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Article By:

Frank Sirianni BEc(Hon) MEc

Pharmacy IT

Tuesday, 4 July 2006

It is estimated that Australian pharmacy spends in excess of $29 million per annum on IT and computers (ignoring hardware costs). What are the outcomes from this investment?

Background
In the late 1970's entrepreneurial pharmacists developed a range of computer based tools to replace the typewriter. Labels were automated and limited patient records were maintained.

These systems were crude to say the least and most relied on 'home made' computers with their own proprietary operating systems. Early systems cost approximated $35,000 [that's almost $97,500 in today's dollars] and comprised 2 label printers and limited hard-disk storage (generally floppy disks only).

With the introduction of low cost benchmark brands (i.e. NEC and IBM), in 1983 the Guild launched a 10MB system with 2 printers for just over $10,000. This slashed the cost by more than 50%!

By the way, in 1983 approximately 15 companies supplied Dispensary Systems!

Until 1983, approximately 50 systems had been installed throughout Australia. Technology adoption was voluntary. By the late 80's, with the acceptance of claims disks for NHS claims and incentives for pharmacists, virtually all pharmacies had adopted dispensary management systems.

By the mid-80's, with sales of dispensary systems slowing, many pharmacy computer companies developed and offered Point-of-Sale/Inventory Management Systems.

Product / Technology options
Broadly the market now comprises three types of systems specifically designed and maintained for pharmacy:
1. Dispensary Management Systems
2. Clinical Records and Information Systems
3. Point-of-Sale/Inventory Management Systems

In addition, many pharmacies may have accounting, payroll, and specific business management systems.

Dispensary Management Systems
These systems are at the core of pharmacy IT and are now universally adopted. The key features of these systems are patient records and claims management. Many also offer links to pharmaceutical data bases, drug interaction checking, and practice management features. Some also offer pharmacy specialist packages for nursing homes and other areas of specialty practice.

Hardware is relatively streamlined and software well proven and tested. Sophisticated software that has completed a number of evolutions and is subject to clear professional practice guidelines.

Clinical Records and Information Systems
This is a relatively new area that seeks to address the increasing needs of consultant pharmacists and general information requirements of all pharmacists.

While dispensing systems are generally process driven and rated to the 'activity' of dispensing, these systems tend to be information and communication focused. Whether this be patient, carer, or other health provider communication.

These systems may be add-ons to existing desktop systems or portable computers (i.e. hand-held devices or notebook computers).

Point-of-Sale/Inventory Management Systems
The third category of system is Point-of-Sale (POS) systems. These have been around for many years but are yet to achieve significant market penetration when compared to Dispensary systems.

The key driver was initially customer accounts and order management. For these reasons, the wholesalers and retail groups have been a major player in this segment.

The systems also provide an inventory management capability. However, to date, this has been of limited application to pharmacy. Perhaps the holy grail for pharmacy POS systems but rarely found.

Key success drivers
At the risk of over simplifying pharmacy computers, they remain a tool for better practice management. Their success and benefits are dependent upon the quality of data input and the integrity with which the data is managed.

Discipline, back up, security, and system management are all important as to the value of systems to particular pharmacies.