Section 8.5: Productivity, SLA, and Turnaround-Time Metrics
Defining and tracking key operational metrics. Learn how to measure team productivity, adherence to Service Level Agreements (SLAs), and critical turnaround times (e.g., time-to-fill, PA approval time).
Productivity, SLA, and Turnaround-Time Metrics
Mastering the Numbers: From Measuring Work to Proving Value.
8.5.1 The “Why”: “You Can’t Manage What You Don’t Measure”
In your community practice, the primary metric is often simple: speed and volume. How many scripts did we fill today? How long is the wait time? While important, these metrics only tell a small part of the story. You also implicitly track quality through customer feedback and error rates, but it’s often less formalized.
In specialty pharmacy, measurement is not optional; it is the lifeblood of the operation. The famous management maxim, “You can’t manage what you don’t measure,” is amplified tenfold. Why? Because specialty pharmacy is a game of microscopic margins, astronomical drug costs, complex clinical requirements, and contractual obligations with razor-thin tolerances. Operating “by feel” or “tribal knowledge” isn’t just inefficient; it’s financially ruinous and clinically dangerous.
Metrics are the instruments on your dashboard. They tell you:
- Are we efficient? (Productivity: Are we using our expensive staff time effectively?)
- Are we safe and effective? (Quality: Are we making errors? Are our patients adherent? Are they getting better?)
- Are we meeting our promises? (SLAs: Are we answering the phone fast enough for our payer contracts? Are we meeting manufacturer reporting deadlines?)
- Are we fast enough? (TATs: Is it taking too long to get a patient started on therapy?)
- Are we financially healthy? (Financial Metrics: Are we profitable enough to reinvest in our services?)
Without these numbers, you are flying blind. You cannot identify bottlenecks, coach underperforming staff, justify new hires, prove your value to payers, or pass an accreditation audit. This section is your pilot training for that dashboard. As a CASP, you won’t just *look* at these numbers; you will be expected to *understand* them, *interpret* them, *explain* them, and *use* them to drive continuous improvement.
Pharmacist Analogy: Driving Without a Dashboard vs. Flying a 747
Driving your car relies on a few key metrics: speed (speedometer), fuel level (gas gauge), and maybe engine temperature. You can largely drive “by feel,” listening to the engine and watching the road. It’s a relatively simple system.
Running a specialty pharmacy is like captaining a Boeing 747 through a storm. You have hundreds of “passengers” (patients) whose lives depend on your decisions. You cannot fly this $200 million machine “by feel.” You are utterly reliant on your instrument panel:
- Productivity Metrics (Engine RPM, Fuel Flow): Are my engines (staff) running efficiently? Am I burning too much fuel (wasting time)?
- Quality Metrics (Altitude, Cabin Pressure, System Warnings): Are we flying safely? Is the cabin (patient health) stable? Are there any critical errors?
- SLA Metrics (Air Traffic Control Communications): Are we responding to ATC (payers/manufacturers) within the required time? Are we hitting our arrival slots?
- TAT Metrics (Ground Speed, Time-to-Destination): How fast are we actually moving towards our goal (getting the patient on therapy)?
- Financial Metrics (Fuel Remaining, Payload Value): Do we have enough resources to complete the journey? Is the flight profitable?
As the captain (a pharmacy leader or CASP), you must constantly scan these instruments, understand what they mean *in combination*, and make real-time adjustments to ensure a safe and successful flight. Ignoring a flashing warning light (a missed SLA) or a dropping altitude (poor adherence) can lead to disaster. This section teaches you how to read that complex instrument panel.
8.5.2 The Metric Constellation: Key Categories of Measurement
While there are dozens, even hundreds, of potential metrics, they generally fall into five core categories. Understanding these categories helps you organize your thinking and build a balanced “scorecard” for your pharmacy’s performance.
1. Productivity
Measures the efficiency of resource utilization (primarily staff time). How much work is getting done per unit of input?
2. Quality & Safety
Measures the accuracy and effectiveness of the work. Are we doing things correctly? Are we preventing errors? Are patients benefiting?
3. Service Level Agreements (SLAs)
Measures adherence to contractual obligations with external partners (payers, manufacturers). Are we meeting their required service standards?
4. Turnaround Times (TATs)
Measures the speed of key processes. How long does it take to get from Step A to Step B?
5. Financial
Measures the profitability and fiscal health of the operation. Are we making money while delivering quality care?
A well-run specialty pharmacy tracks metrics across *all* these categories. Over-focusing on one (like Productivity) at the expense of others (like Quality) inevitably leads to failure. The goal is a balanced scorecard.
8.5.3 Masterclass 1: Productivity Metrics – Measuring Efficiency
Labor is the single largest controllable expense in a pharmacy. Productivity metrics help you understand if you are getting a good return on that investment. Are your technicians completing enough tasks per hour? Are your pharmacists managing an appropriate caseload?
These metrics are almost always derived directly from your workflow software, which timestamps every task completion.
Masterclass Table: Common Specialty Pharmacy Productivity Metrics
| Metric | How It’s Measured | Who It Applies To | Typical Goal (Example) | Potential Pitfalls |
|---|---|---|---|---|
| Referrals Processed per Hour | (Total New Referrals Completed) / (Total Intake Tech Hours Worked) | Intake Technicians | 2 – 4 per hour | Doesn’t account for complexity (clean eRx vs. messy fax). |
| Benefit Investigations Completed per Day | (Total BIs Marked ‘Financially Cleared’) / (Total BI Tech FTEs) | Benefit Investigation Technicians | 15 – 25 per day | Doesn’t account for difficulty (simple copay card vs. complex multi-step appeal). |
| Prescriptions Clinically Verified per Hour | (Total Rxs Verified by RPh) / (Total Clinical RPh Hours Worked) | Clinical Pharmacists | 5 – 10 per hour | Highly variable based on new vs. refill, disease state complexity. Discourages thoroughness if goal is too high. |
| Orders Fulfilled per Shift | (Total Orders Packed & Shipped) / (Total Fulfillment Tech FTEs per Shift) | Fulfillment Technicians | 50 – 100 per shift | Can be skewed by automation levels and order complexity (single bottle vs. large cold chain). |
| Adherence Calls Completed per Day | (Total Adherence Call Notes Completed) / (Total Adherence Coordinator FTEs) | Adherence Coordinators / Techs | 30 – 50 per day | Doesn’t capture call *quality* or time spent on complex barrier resolution. |
The Perils of Productivity Metrics: Quantity vs. Quality
Productivity metrics are essential but dangerous if misused. If management focuses *only* on “tasks per hour,” they incentivize staff to cut corners, rush through checks, and potentially make errors.
Best Practice: Case-Mix Adjustment & Balanced Scorecards
1. Case-Mix Adjustment: Sophisticated systems assign “Relative Value Units” (RVUs) to tasks based on complexity. A complex new oncology referral might be worth 3.0 RVUs, while a simple refill BI is worth 0.5 RVUs. Measuring “RVUs per hour” is fairer than “tasks per hour.”
2. Balanced Scorecards: Never evaluate staff *only* on productivity. Performance reviews should incorporate productivity metrics alongside quality metrics (error rates), adherence to SOPs (audit results), and patient satisfaction scores. This prevents rewarding speed at the expense of safety.
8.5.4 Masterclass 2: Quality & Safety Metrics – Measuring Effectiveness
While productivity measures efficiency, quality metrics measure effectiveness and safety. Are we doing the *right* things, *correctly*? These are paramount for patient safety, clinical outcomes, and accreditation.
Key Quality & Safety Metrics
-
Dispensing Accuracy Rate:
- Definition: (Total Doses Dispensed – Dispensing Errors) / (Total Doses Dispensed) x 100%
- How Measured: Tracking errors caught during final pharmacist check (near miss) or reported post-dispensing (actual error). Requires a robust error reporting culture.
- Goal: > 99.9% (Approaching “Six Sigma” levels is the aspiration).
- CASP Role: Analyzing error trends (e.g., specific drug, specific tech), performing Root Cause Analysis (RCA), implementing corrective actions (SOP changes, training).
-
Clinical Intervention Rate & Impact:
- Definition: Number and type of pharmacist interventions documented (e.g., dose change, side effect management, adherence barrier solved). Often categorized by significance (e.g., NCC MERP scale).
- How Measured: Pharmacists documenting interventions using standardized templates in the workflow software.
- Goal: Varies, but demonstrates the clinical value pharmacists provide. Highlighting interventions that prevent hospitalization or ER visits is key.
- CASP Role: Leading clinical initiatives, documenting high-impact interventions, reporting this value back to payers/manufacturers.
-
Medication Adherence Rate (e.g., PDC – Proportion of Days Covered):
- Definition: Measures the percentage of days a patient had medication available over a defined period. Calculated as (Days’ Supply Dispensed) / (Days in Period).
- How Measured: Calculated automatically by workflow software based on fill dates and days’ supply. Often measured across specific drug classes or payer populations.
- Goal: > 85-90% is often the target for specialty medications (higher than non-specialty). Critical for PBM network contracts and Star Ratings.
- CASP Role: Overseeing adherence outreach programs, analyzing adherence data to target high-risk patients, developing strategies to overcome barriers identified in calls.
-
Patient-Reported Outcomes (PROs):
- Definition: Measures of symptoms, side effects, quality of life, or disease control *reported directly by the patient* (often via surveys in portals or during adherence calls).
- How Measured: Structured questionnaires integrated into workflow (e.g., “Rate your pain on a scale of 1-10,” “Have you missed doses due to side effects?”).
- Goal: To track clinical response and identify issues *before* they lead to non-adherence or hospitalization. Demonstrates patient-centric care for accreditation.
- CASP Role: Designing PRO collection tools, analyzing PRO data to identify trends (e.g., a spike in nausea reports after a formulary change), using PROs to tailor patient interventions.
-
Patient Satisfaction Scores:
- Definition: Measures patient perception of service quality, communication, and overall experience.
- How Measured: Typically via third-party surveys (like Press Ganey or Net Promoter Score – NPS) sent after dispensing or counseling.
- Goal: High scores are crucial for payer/manufacturer relationships and marketing.
- CASP Role: Analyzing feedback, identifying areas for service improvement (e.g., long hold times, confusing communication), implementing changes based on patient input.
8.5.5 Masterclass 3: Service Level Agreements (SLAs) – Meeting Contractual Promises
SLAs are the contractual promises your pharmacy makes to external partners, primarily PBMs (in their network agreements) and pharmaceutical manufacturers (in their data reporting or limited distribution agreements). These are not aspirational goals; they are often tied to financial penalties or network continuation. Missing SLAs can cost millions or get you kicked out of a network.
SLAs typically focus on timeliness and responsiveness, particularly in patient and provider communication.
Masterclass Table: Common Specialty Pharmacy SLAs
| SLA Category | Specific Metric Example | Typical Requirement (Example) | Why It Matters | How It’s Measured |
|---|---|---|---|---|
| Call Center Performance (Crucial for PBM contracts) | Average Speed of Answer (ASA) | Answer 80% of calls within 30 seconds | Patient and provider access; prevents frustration and abandonment. | Phone system reporting (ACD – Automatic Call Distributor). |
| Call Abandonment Rate | < 5% of calls abandoned before answer | Patients giving up due to long waits reflects poor service. | Phone system reporting (ACD). | |
| First Call Resolution (FCR) | Resolve > 75% of inquiries on the first call | Efficiency; avoids multiple calls for the same issue. | Requires tracking in workflow software (manual or automated). | |
| Referral Processing (Important for prescribers & patients) | Referral Acknowledgement Time | Acknowledge receipt of referral within 4 business hours | Lets prescriber know you received it and are working on it. | Timestamps in workflow software (Fax receipt to Intake Note creation). |
| Time to Benefit Investigation Start | Initiate BI within 24 business hours of clean referral receipt | Ensures timely start to the access process. | Timestamps in workflow software (Intake Complete to BI Started). | |
| Manufacturer Data Reporting (Critical for LDN access) | Data Submission Deadline | Submit required dispensing/clinical data by 5th business day of month | Manufacturers rely on this data for safety monitoring, REMS, and market insights. Failure = breach of contract. | Internal tracking of data file submission confirmation. |
| Clinical Outreach (Often in PBM Quality contracts) | Adherence Call Completion Rate | Attempt/complete adherence call for > 90% of eligible patients prior to refill | Demonstrates proactive patient management. | Workflow software reporting on adherence task completion rates. |
SLA Penalties: The Financial Hammer
Payers and manufacturers take SLAs seriously. Contracts often include specific financial penalties for failure to meet targets. Examples:
- PBM Network Contract: “Failure to meet the ASA target of < 30 seconds for 3 consecutive months may result in a 1% reduction in reimbursement for all claims." (This can be millions of dollars).
- Manufacturer LDN Contract: “Failure to submit accurate and timely data for 2 consecutive reporting periods may result in suspension or termination from the limited distribution network.” (This means losing access to the drug entirely).
Your Role as a CASP: You must understand the specific SLAs your pharmacy is bound by. You will be involved in monitoring performance, identifying the root causes of missed SLAs (e.g., understaffing, inefficient processes), and implementing corrective action plans.
8.5.6 Masterclass 4: Turnaround Time (TAT) Metrics – Measuring Speed of Service
While SLAs focus on responsiveness to external partners, TAT metrics focus on the internal speed of your core workflow. How long does it actually take to get a patient from Step A to Step B? These metrics are critical for patient satisfaction, clinical outcomes (delays in therapy initiation can be harmful), and identifying internal bottlenecks.
TATs are measured using the timestamps automatically captured by your workflow software as a patient moves between queues.
Masterclass Table: Critical Specialty Pharmacy TAT Metrics
| Metric | Definition | How Measured (Start $\rightarrow$ End Timestamps) | Typical Goal (Example) | What It Tells You |
|---|---|---|---|---|
| Referral $\rightarrow$ Intake Complete TAT | Time from referral receipt to having a clean, actionable file built. | Fax/eRx Timestamp $\rightarrow$ Intake “Complete” Timestamp | < 8 Business Hours | Efficiency of your Intake team; quality of incoming referrals. |
| Intake $\rightarrow$ BI Complete TAT | Time spent actively investigating benefits and securing authorization/funding. | Intake “Complete” Timestamp $\rightarrow$ BI “Financially Cleared” Timestamp | < 48 Business Hours (Highly variable based on PA complexity) | Efficiency of BI team; complexity of payer/funding landscape. |
| BI Complete $\rightarrow$ Clinical Verify TAT | Time spent by pharmacist performing clinical review and verification. | BI “Financially Cleared” Timestamp $\rightarrow$ RPh “Verified” Timestamp | < 4 Business Hours | Pharmacist workload; efficiency of lab retrieval; complexity of clinical rules. |
| Verify $\rightarrow$ Ship TAT | Time from pharmacist approval to package leaving the building. | RPh “Verified” Timestamp $\rightarrow$ Shipping Carrier Scan Timestamp | < 24 Business Hours (often same-day for orders verified before cutoff) | Efficiency of fulfillment team, inventory availability, courier pickup times. |
| Overall Time-to-Fill (TTF) / Time-to-Therapy (TTT) | Total time from initial referral receipt to first dispense/shipment. | Fax/eRx Timestamp $\rightarrow$ Shipping Carrier Scan Timestamp | < 5-7 Business Days (often a key metric for payers/manufacturers) | The ultimate measure of your end-to-end process efficiency. Highlights systemic delays. |
Using TAT Data to Find Bottlenecks
TAT metrics are most powerful when viewed *sequentially*. If your Overall TTF is high (e.g., 10 days), you don’t just tell everyone to “work faster.” You dissect the *sub-component* TATs:
Example Analysis:
– Referral $\rightarrow$ Intake TAT = 6 hours (Good!)
– Intake $\rightarrow$ BI Complete TAT = 7 days (Bad! This is the bottleneck!)
– BI Complete $\rightarrow$ Verify TAT = 3 hours (Good!)
– Verify $\rightarrow$ Ship TAT = 18 hours (Good!)
Conclusion: The problem isn’t Intake, Pharmacists, or Fulfillment. The delay is happening during Benefit Investigation. Now you can dig deeper: Is it PA delays? Understaffing in BI? Inefficient processes for finding funding? TAT data focuses your improvement efforts.
8.5.7 Brief Look: Key Financial Metrics Influenced by Operations
While a full financial deep dive is beyond the scope of this operational module, as a CASP and potential leader, you must understand how operational performance directly impacts the bottom line. Poor efficiency or quality doesn’t just hurt service; it destroys profitability.
- Gross Margin per Prescription: (Revenue – Cost of Goods Sold) / Revenue. Low margins mean operational efficiency is paramount. Every wasted minute costs money.
- DIR Fees (Direct & Indirect Remuneration): PBM clawbacks based on quality metrics (like adherence rates). Poor adherence = lower DIR scores = massive financial penalties. Your clinical programs directly impact this.
- Inventory Turns: How quickly you sell through your inventory. Slow turns tie up cash and increase risk of expired drug waste (especially critical for expensive specialty drugs). Efficient workflow = faster turns.
- Cost-to-Fill: Total operational cost (labor, shipping, overhead) divided by total prescriptions filled. Lowering this through efficiency and automation is key to profitability.
Your Takeaway: Operational excellence (efficiency, quality, speed) is not separate from financial health; it is the driver of financial health in specialty pharmacy.
8.5.8 Bringing It All Together: The Operational Dashboard
Data is useless if it’s buried in spreadsheets. The goal is to create a visual, real-time “dashboard” that allows managers and front-line staff to see performance at a glance. Most modern workflow software includes customizable dashboard features, or pharmacies use business intelligence tools (like Tableau or PowerBI) to pull data together.
Example Specialty Pharmacy Operations Dashboard (Conceptual)
Key SLA Tracker: Call Center ASA (Goal: < 30s)
Adherence Rate: Humira (Goal: > 90% PDC)
Using the Dashboard for Action
A dashboard isn’t just wallpaper; it’s a tool for immediate action and long-term improvement.
- Daily Huddles: Teams start the day reviewing the dashboard. “Okay team, PAs pending > 48h is up to 15. What’s the barrier? Let’s focus our calls there today.”
- Performance Coaching: A manager can review individual dashboards with staff. “Sarah, your tasks per hour are great, but I see your QA audit score was low last week. Let’s review the SOP together to make sure we’re hitting both speed *and* accuracy.”
- Identifying Trends: If Overall TTF starts creeping up week after week, the dashboard highlights this, prompting a deeper investigation (a “Process Improvement” project) into the root cause.
- Staffing Decisions: If the “Referrals Received” widget is consistently high and the “Intake TAT” is climbing, it provides objective data to justify hiring another Intake Technician.
8.5.9 Conclusion: The Data-Driven Pharmacist Leader
Mastering operational metrics transforms you from a clinical practitioner into a data-driven operational leader. In the world of specialty pharmacy, clinical excellence alone is not enough. You must also demonstrate efficiency, quality, compliance, and value through objective, quantifiable data.
Understanding Productivity, Quality metrics, SLAs, TATs, and their financial implications allows you to:
- Speak the language of management and payers.
- Identify and solve operational problems with precision.
- Lead teams effectively by setting clear, measurable goals.
- Prove the value of your pharmacy’s services in a competitive market.
As a Certified Advanced Specialty Pharmacist, your ability to leverage data is not just a desirable skill; it is a core competency. It is the final piece of the puzzle, integrating your clinical knowledge (Modules 1-7) with operational mastery (Module 8) to become a truly indispensable asset to any specialty pharmacy organization.