watching the in-store drop off window
oNobody responds to drive-thru
oTech must choose between serving in-store customers or drive-thru oCustomer calling in refill left on hold
oInitial interview fails to obtain critical data
oWait times made up/ over –promised
oOut of Stock (OOS) not checked
Data Entry
oNo Refill Allowed (6% of the scripts)
Requiring 20 mins to 3 days to resolve
oDUR Hard Stop (20% of the scripts)
But over 90% of hard stops were solved by pharmacists without involving doctor oInsurance Check (17% of Scripts)
Majority were easy to resolve; date of birth errors, customer changed jobs or insurers •But scripts continued to be filled even with insurance problems oPerson at DE cannot read handwriting

oPrescribed medication no longer manufactured/incorrect dosage •Production and Quality Assurance
oGroup of scripts arrive...
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