7. Negotiate better contracts
Hospitals should constantly review contracts with distributors, according to Rosner and Knoer, but they should also be aware of the impact pharmacy benefit managers (PBMs) can have on a bottom line.
Even when hospitals and health systems are vigilant in monitoring pricing, certain contracts may not be transparent and difficult to navigate. PBM contracts are an example because discounts for certain clients can raise prices for others, say Rosner and Knoer. Hempstead says firms are available that audit PBM contracts to help hospitals identify when they are paying too much.
"These contracts are very complicated and PBMs can make it hard to figure out," Hempstead says. "Getting a PBM contract audited can help hospitals make sure they really understand what they are paying."