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Specialty Pharmacy:
Connecting the Healthcare Industry
Rebecca M. Shanahan, Esq.
CEO of Avella
April 3, 2014
―A lot of people in our industry haven't had very
diverse experiences. So they don't have
enough dots to connect, and they end up with
very linear solutions without a broad
perspective on the problem. The broader
one's understanding of the human
experience, the better design we will have.‖
- Steve Jobs
Current Forces in Healthcare
―Minute clinics‖ Primary care office Specialist office
Hospital Outpatient Home health
Hospice Retail pharmacy Specialty pharmacy
Page: 4 | Confidential and Proprietary
Explosive Growth in Healthcare Data
The healthcare industry is experiencing explosive
growth in data: from 500 petabytes in 2013 to
25,000 petabytes by 2020.
= 500 Petabytes
2013 2020
Source: http://hin.com/blog/2013/12/24/infographic-storing-healthcare-data/
Page: 5 | Confidential and Proprietary
Physicians are Going Mobile
66% of doctors use a tablet for
medical purposes
More than 50% of doctors
using a mobile device report
that they aid in decision-making
40% report decreases in
administration time due to
mobile device usage
Doctors are 250% more
likely to own a tablet
than other consumers Source: http://www.totalassist.com/infographic-healthcare-mobility-doctors-250-likely-tablet/
Page: 6 | Confidential and Proprietary
Silo Innovation May not Work
#1 Innovation: Checklists
Hospitals will require health care
providers to follow strict protocols for
procedures that benefit from
routinization—from preparing a patient for
surgery to inserting a central line.
―Ten Innovations That Will Transform Medicine‖
“Researchers found no significant drop in complication or mortality rates
in the three months after the adoption of checklists.”
Page: 7 | Confidential and Proprietary
Page: 8 | Confidential and Proprietary
What Watson is Doing Now
By 2016, 8 out of the top 10 branded
pharmaceuticals in the U.S. will be
specialty medications.
Page: 10 | Confidential and Proprietary
=+
Cashless & Convenient:
You don't need cash when you ride with Uber.
Once you arrive at your destination, your fare is
automatically charged to your credit card on file
– no need to tip. We‘ll also e-mail you a receipt.
One Tap to Ride:
Uber uses your phone's GPS to detect your
location and connects you with the nearest
available driver. Get picked up anywhere —
even if you don't know the exact address.
Patient Access and
Empowerment
• Physicians, nurses, medical assistants,
practice managers and other staff that
influence what specialty pharmacy is
used by the patient.
What Specialty Stakeholders Want
Predictable Costs
• Value based health care
• Bending the cost curve
Documented Quality
• Best Practices Clinical & Formulary
Management
• Patient & Provider Network Satisfaction
• Documented Comparative Outcomes
Integrated Care
• Pharmacy & Medical Benefit
• Administrative efficiencies
• Web based technology interfaces with
protected PHI
Connecting a
Disconnected Industry
Page: 13 | Confidential and Proprietary
Specialty Pharmacy: Linking the Silos
Specialty Pharmacy Healthcare Silos
• Which patients have experienced (1)
ER visit / hospitalization or (2) new
medical condition?
• Which patients need refills?
• QOL Issues/Opportunities
• Correlate outcomes differences to
prescriber, patient therapy, outcomes
Safety & OutcomesCompliance & Benefits
• What Step Therapy, PA & CPBs
• How often is patient missing
doses? Why?
• Has patient discontinued
therapy? Why?
• Has patient been referred to MD
or manufacturer patient support?
• What disposition?
Patient Data
• Lab Values
• Patient-specific Data
• Skills of Daily Living and
Physical Info
• Compliance Rate
• Discontinuation & Reasons Why
• Drug-Specific Outcomes at
Targeted Levels
Physician Payor Pharma
RESULTS:
• Communication
• Safety
• Adherence
• Improved
Outcomes
Page: 14 | Confidential and Proprietary
Integrated Care
Page: 15 | Confidential and Proprietary
Conflicting Trends
New Approach Needed:
‗Specialty‘ Specialty Pharmacy to focus on high-cost, low-population needs
Reining-in the high
cost of healthcare
Industry consolidation
leveraging volume throughput
Higher-cost specialty
drugs for smaller
populations of patients
Precision therapy with highly refined
patient populations
Economic Clinical
Page: 16 | Confidential and Proprietary
Drug Development: Rapidly Advancing Arsenal of
Very Costly, High Precision Tools
Ref: Robert Mancini et al. Oral Oncolytics: Part 1—Financial, Adherence, and Management Challenges; August 15, 2013, Cancer Network, Oncology Vol. 27, No. 8
© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Courtesy Mark Schoenebaum, ISI Group
Page: 18 | Confidential and Proprietary
p70 S6K
p70 S6K
mTOR
AKT
P13K
GSK3 a/b
BCR-
AB1
Src
Src
P
Predominant in
endothelia
Bevacizumab
Bevacizumab
VEGFR3
VEGFR2
VEGFR1
bFGR
IGF-1R
P P
P
HER-2
ErbB3PDGFRa/b Cetuximab
c-Kit
AZD2171
Sunitinib
Dasatinib
Imatinib
AZD2171
Sunitinib
Dasatinib
Imatinib PF-0299804
BIBW 2992
PPI/DasatinibBEZ235
Dasatinib
PDF184352
Sorafenib
RAD001
P
P
P
RAS
P
B-RAF
MEK
ERK1/2
P
P
p38MAPK
P
ERK1/2
p38MAPK
P
P
Chemotherapeutic agents
(cisplatin/paclitaxel
docetaxel/docetaxel + cisplatin)
Bortezomib
Proteosome
SUBSTRATE
CELLCYCLE
G1
R
S
MG2 17-AAG
STAT1,2,3,5,6
P
STAT1,2,3,5,6
P
AG490
AZD2171
Sunitinib
STAT
Jak
P
P
P
P
P
P
AG1024 /
PP1
SU5402
AZD2171
Sunitinib
Sorafenib
AZD2171
ZD6474
Sunitinib
Sorafenib
Tumor cell
VEGFs,
bFGF
HIF-1a
bFGFR VEGFR1 VEGFR1 VEGFR3
Endothelial cell
Bevacizumab Bevacizumab
Blood vessel
AZD2171
sunitinib
AZD2171
ZD6474
sorafenib
sunitinib
AZD2171
sorafenib
sunitinib
SU5402
Waste
Proteins
LBH589
Aggresome
LBH589
ASA404
HDAC
HDAC
Figitumuma
b
P
EGFR/HER-1
Gefitinib
Erlotinib
PF-0299804
BIBW 2992
ALK
Crizotinib
c-Met
Crizotinib
PF-04217903
Drug Specialization:
Increasing with Understanding of Biology
© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Page: 19 | Confidential and Proprietary
Integrated Real-time Close-Looped Solutions Will
Drive the Future of Healthcare
© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Shared
HIT
Solutions
Patient
Specialty
PharmacyPhysician
Physician:
Increasing complexity of
precision therapeutics requires
decision support, virtual Clinical
Pharmacist Partner
Patient:
Just-In-Time, 3 minute mobile health
solutions to empower the patient &
maximize adherence and compliance
Specialty Pharmacy:
Rapidly expanding arsenal of high-
cost, low-volume therapeutics demands
personalized approach
Ongoing Benefits Management
Complexities
Patient:
Get the right information
Get the right drug & dose
Get it at the right time
Page: 20 | Confidential and Proprietary
Specialty Pharmacy: POS & Medical
Benefits, Processing World Collide
Considerations
Two billing
methodologies
converge
Specialty Drug Spend
2014 and beyond
Specialty Pharmacy
Medication Fulfillment
Point of Service
Drug Claims Processing
Drug Benefit
NCPDP/PBM
One system, non siloes
claims data
Strong Integration
Billing requirement
differences,
NCPDP/Universal Claim vs.
Procedural Coding,
HC15010, EDI vs. snail mail
or 837
Traditional
Medical Claims Processing
Medical Benefit
UB/1500 -837(p)or(i)/Payors
Reimbursement
―Rules of Engagement‖
Managed Care/Payor
Contracting
Page: 21 | Confidential and Proprietary
PathWare™ Decision Support for Clinical
Pathways
Get the Right Drug to the Right Patient at the Right Time
© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Page: 22 | Confidential and Proprietary
AIM Provider Portal
Source: https://wellpoint.aimoncology.com/CancerTreatmentPathways.html
Page: 23 | Confidential and Proprietary
Frameworks SRx Integrator Platform
The New Specialty
Pharmacy:
Highly configurable
Pushing/Pulling Data Across
dispersed yet shared
healthcare continuum.
Connecting
Patients, Payors, Providers, D
rug Manufactures, Specialty
Pharmacy for better outcomes
(Health/Financial)
Specialty Pharmacy
Management
Patient & Payor
Physician/Hospital
Management
Page: 24 | Confidential and Proprietary
Transactional
• Scripts
• Authorizations
• Fills
• Claim Filing
• POS/Medical
Data Capture
• Providers
• Pharmacy
• Patient
• Payor
Central Data
Repository
and Analytics
• Contract
• Patient Management
• Claims Management
• Audit Risk Mitigation
• Better Outcomes
Patients
• Better Compliance
• Better Management
• Lower Cost
• Predictable
• Better Outcomes
Single Repository – User Specific Insights
Making data user defined and easily obtainable
Page: 25 | Confidential and Proprietary
Page: 26 | Confidential and Proprietary
Patient Access and Empowerment
Page: 27 | Confidential and Proprietary
Bi-Directional Text Messaging Program
• Text messaging program
• Daily reminders to take
medication
• Reminders for lab work
• Educational tips, e.g. blood
pressure monitoring
• Motivational messaging
• Patient surveys
• Gather lab values
• Pharmacist intervention for any
indication of non-compliance
• Clinician notified
• Weekly emails to clinical staff
• Refill Reminders
Bi-Directional Text Messaging Program
Increase in Refill Rates After Adoption
69.4%
89.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Pre-adoption
rate
29%
Growth in refill rate
after adoption of text
messaging program
Post-adoption
rate
Page: 30 | Confidential and Proprietary
Patient Education & Adherence
Personalized education appended
to patient‘s personal health record
Page: 31 | Confidential and Proprietary
Patient Empowerment
Leading provider of oncology patient
portals provides personal health record
for connected patient participation
68% visit
greater than 4+ times
per month
50% of invited
patients join portal
Our pilot program demonstrated a 50% increase in
medication adherence at month 4 of therapy for Tasigna®
patients using GlowCap (vs. control group).
Page: 33 | Confidential and Proprietary
Patient Adherence Comparison
Avella GlowCap Users vs. Non-Users
• Early data show Avella
patients with GlowCap had
better adherence in their
first 4 months of therapy.
• The gap between the
groups seems to grow
overtime, especially for
Tasigna patients.
Page: 34 | Confidential and Proprietary
Documented Quality &
Predictable Costs
Dispensing Scorecard Example – Q4, 2013
Pharmacy A
Other specialty pharmacies
33%
34%
23%
9%
3%
45%
23%
22%
9%
1%0%
10%
20%
30%
40%
50%
0-3 4-7 8-14 15-28 29+
45%
Page: 37 | Confidential and Proprietary
Study Results
The intervention group showed a 12.6%
improvement in adherence rate (MPR)
over the course of the study.
Page: 38 | Confidential and Proprietary
Study Results
Intervention group was 78% more likely
not to be hospitalized: Saving $27,852
per month in healthcare costs.
Page: 39 | Confidential and Proprietary
Pathway Results Speak
for Themselves…
“This analysis affirms that savings on aggregated
breast, colon, and lung cancer spending as high as 15%
can be achieved in the first year of our pathways program
concurrent with as much as a 7% reduction in hospital
admissions.”
© Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
Page: 40 | Confidential and Proprietary
Program Validation: Open-Ended Questions
Drug Response Type Response Count
Xeloda YES 56
Xeloda NO 60
Side Effects — Was the patient aware of [Xeloda] side effects?
Drug Response Type Response Count
Xeloda YES 76
Xeloda NO 40
Monitoring Parameters — Did your doctor tell you about the importance of [Xeloda] lab work?
Drug Response Type Response Count
Xeloda YES 64
Xeloda NO 52
Indications — Does the patient know what the [Xeloda] indication is?
Page: 41 | Confidential and Proprietary
Program Validation: Counsel opt-out
Page: 42 | Confidential and Proprietary
Prior Authorization Edit for Telaprevir
(Formulary Management)
Goals:
• Clinical evaluation of each fill
– RGT
• Prevent wastage
– 4th fills denied
Avella Intervention
Clinical Pharmacist
Review
325 internal PA’s submitted
6 claims denied due to
inappropriate request
• 4 requested for 4th fill
• 2 requested for patients with VL
>1,000u/ml at week 4
Total Savings of $158,772.90
Page: 43 | Confidential and Proprietary
Plan A
50%Plan B
47%
Cost Savings
3%
Votrient for 60 Patients Over 30 Days
Monthly cost of Votrient:
$9,240* per patient
• Plan A: Total cost for 30 day
supply
• Plan B: Total cost for 15 day
increments in 30 days
• Anticipated 10% attrition within
30 days
• $27,720 potential savings in one
month for one drug if utilizing
Plan B
• 5% savings per month utilizing
Plan B
* Based on current AWP
Page: 44 | Confidential and Proprietary
In Summary
• Explosive growth in SRx pipeline
and costs create a demand for
industry collaboration.
• Communication, collaboration and
technology drive
adherence, improve
outcomes, and reduce healthcare
costs.
• Specialty pharmacies are uniquely
positioned to serve as the
―healthcare industry connecter‖
• Watershed moments in SRx
continue –
Sovaldi, Imbruvica…more to
come
Page: 45 | Confidential and Proprietary
Stay Connected
Rebecca M. Shanahan, Esq.
CEO of Avella
linkedin.com/pub/rebecca-shanahan/7/100/262
rebecca.shanahan@avella.com

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Specialty Pharmacy: Connecting Healthcare Silos

  • 1. Specialty Pharmacy: Connecting the Healthcare Industry Rebecca M. Shanahan, Esq. CEO of Avella April 3, 2014
  • 2. ―A lot of people in our industry haven't had very diverse experiences. So they don't have enough dots to connect, and they end up with very linear solutions without a broad perspective on the problem. The broader one's understanding of the human experience, the better design we will have.‖ - Steve Jobs
  • 3. Current Forces in Healthcare ―Minute clinics‖ Primary care office Specialist office Hospital Outpatient Home health Hospice Retail pharmacy Specialty pharmacy
  • 4. Page: 4 | Confidential and Proprietary Explosive Growth in Healthcare Data The healthcare industry is experiencing explosive growth in data: from 500 petabytes in 2013 to 25,000 petabytes by 2020. = 500 Petabytes 2013 2020 Source: http://hin.com/blog/2013/12/24/infographic-storing-healthcare-data/
  • 5. Page: 5 | Confidential and Proprietary Physicians are Going Mobile 66% of doctors use a tablet for medical purposes More than 50% of doctors using a mobile device report that they aid in decision-making 40% report decreases in administration time due to mobile device usage Doctors are 250% more likely to own a tablet than other consumers Source: http://www.totalassist.com/infographic-healthcare-mobility-doctors-250-likely-tablet/
  • 6. Page: 6 | Confidential and Proprietary Silo Innovation May not Work #1 Innovation: Checklists Hospitals will require health care providers to follow strict protocols for procedures that benefit from routinization—from preparing a patient for surgery to inserting a central line. ―Ten Innovations That Will Transform Medicine‖ “Researchers found no significant drop in complication or mortality rates in the three months after the adoption of checklists.”
  • 7. Page: 7 | Confidential and Proprietary
  • 8. Page: 8 | Confidential and Proprietary What Watson is Doing Now
  • 9. By 2016, 8 out of the top 10 branded pharmaceuticals in the U.S. will be specialty medications.
  • 10. Page: 10 | Confidential and Proprietary =+ Cashless & Convenient: You don't need cash when you ride with Uber. Once you arrive at your destination, your fare is automatically charged to your credit card on file – no need to tip. We‘ll also e-mail you a receipt. One Tap to Ride: Uber uses your phone's GPS to detect your location and connects you with the nearest available driver. Get picked up anywhere — even if you don't know the exact address.
  • 11. Patient Access and Empowerment • Physicians, nurses, medical assistants, practice managers and other staff that influence what specialty pharmacy is used by the patient. What Specialty Stakeholders Want Predictable Costs • Value based health care • Bending the cost curve Documented Quality • Best Practices Clinical & Formulary Management • Patient & Provider Network Satisfaction • Documented Comparative Outcomes Integrated Care • Pharmacy & Medical Benefit • Administrative efficiencies • Web based technology interfaces with protected PHI
  • 13. Page: 13 | Confidential and Proprietary Specialty Pharmacy: Linking the Silos Specialty Pharmacy Healthcare Silos • Which patients have experienced (1) ER visit / hospitalization or (2) new medical condition? • Which patients need refills? • QOL Issues/Opportunities • Correlate outcomes differences to prescriber, patient therapy, outcomes Safety & OutcomesCompliance & Benefits • What Step Therapy, PA & CPBs • How often is patient missing doses? Why? • Has patient discontinued therapy? Why? • Has patient been referred to MD or manufacturer patient support? • What disposition? Patient Data • Lab Values • Patient-specific Data • Skills of Daily Living and Physical Info • Compliance Rate • Discontinuation & Reasons Why • Drug-Specific Outcomes at Targeted Levels Physician Payor Pharma RESULTS: • Communication • Safety • Adherence • Improved Outcomes
  • 14. Page: 14 | Confidential and Proprietary Integrated Care
  • 15. Page: 15 | Confidential and Proprietary Conflicting Trends New Approach Needed: ‗Specialty‘ Specialty Pharmacy to focus on high-cost, low-population needs Reining-in the high cost of healthcare Industry consolidation leveraging volume throughput Higher-cost specialty drugs for smaller populations of patients Precision therapy with highly refined patient populations Economic Clinical
  • 16. Page: 16 | Confidential and Proprietary Drug Development: Rapidly Advancing Arsenal of Very Costly, High Precision Tools Ref: Robert Mancini et al. Oral Oncolytics: Part 1—Financial, Adherence, and Management Challenges; August 15, 2013, Cancer Network, Oncology Vol. 27, No. 8 © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
  • 18. Page: 18 | Confidential and Proprietary p70 S6K p70 S6K mTOR AKT P13K GSK3 a/b BCR- AB1 Src Src P Predominant in endothelia Bevacizumab Bevacizumab VEGFR3 VEGFR2 VEGFR1 bFGR IGF-1R P P P HER-2 ErbB3PDGFRa/b Cetuximab c-Kit AZD2171 Sunitinib Dasatinib Imatinib AZD2171 Sunitinib Dasatinib Imatinib PF-0299804 BIBW 2992 PPI/DasatinibBEZ235 Dasatinib PDF184352 Sorafenib RAD001 P P P RAS P B-RAF MEK ERK1/2 P P p38MAPK P ERK1/2 p38MAPK P P Chemotherapeutic agents (cisplatin/paclitaxel docetaxel/docetaxel + cisplatin) Bortezomib Proteosome SUBSTRATE CELLCYCLE G1 R S MG2 17-AAG STAT1,2,3,5,6 P STAT1,2,3,5,6 P AG490 AZD2171 Sunitinib STAT Jak P P P P P P AG1024 / PP1 SU5402 AZD2171 Sunitinib Sorafenib AZD2171 ZD6474 Sunitinib Sorafenib Tumor cell VEGFs, bFGF HIF-1a bFGFR VEGFR1 VEGFR1 VEGFR3 Endothelial cell Bevacizumab Bevacizumab Blood vessel AZD2171 sunitinib AZD2171 ZD6474 sorafenib sunitinib AZD2171 sorafenib sunitinib SU5402 Waste Proteins LBH589 Aggresome LBH589 ASA404 HDAC HDAC Figitumuma b P EGFR/HER-1 Gefitinib Erlotinib PF-0299804 BIBW 2992 ALK Crizotinib c-Met Crizotinib PF-04217903 Drug Specialization: Increasing with Understanding of Biology © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
  • 19. Page: 19 | Confidential and Proprietary Integrated Real-time Close-Looped Solutions Will Drive the Future of Healthcare © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health. Shared HIT Solutions Patient Specialty PharmacyPhysician Physician: Increasing complexity of precision therapeutics requires decision support, virtual Clinical Pharmacist Partner Patient: Just-In-Time, 3 minute mobile health solutions to empower the patient & maximize adherence and compliance Specialty Pharmacy: Rapidly expanding arsenal of high- cost, low-volume therapeutics demands personalized approach Ongoing Benefits Management Complexities Patient: Get the right information Get the right drug & dose Get it at the right time
  • 20. Page: 20 | Confidential and Proprietary Specialty Pharmacy: POS & Medical Benefits, Processing World Collide Considerations Two billing methodologies converge Specialty Drug Spend 2014 and beyond Specialty Pharmacy Medication Fulfillment Point of Service Drug Claims Processing Drug Benefit NCPDP/PBM One system, non siloes claims data Strong Integration Billing requirement differences, NCPDP/Universal Claim vs. Procedural Coding, HC15010, EDI vs. snail mail or 837 Traditional Medical Claims Processing Medical Benefit UB/1500 -837(p)or(i)/Payors Reimbursement ―Rules of Engagement‖ Managed Care/Payor Contracting
  • 21. Page: 21 | Confidential and Proprietary PathWare™ Decision Support for Clinical Pathways Get the Right Drug to the Right Patient at the Right Time © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
  • 22. Page: 22 | Confidential and Proprietary AIM Provider Portal Source: https://wellpoint.aimoncology.com/CancerTreatmentPathways.html
  • 23. Page: 23 | Confidential and Proprietary Frameworks SRx Integrator Platform The New Specialty Pharmacy: Highly configurable Pushing/Pulling Data Across dispersed yet shared healthcare continuum. Connecting Patients, Payors, Providers, D rug Manufactures, Specialty Pharmacy for better outcomes (Health/Financial) Specialty Pharmacy Management Patient & Payor Physician/Hospital Management
  • 24. Page: 24 | Confidential and Proprietary Transactional • Scripts • Authorizations • Fills • Claim Filing • POS/Medical Data Capture • Providers • Pharmacy • Patient • Payor Central Data Repository and Analytics • Contract • Patient Management • Claims Management • Audit Risk Mitigation • Better Outcomes Patients • Better Compliance • Better Management • Lower Cost • Predictable • Better Outcomes Single Repository – User Specific Insights Making data user defined and easily obtainable
  • 25. Page: 25 | Confidential and Proprietary
  • 26. Page: 26 | Confidential and Proprietary Patient Access and Empowerment
  • 27. Page: 27 | Confidential and Proprietary
  • 28. Bi-Directional Text Messaging Program • Text messaging program • Daily reminders to take medication • Reminders for lab work • Educational tips, e.g. blood pressure monitoring • Motivational messaging • Patient surveys • Gather lab values • Pharmacist intervention for any indication of non-compliance • Clinician notified • Weekly emails to clinical staff • Refill Reminders
  • 29. Bi-Directional Text Messaging Program Increase in Refill Rates After Adoption 69.4% 89.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Pre-adoption rate 29% Growth in refill rate after adoption of text messaging program Post-adoption rate
  • 30. Page: 30 | Confidential and Proprietary Patient Education & Adherence Personalized education appended to patient‘s personal health record
  • 31. Page: 31 | Confidential and Proprietary Patient Empowerment Leading provider of oncology patient portals provides personal health record for connected patient participation 68% visit greater than 4+ times per month 50% of invited patients join portal
  • 32. Our pilot program demonstrated a 50% increase in medication adherence at month 4 of therapy for Tasigna® patients using GlowCap (vs. control group).
  • 33. Page: 33 | Confidential and Proprietary Patient Adherence Comparison Avella GlowCap Users vs. Non-Users • Early data show Avella patients with GlowCap had better adherence in their first 4 months of therapy. • The gap between the groups seems to grow overtime, especially for Tasigna patients.
  • 34. Page: 34 | Confidential and Proprietary Documented Quality & Predictable Costs
  • 35. Dispensing Scorecard Example – Q4, 2013 Pharmacy A Other specialty pharmacies 33% 34% 23% 9% 3% 45% 23% 22% 9% 1%0% 10% 20% 30% 40% 50% 0-3 4-7 8-14 15-28 29+ 45%
  • 36.
  • 37. Page: 37 | Confidential and Proprietary Study Results The intervention group showed a 12.6% improvement in adherence rate (MPR) over the course of the study.
  • 38. Page: 38 | Confidential and Proprietary Study Results Intervention group was 78% more likely not to be hospitalized: Saving $27,852 per month in healthcare costs.
  • 39. Page: 39 | Confidential and Proprietary Pathway Results Speak for Themselves… “This analysis affirms that savings on aggregated breast, colon, and lung cancer spending as high as 15% can be achieved in the first year of our pathways program concurrent with as much as a 7% reduction in hospital admissions.” © Copyright 2014, Cardinal Health. All rights reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health.
  • 40. Page: 40 | Confidential and Proprietary Program Validation: Open-Ended Questions Drug Response Type Response Count Xeloda YES 56 Xeloda NO 60 Side Effects — Was the patient aware of [Xeloda] side effects? Drug Response Type Response Count Xeloda YES 76 Xeloda NO 40 Monitoring Parameters — Did your doctor tell you about the importance of [Xeloda] lab work? Drug Response Type Response Count Xeloda YES 64 Xeloda NO 52 Indications — Does the patient know what the [Xeloda] indication is?
  • 41. Page: 41 | Confidential and Proprietary Program Validation: Counsel opt-out
  • 42. Page: 42 | Confidential and Proprietary Prior Authorization Edit for Telaprevir (Formulary Management) Goals: • Clinical evaluation of each fill – RGT • Prevent wastage – 4th fills denied Avella Intervention Clinical Pharmacist Review 325 internal PA’s submitted 6 claims denied due to inappropriate request • 4 requested for 4th fill • 2 requested for patients with VL >1,000u/ml at week 4 Total Savings of $158,772.90
  • 43. Page: 43 | Confidential and Proprietary Plan A 50%Plan B 47% Cost Savings 3% Votrient for 60 Patients Over 30 Days Monthly cost of Votrient: $9,240* per patient • Plan A: Total cost for 30 day supply • Plan B: Total cost for 15 day increments in 30 days • Anticipated 10% attrition within 30 days • $27,720 potential savings in one month for one drug if utilizing Plan B • 5% savings per month utilizing Plan B * Based on current AWP
  • 44. Page: 44 | Confidential and Proprietary In Summary • Explosive growth in SRx pipeline and costs create a demand for industry collaboration. • Communication, collaboration and technology drive adherence, improve outcomes, and reduce healthcare costs. • Specialty pharmacies are uniquely positioned to serve as the ―healthcare industry connecter‖ • Watershed moments in SRx continue – Sovaldi, Imbruvica…more to come
  • 45. Page: 45 | Confidential and Proprietary Stay Connected Rebecca M. Shanahan, Esq. CEO of Avella linkedin.com/pub/rebecca-shanahan/7/100/262 rebecca.shanahan@avella.com

Editor's Notes

  1. OPPORTUNITY TO KICK OFF AMCP SPECIALTY CONFERENCE – GREAT 2 DAYS OF PRESENTERS HIGHLIGHTING SRX AS ONE OF THE GREAT CONNECTORS OF HEALTHCARETHINKING ABOUT OTHER EXAMPLES OF USING CONNECTIONS TO IMPACT THE HUMAN EXPERIENCE– THE IPOD – YOUR MUSIC EVERYWHERE, IN ANY VENUE, FOR ANY OCCASION TO MEET YOUR UNIQUE NEEDSSTEVE JOBS GENIUS WAS USING DIVERSE EXPERIENCES TO POINT TO NON-LINEAR SOLUTIONSCOMPANIES THAT THRIVE WILL INCORPORATE BROAD VISION & FOCUS ON HUMAN EXPERIENCESWHAT DRIVES MY PERSPECTIVES? LONGEVITY = DIVERSITYCOMMUNITY & ACADEMIC TEACHING HEALTHCARE SYSTEMSTAX EXEMPT, PUBLICLY TRADED & PRIVATE EQUITY BACKED COMPANIESPHYSICIAN NETWORKSSPECIALTY & RETAIL PHARMACYDRUG WHOLESALE, DISTRIBUTION, GPO & 3PLPBMSSPEECH AS THE QUINTESSENTIAL CONNECTOR EXPERIENCECardinal – Meghan Fitzgerald, Bruce Feinberg, Jeff Hawes; AIM – Mike Backus; Navigating Cancer – Gena Cook; Frameworks MI – Danielle Lydon; PRM – Gene Eavy
  2. GROUPS WITH UNIQUE & IMPORTANT ROLES BUT WITH LIMITED ‘CONNECTION’PLANS & PBMS CONNECT NETWORKS OF PROVIDERS, MORE & MORE LOOKING FOR DECISION TREE SUPPORT FOR BEST PRACTICESPHARMACEUTICAL COMPANIES CONNECT DRUG WITH PATIENTS THROUGH PATIENT ASSISTANCE PROGRAMS & SERVICES
  3. DATA CONTINUES TO GROW EXPONENTIALLY BUT WITHOUT CONNECTIVITY, GAPS IN MEANINGFUL, ACTIONABLE INSIGHTSUNIVERSITY OF CHICAGO FACULTY PRACTICE PLAN – LOTS OF DATA BUT NO INFORMATION
  4. Providers and patients are actively adopting new technology. The “connectors” will need to leverage data and technology solutions to create real-time, mobile solutions. AVELLA prescribers on average 75% still use faxmore than 50% of the Michigan Med Oncs use paper not EMRCPT CodingBilling & Collections “Cheat Sheets”Access to Hospital and other Provider Healthcare RecordsProcessing Patients within Healthcare Silo’s
  5. Watson (by IBM as a predecessor to DeepBlue) – famous for winning Jeopardy! in years past. Even beating Ken Jennings.
  6. NOW, this is what Watson is being used for…..
  7. The explosive growth makes it even more challenging to have the sort of broad vision necessary to connect the industry.53 of the current FDA phase 3 drugs are specialty.
  8. UBER IS ANOTHER TAKE ON REVOLUTIONIZING A SIMPLE HUMAN EXPERIENCE BY CREATING NOVEL CONNECTIONS BETWEEN USERS AND SERVICE PROVIDERS. CUSTOMER EXPERIENCE IMPROVED DRAMATICALLY AND AN INDUSTRY WAS TRANSFORMED.
  9. Can thesilo’d industry of healthcare become “connected”? We believe specialty pharmacies are uniquely positioned with the touchpoints, knowledge and data to “connect” the industry.
  10. PHYSICIAN EXAMPLE OF DOSE TITRATION WITH ORAL IN REAL WORLD VERSUS CLINICAL TRIALSPAYOR EXAMPLE OF BENEFITS DESIGN PAIRED TO CPBS COMPARED TO EXPECTED COSTSPHARMA – CLINICAL TRIAL VERSUS REAL WORLD; HEAD TO HEAD WITH COMPETITORS
  11. CHRONIC DISEASES – THROUGH CLINICAL INNOVATION & SUCCESSFUL PATIENT MANAGEMENT HIV, MS and RheumatologyHIGH COST/LOW POPULATION OF PATIENTS IDENTIFIED MOLECULARLY 1) Rapidly expanding Arsenal of very costly, highly precision tools2) Increasing in scope, with the increasing understanding of the biology of cancer – the more NEW APPROACHES WILL REQUIRE SOME HIGHLY SPECIALIZED SPECIALTY PHARMACIES THAT HAVE CLINICAL COMPETENCIES THAT CAN INTEGRATE TO OTHER PROVIDERS; ALSO ACO’S AND HOSPITAL SYSTEMS ARE SEEKING THIS COMPETENCYCLOSED LOOP, REAL TIME, INFORMATION SHARING
  12. It took 50 years to introduce 27 oral compounds; yet the same number (27) was approved in the last 9 years
  13. Radiology Benefit Management effectiveness is greatly overstated.  Act as a sentinel effect, not really compelling as a savings model.
  14. One repository for all things specialty, making data user defined and easily obtainable!Gain insight into a number of variables, in Data Virtualization Cubs – Volumes, Outcomes, Contract Compliance – replacing silos of data making the business of pharmacy repeatable, predictable, for better outcomes
  15. WIZMO?REIMBURSEMENT INFORMATIONCOMPLIANCE BY MD, PATIENT, PAYOR, PHARMAPERFORMANCE SCORECARDS RELEVANT TO ALL PROVIDERS
  16. PATIENT CONVENIENCEEFFICIENCY & PRODUCTIVITY
  17. nearly 1000 providers contracted, about 750 live, rest in integration/training 500,000 patients in database, 90,000 regularly using (still need providers to get email address for a large majority to invite them)
  18. Benefits for physicians:Helps them meet at the patient centered care initiatives of health care reform (HITECH Meaningful Use, patient centered medical home, payor initiatives around patient satisfaction, ACO initiatives, 2015 Commission on Cancer standards)
  19. Glowcaps data points--adherence
  20. Avella participated in an NIH-funded adherence study in collaboration with the University of Arizona, published in the American Journal of TransplantationAdherence is a prime example of how Specialty Pharmacies can serve as a connector and impact outcomes.
  21. Multiple tools used (based on the patient needs). Not a “one-size fits all”.
  22. Oncology / Rheumatology MPR – vs. Nation –