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Case study

Full-potential prescription makes pharmacy client better

An institutional pharmacy company that delivers prescriptions to nursing homes was saddled with rising labor costs. Bain designed a new operational network and introduced industry-leading automation to hub pharmacies. Coupled with additional technology rollouts, this new system improved customer service and resulted in more than $100 million in direct savings.

  • min read

At a Glance

  • $100M+ saved after program implemented

The Story

The Situation

  • Service Co.* is a institutional pharmacy delivering millions of prescriptions to patients in nursing homes each year
  • Nursing homes expect excellent service, defined as on-time delivery and accuracy of both prescriptions and bills
  • Service Co. had expensive & rising labor costs and local pharmacies did not have the scale to afford expensive automation solutions
  • Service Co. needed to redesign its operational footprint, centralizing and automating key functions

Our Approach

Our Recommendations

Bain worked with Service Co. to implement a Full Potential Plan program:

The Results

Quality:

  • Automation improved accuracy of prescription filling
  • Competition lacks scale to match automation investment

Service:

  • Increase in on-time deliveries and accuracy of orders filled
  • Increased focus on customer service and sales

Savings:

  • $100M+ in direct savings
  • Ability to open new future locations at lower cost
"Our results demonstrated the benefits of scale combined with operational discipline, especially with regard to cost reduction initiatives that met or exceeded established goals. We substantially completed the Full Potential Plan, with the program reaching its targeted annualized savings run rate by year-end."
CEO, Service Co.

* We take our clients' confidentiality seriously. While we've changed their names, the results are real.

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