How Centralized Distribution Affects Healthcare

340B Insight

Centralized distribution models can help health systems streamline day-to-day operations, including mitigating drug shortages, and maximizing contract compliance and efficiency. Jake Olson, 340B pharmacy manager at Froedtert Memorial Lutheran Hospital in Milwaukee, Wisconsin, joins us to discuss how centralized distribution models have operationalized Froedtert’s 340B program.

Mitigating Drug Shortages

Inventory optimizing helps ensure organizations meet their resource demands. Jake discusses minimizing repetitions within an organization’s entities by centralizing supply ordering to a single location. For Froedtert, this means purchasing bulk drugs to one large warehouse and then redistributing among hospitals.

Contract Compliance

Froedtert’s 60,000 square foot drug distribution warehouse is centrally located in Milwaukee. There, Jake works alongside Froedtert’s contract manager, a set up that simplifies in-person communication regarding the complex factors of compliance, negotiation, and management. The process boosts speed, efficiency, and clarity among the team.

Patient Care

Jake and Froedtert consider centralized distribution models essential for improving patient care. While Jake’s model may not suit every health system, he believes organizations can adapt distribution methods to their unique needs, simplifying vendor, client, and inventory management for better efficiency and improved patient care.

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