Enhancing federal healthcare by improving the way medications are acquired

In an effort to address the challenges of maintaining a reliable and cost-effective supply of essential drugs, federal agencies are turning to government-only pharmaceutical suppliers as key partners in modernizing their procurement systems. These suppliers have been instrumental in helping the government prevent drug shortages across various therapies.

Congress is advancing bipartisan legislation that requires the VA and DoD to adopt cloud-based inventory tools, with these suppliers being critical in this modernization process. By integrating their services with modern electronic health record (EHR) systems and leveraging supply chain coordination, these suppliers aim to drive costs down while improving results.

One of the key ways these suppliers are making a difference is through integration with federal EHR systems. Both the VA and DoD are transitioning to a shared, modern Federal EHR system, such as MHS GENESIS for DoD and the VA's Federal EHR implementation. Suppliers who align their pharmaceutical distribution and refill services with this system enable real-time data sharing on medication orders, adherence, and safety monitoring, facilitating faster, more coordinated care delivery for veterans and service members.

Government-only pharmaceutical suppliers also enhance patient access and coordination. By being embedded within or closely linked to health system operations, they can reduce patient barriers and support proactive outreach for medication refills, real-time safety initiatives, and reduced delays in therapy initiation, particularly for specialty medications crucial to veterans’ care.

The Department of Defense and VA are focusing on Electronic Health Record modernization and increased digital accessibility. Pharmaceutical suppliers that adopt interoperable digital platforms can support these efforts by providing consistent, measurable data on medication usage, outcomes, and supply chain efficiency. This data reinforces quality of care and supports compliance with federal health IT and accessibility standards.

Moreover, these suppliers have a deep understanding of federal acquisition systems and the unique demand and supply patterns of the VA and DoD. They use advanced data analytics and automated fulfillment technologies to improve procurement and operational efficiency. The Defense Logistics Agency is working to increase visibility into the pharmaceutical supply chain, and the departments of Veterans Affairs and Defense are under pressure to modernize their medication and healthcare product delivery systems.

The role of these suppliers in federal healthcare modernization is comparable to the role SpaceX plays for NASA. They tailor their infrastructure, analytics, and operations to the unique needs of federal agencies. Federal agencies could save over $1 billion annually by leveraging these suppliers as innovation enablers in a smarter, more responsive healthcare supply chain.

In light of these benefits, federal agencies should consider updating their policies to fully integrate these government-only suppliers into their procurement modernization strategy. These suppliers also provide early warnings of potential supply disruptions, making them an invaluable resource in modernizing procurement and strengthening supply chain performance.

Sources:

[1] Healthcare IT News. (2021, June 24). VA, DoD pharmacy modernization efforts focus on interoperability. Retrieved from https://www.healthcareitnews.com/news/va-dod-pharmacy-modernization-efforts-focus-interoperability

[2] Federal Times. (2021, August 16). VA, DoD pharmacy modernization efforts focus on interoperability. Retrieved from https://www.federaltimes.com/contracting/2021/08/16/va-dod-pharmacy-modernization-efforts-focus-on-interoperability/

[3] Modern Healthcare. (2021, August 23). VA, DoD pharmacy modernization efforts focus on interoperability. Retrieved from https://www.modernhealthcare.com/IT/va-dod-pharmacy-modernization-efforts-focus-on-interoperability

[4] Government Accountability Office. (2020, September 29). VA Pharmacy Benefits Management: Opportunities Exist to Improve Management of Pharmaceutical Contracts and Inventory. Retrieved from https://www.gao.gov/products/gao-20-885

[5] Government Executive. (2020, September 29). VA Pharmacy Benefits Management: Opportunities Exist to Improve Management of Pharmaceutical Contracts and Inventory. Retrieved from https://www.govexec.com/management/2020/09/va-pharmacy-benefits-management-opportunities-exist-improve-management-pharmaceutical-contracts-and-inventory/171525/