A CASE STUDY ANALYSIS
PHARMACY SERVICE IMPROVEMENT AT CVS (A)
Submitted To: - Submitted By:-
Prof. Somonnoy Ghosh Deepak Kumar
Background of the Case:-
The case illustrates the power of the enterprise technologies, as well as the depth to which they transform companies that successfully put them in place. Customer Value Store faced increasing customer complaints that prevented the company from stronger growth. This problem was initially perceived to be due to poor customer service; however by historical data and customer interviews, Pharmacy Service Initiative (PSI) including “operations executives and managers”, “pharmacy supervisors, top pharmacists and consultants from the Boston Consulting Group” found that it was issues in the fulfillment process that resulted in customer dissatisfaction. The team was eager and enthusiastic to make “initiative” changes to solve the problem without compromising “customer safety”. The remaining part of this case study analysis is discussing about key issues found in the fulfillment process and recommend action steps to solve them. Key Issues:
1. Lack of management of customers’ expectation
Due to the following reasons, the customers couldn’t get what they were expecting while they found fulfillment process too long. a) Unauthorized refills. Customers often didn’t keep “track of how many refills were allowed” and therefore submitted ineligible scripts. In addition, it normally took a day on average to get a response from a doctor to whether a refill was approved. This caused customers impatient and especially upset when refills were not allowed. b) Scripts rejected for payment by insurance. That the payers wanted to control their costs by delivering log rules about drugs, refilling time and payment conditions truly complicated pharmacy employees work and lengthened wait time for a refill. c) DUR hard stop problem. As the information was sometimes incorrectly recorded due to written scripts, a DUR hard stop was generated and pharmacy employees had to call doctors to help them out.
2. Problems arose in almost every part of the fulfillment process Problems in the fulfillment process:
There are problems in almost every part of the fulfillment process - Drop Off - Staff asked for name, address, birth date, time of pick-up; then put script in slotted box (sectioned by hours of the day) in slot for one hour earlier than pick-up time. Potential Drop Off Problem: No one manning drop-off station
Data Entry - At each hour, tech took scripts from that hour’s slot and entered all required data into pharmacy info system (so no one looked at script until 1 hour before pickup) Hard Stop is good for patient safety but it’s bad for slowing down process, lowering efficiency Insurance check was done after DUR.
Potential Data Entry Problems: Tech couldn’t read handwriting on script, No refills allowed on script (6%), DUR hard stop (20%), and Insurance problems (17%). Production - Scripts were filled by pharmacy technicians
Potential Production Problem: Insufficient inventory – patient wouldn’t find out until pick-up that drug wasn’t available Quality Assurance – Pharmacist reviewed each script to make sure it was filled correctly. First priority is customer safety! Potential Quality Assurance Problem: None identified
Pickup - Bags stored in pickup area in alphabetical order until customer came for pickup. Potential Pickup Problems: Many, including staff couldn’t find script, unauthorized refill, script not covered by insurance – customer asked to pay full price, script not ready (waiting for doctor or insurance call-back or queue backed-up). Recommendation for CVS’s existing pharmacy fulfillment process:- I would suggest implementing a system that focuses on the day’s procedures and alters the drop-off, data...