340B Impact

Overview

This Generic Optimization page provides real-time analytics identifying alternate generic products as opportunities for purchasing consideration to potentially increase savings over time. These opportunities are specific to your health system since analytics are based on your data and go above and beyond standard pricing comparison.

The analytics are specifically focused on your McKesson accounts that split orders through 340B Architect. Contract pharmacy accounts are excluded. 

The following factors are considered when identifying opportunities:

• Recent generic purchases by account type over the past 90 days
• Equivalent products based on Medi-Span
• Packaging considerations
  • Package size and package quantity for unit-level comparison
  • Unit Dose vs. Unit of Use historical purchase preference
• Recent accumulation volumes by account type over the past 90 days
• Current pricing for all equivalent products
• Split by Price settings in 340B Architect
• Parent/Child PID setup in 340B Architect
• Daily check of inventory availability at your local McKesson distribution center
• “Winner’s Only” consideration to ensure products are only presented as opportunities if there is a net benefit

Realized Savings

Realized Savings is a cumulative amount of the total dollar benefit for taking advantage of generic opportunities.  For every opportunity that is responded to by making a purchase, 340B Impact tracks and compares the unit price of each new purchase against the previous purchased price. By default the Realized Savings amount displayed is the sum of all PIDs with tracked opportunities. This amount will automatically update when a PID is selected from the Savings Opportunity by PID table. 

Savings Opportunity by PID

This table displays PIDs with active Potential Savings Opportunities. A PID must be selected to view the opportunities in the sections below. Once a PID is selected all other tables will update. For parent-child PID relationships, the table only lists the parent PID and name, but the Potential Savings Opportunity amount is for all PIDs in the relationship. 

PID Details

After selecting a PID from the Savings Opportunity by PID table, the PID and account details are displayed here. For parent-child relationship PIDs, the parent and child PIDs, names and accounts will be displayed here.

Top 25 Opportunities

An opportunity is an alternative generic product within an Equivalent Group that has potential to increase savings for your health system if purchased. This table ranks the Top 25 Opportunities by Potential Savings for the selected PID(s). 

• Generics data is recalculated weekly and new opportunities may be added if they exceed the Potential Savings value of those currently presented in the Top 25 Opportunities.
• Each opportunity considers the data from 90 days prior to the Date Identified.
• Each Equivalent Group is frozen for 30 days starting from the Date Identified to avoid constantly shifting alternatives.
• If an opportunity has not been purchased after 30 days from the Date Identified, the equivalent group is unfrozen and recalculated. 
• If an opportunity is purchased within 30 days of the Date Identified, it will be moved from the Top 25 Opportunities table to the Realized Savings by Drug table.
• Inventory checks occur daily at the selected PID's local McKesson distribution center for each presented opportunity. If inventory is not available for an opportunity it will be removed from the table. 

Realized Savings by Drug 

For the selected PID, opportunities that have acted upon are moved from the Top 25 Opportunities table to the Realized Savings by Drug table which shows the actual savings for each new purchase compared to the historical average baseline price. The opportunities and their data remain frozen and used for the Realized Savings calculation.

• Opportunities for each Equivalent Group will be analyzed every 90 days from the Date Identified. If the opportunity is no longer the lowest cost item, it is removed from the table and will not contribute to Realized Savings going forward.
• Inventory checks occur daily at the selected PIDs local McKesson distribution center for each tracked opportunity. If inventory is not available for 2 of the prior 7 days, it is removed from the table and will not contribute to Realized Savings going forward.