Latest / Becker’s Healthcare Podcast / Tracey Spangenberg, Associate Chief Pharmacy Officer at UC San Diego Health
Transcript
- 0:00This is Laura Dierdo with the Becker's Healthcare
- 0:02podcast. I'm thrilled today to be joined by
- 0:04Tracy Spangenberg,
- 0:07associate chief pharmacy officer at UC San Diego
- 0:09Health. Tracy, it's a pleasure to have you
- 0:11on the podcast today.
- 0:13Laura, thanks so much. I'm excited to be
- 0:15here. I appreciate the invite.
- 0:18Absolutely. Now I'm looking forward to our conversation
- 0:21and digging a little bit deeper into some
- 0:23of your recent initiatives
- 0:25as well as how you're thinking about the
- 0:26future. But before we dive in, can you
- 0:28tell us a little bit more about yourself
- 0:30as well as UC San Diego Health?
- 0:32Well, thank you so much. Yes. I'm a
- 0:35pharmacy graduate. Actually, I'm a a foreign pharmacy
- 0:38graduate. I graduated from the University of KwaZulu
- 0:41Natal in South Africa,
- 0:44and had the distinct,
- 0:46honor of being able to,
- 0:48work
- 0:49over in The US.
- 0:51Came over in in the nineties,
- 0:54and started my career in retail operations,
- 0:58was
- 0:59a regional
- 1:00retail
- 1:01director,
- 1:03for,
- 1:04one of the
- 1:05third largest
- 1:06chain drugstores, which gave me a a tremendous
- 1:09perspective
- 1:10about just how hard it is in that
- 1:13retail
- 1:14setting both to run a business model with
- 1:17very slim margins, but also to make sure
- 1:20we we don't burn pharmacists out.
- 1:23After that, I I moved over into
- 1:25mail order operations with the third largest,
- 1:28mail order, facility and was VP of operations
- 1:32there,
- 1:34for mail service,
- 1:36and then was just super excited to,
- 1:40come over into health system pharmacy,
- 1:43bringing those
- 1:45different perspectives and backgrounds into,
- 1:48running the
- 1:49outpatient
- 1:51retail pharmacy operations for UC San Diego Health.
- 1:54So,
- 1:55that's that's it in a nutshell.
- 1:59Vad, what great experience in learning lessons you've
- 2:02had throughout your career and then to be
- 2:03able to bring that to your current role,
- 2:05I can imagine is really beneficial.
- 2:08I I'm curious. Can you tell us a
- 2:09little bit more about a project or initiative
- 2:11you led in the last year? What did
- 2:13you do and what were the results?
- 2:15You know, obviously, many.
- 2:17Health systems are so complex, and that's what
- 2:20makes them so exciting and interesting.
- 2:23But I think the most,
- 2:24important one,
- 2:26which has long term impact for the health
- 2:28system
- 2:30is establishing a central,
- 2:32bioauthorization
- 2:33team for pharmacy benefit.
- 2:37As you know,
- 2:38prior auths are just the bane of existence
- 2:41for providers and for patients.
- 2:44And our
- 2:45pharmacy technicians with their knowledge and experience,
- 2:49do it better, you know, just,
- 2:51for having years of experience in in navigating
- 2:54that prior auth space.
- 2:56So,
- 2:57we were able to get executive support to
- 3:00start the first phases of our prior authorization
- 3:05team.
- 3:06And I think,
- 3:08really, the
- 3:09the complexity
- 3:11of our
- 3:12integrated
- 3:13EMR workflows,
- 3:16was probably one of the biggest
- 3:18learnings,
- 3:20as you try to centralize something
- 3:23that is
- 3:24connecting
- 3:25multiple clinics,
- 3:27multiple business models,
- 3:29into one collective unit.
- 3:32It requires a huge amount of change management,
- 3:35a lot of stakeholder,
- 3:37investment
- 3:39and time.
- 3:40And we we really focus the first six
- 3:44months
- 3:45of 2025
- 3:47on foundational
- 3:49things,
- 3:50like developing standard work,
- 3:53really truly understanding the workflows and the workload
- 3:56variability.
- 3:58A lot of
- 4:00focus on technology,
- 4:01trying to move everybody onto one
- 4:04prior authorization
- 4:06platform,
- 4:08lots of training,
- 4:09lots of
- 4:10communication
- 4:11for that trench management component.
- 4:14And so it took us about
- 4:17seven months before we
- 4:19did our initial launch,
- 4:22and have worked very hard and closely
- 4:25on understanding what's working, what's not working, process
- 4:28improvement,
- 4:31and excited to say, you know, we've,
- 4:34really launched and and supported now,
- 4:38four of the biggest, largest clinic
- 4:41areas at UC San Diego,
- 4:43with full prior authorization
- 4:45support,
- 4:46and excited to see that it is
- 4:49both providing
- 4:51tremendous
- 4:52improvements in patient access.
- 4:56It's
- 4:57relieved a huge burden of, you know, providers
- 5:00in having to handle a lot of that
- 5:02administrative
- 5:03functions with prior authorization.
- 5:06But in addition, it's providing us an opportunity
- 5:11to have our health system pharmacies
- 5:13fill the prescriptions for these patients
- 5:16and so has been,
- 5:18very beneficial
- 5:20in revenue growth and prescription growth for for
- 5:23the system. So,
- 5:25early days, we've got a lot to do
- 5:28and learn,
- 5:29but so far,
- 5:30the initial numbers are are looking
- 5:33fabulous and the initial feedback
- 5:36is very positive. So,
- 5:39excited for the next phases and for us
- 5:41to continue growth,
- 5:43on this initiative.
- 5:46That's fantastic to hear. You know, really impressive
- 5:48to think about the scope of a project
- 5:51like that and and being able to actually
- 5:53put something together that makes a measurable difference,
- 5:57in a short period of time is, incredible.
- 5:59And so, you know, when you think about
- 6:02that process, and I know you mentioned being
- 6:04able to learn and iterate along the way,
- 6:06what was the most important thing you learned
- 6:08and and adjusted,
- 6:10as you were in the development phase?
- 6:12You know, it's a good question. And I
- 6:14think,
- 6:15our our biggest adjustment
- 6:17was
- 6:19bringing in multiple
- 6:21teams
- 6:21together in one unit
- 6:24that had never
- 6:26operated as a team before.
- 6:29And so disparate,
- 6:32platforms
- 6:33that they were working on, disparate,
- 6:36you know, standard work,
- 6:38disparate
- 6:39perspectives about, you know, what the mission was
- 6:42and,
- 6:44you know, really
- 6:45the criticality
- 6:47of being very
- 6:48prescriptive and deliberate in change management.
- 6:52And I think the key
- 6:55for our success in that area, and I
- 6:57think it's still work in progress,
- 6:59was really having
- 7:01those that are directly doing the work
- 7:05be a big part
- 7:07of the planning
- 7:08and of the input,
- 7:10to make sure we were really listening and
- 7:13understanding
- 7:15before
- 7:16implementing change,
- 7:18which we knew it was gonna be big,
- 7:19but I I don't think we understood
- 7:22really how
- 7:24really huge that change was in so many
- 7:26areas.
- 7:28So I I think that would be the
- 7:29biggest
- 7:30biggest piece.
- 7:32That's helpful for understand to understand. Thank you
- 7:34for digging a little bit deeper there. Now
- 7:37looking ahead to 2026,
- 7:39what are some of the big priorities and
- 7:41headwinds that you're most focused on right now?
- 7:44I think there is probably
- 7:46three, you know, areas to answer that question.
- 7:49It's the continued growth and implementation of our
- 7:52central prior auth team.
- 7:54It is, such an impactful initiative that,
- 7:58you know, we need to keep on
- 8:00pressing forward and learning,
- 8:02and and implementing
- 8:04more,
- 8:05MSOT, which is multi step
- 8:07order transmittal,
- 8:09and
- 8:10learning how to nuance that in the workflows.
- 8:14The second is
- 8:16really massive impacts going on in the payer
- 8:20space
- 8:21with the,
- 8:22maximum fair price.
- 8:24The first 10 drugs,
- 8:26rolled out,
- 8:27in January, and we've got another slew of
- 8:30drugs for 2027
- 8:31to look forward to.
- 8:34That has huge,
- 8:36margin impacts,
- 8:38and then also biosimilars.
- 8:40It's a swirling space with, you know, certain
- 8:44payers,
- 8:45picking and choosing winners and losers in that
- 8:47biosimilar space, and it's how to navigate that
- 8:50from a procurement perspective
- 8:53and, making sure that we're not disrupting patient
- 8:56care,
- 8:57you know, as we try to figure out
- 9:00which payer is gonna pay for what,
- 9:02how we procure it,
- 9:04and understanding the the business implications.
- 9:08And then I think the third thing, which
- 9:10is always that elephant in the room is,
- 9:12three forty b changes.
- 9:15It seems like a weekly,
- 9:17there's some sort of curve ball, you know,
- 9:20in that three forty b space. And so
- 9:22keeping abreast of that and,
- 9:25you know, blocking and tackling, you know, as
- 9:27as that is such a a meaningful
- 9:30program
- 9:31for the entire health system,
- 9:34and for
- 9:35patients care.
- 9:37It's it's really important that we understand and
- 9:40keep abreast of those changes.
- 9:43Absolutely. And that's such a great point. I
- 9:45think all of the elements that you mentioned
- 9:47there are top of mind for so many
- 9:50hospitals and health systems right now, but especially
- 9:52thinking about
- 9:53that three forty b, and with all the
- 9:55changes. And, you know, I think,
- 9:58a lot of uncertainty attached to it, but
- 10:00at the same time, it sounds like, you
- 10:02know, being able to stay on top of
- 10:03the news and and, have the nimbleness to
- 10:06adjust is so important.
- 10:08Do you how do you see the team
- 10:09being able
- 10:10to sustainably,
- 10:13think about,
- 10:15continued development,
- 10:17with that program in such flux? How are
- 10:19you kind of guarding against whatever,
- 10:23impacts you need to absorb?
- 10:26You know what? I I think it's, it's
- 10:27really a a full team approach.
- 10:31We are very disciplined,
- 10:33around initiatives
- 10:35that we are,
- 10:37implementing, making sure that we are measuring results,
- 10:41and adjusting
- 10:43course
- 10:44should results not be
- 10:46meeting expectations
- 10:48or
- 10:49if there has been a change in
- 10:51the three forty b space,
- 10:54understanding what that change and implication might be
- 10:57and then looking
- 10:58for other initiatives that can
- 11:01counterbalance it.
- 11:03And and it really does take a a
- 11:05full team
- 11:07to be able to tackle the complexities of
- 11:10that. And so,
- 11:11we have the fortunate
- 11:14blessing of just incredible leaders that are all
- 11:18bought into a common vision about
- 11:22the the importance of what we do in
- 11:23our
- 11:24outpatient setting and,
- 11:26the importance of what we do to the
- 11:28entire organization.
- 11:29So,
- 11:30really engaged leaders,
- 11:33which really help us drive
- 11:35multiple initiatives and own those initiatives,
- 11:39and bring home the results,
- 11:42is is really, I think, our secret,
- 11:45and how we'll tackle, you know, twenty twenty
- 11:47six and 2027
- 11:49on the on the go forward.
- 11:51I think
- 11:52really also being open minded about adopting
- 11:56new tools, AI tools, automation tools, you know,
- 11:59things that,
- 12:01can help us
- 12:03not not only do the the analysis and
- 12:05the diagnosis, but also help us with efficiency,
- 12:09you know, and help us
- 12:10mitigate some of these,
- 12:13erosions.
- 12:15That's helpful to understand. And, you know, I
- 12:17appreciate the technology piece too, is evolving as
- 12:20quickly as, everything else, and so that that's
- 12:22great to hear.
- 12:24What do you think the hardest thing you'll
- 12:25have to do in the next year will
- 12:27be?
- 12:28I think it's, it's really balancing these eroding
- 12:32margins and these
- 12:34onslaughts, you know, into our business model
- 12:37with investments
- 12:39that we need in order to grow,
- 12:42and where we invest in order to grow.
- 12:45So
- 12:46I think that's gonna be
- 12:48a continuous
- 12:49tight rope we need to walk,
- 12:51and making sure that we're we're maintaining that
- 12:54operational
- 12:55discipline.
- 12:56I also think,
- 12:58one of the hardest things for the coming
- 13:00year is to continue
- 13:03to press and elevate
- 13:05the dialogue
- 13:06around
- 13:07the value that our outpatient retail pharmacists have
- 13:12in the continuum of care.
- 13:15In a health system,
- 13:17our retail pharmacies are truly the connective tissue
- 13:21across
- 13:22multiple clinical disciplines.
- 13:25We have the ability to access the entire
- 13:28EMR,
- 13:29and are able to really drive outcomes and
- 13:32results.
- 13:34But I I do believe it's a
- 13:37a perception
- 13:38that is still
- 13:40not fully understood
- 13:42and not fully appreciated. So,
- 13:44really socialization
- 13:46and advocacy
- 13:48for what the what the impact is of
- 13:52health system retail pharmacies in so many places.
- 13:55So
- 13:57That's helpful to understand. And I think especially
- 14:00looking at how I know many of those
- 14:02hospital retail pharmacies and and other,
- 14:05you know, new and and interesting,
- 14:08ways to provide access to care are certainly,
- 14:11making a a difference. And so it'll be
- 14:13interesting to see what kind of rises to
- 14:15the top as being, you know, those spaces
- 14:18that can make the biggest positive impact on
- 14:19the community.
- 14:21And to that point, I'm curious for your
- 14:23perspective,
- 14:24what
- 14:25do you how are you thinking about growth?
- 14:27What do you see as being some of
- 14:29the biggest opportunities for the next year or
- 14:31so?
- 14:32You know, growth for us, as we are
- 14:35a closed
- 14:36network pharmacy, really, our our mission is to
- 14:39serve as many UCSD
- 14:41health
- 14:42patients with pharmacy services as possible.
- 14:45Our best growth opportunities
- 14:48are continued
- 14:49partnership
- 14:50with the health system and health system leadership,
- 14:54and continuing
- 14:56to talk about the value that we provide
- 14:59not only for the patients,
- 15:02but also,
- 15:04you know, with with patients using our retail
- 15:07pharmacies, we have extremely high NPS scores,
- 15:12which helps the overall health system.
- 15:15And we have a a distinct impact on
- 15:18readmission rates.
- 15:20So, you know, again, beyond our own profit
- 15:24and loss statement that has a significant impact,
- 15:27on the metrics that matter for the health
- 15:30system.
- 15:31And then pharmacies
- 15:33are one of the most
- 15:35sticky businesses,
- 15:36or business models
- 15:38because we serve the patients so well, because
- 15:40we have such high scores, because we are
- 15:42able to do so much more than the
- 15:45average corner drugstore.
- 15:47Patients remain
- 15:49wanting to use UCSD health pharmacies,
- 15:52and that will then,
- 15:55you
- 15:55know, initiate them wanting to stay with the
- 15:58health system as their health system of choice.
- 16:01So I think we add a lot of
- 16:02value,
- 16:04to the overall growth of the system and
- 16:06the metrics,
- 16:07and I think it's a synergy and partnership
- 16:10with the health system leadership,
- 16:12that can help us in our in our
- 16:14own growth.
- 16:17I love that. Tracy, thank you so much
- 16:19for joining us on the podcast today. This
- 16:21has been such an informative and and fun
- 16:23conversation, and I look forward to seeing you
- 16:25as well at our chief pharmacy officers summit
- 16:27in April. I know you'll be speaking on
- 16:29a panel and really digging deeper into some
- 16:32of the themes we talked about here as
- 16:33well as, expanding the conversation and connecting with
- 16:36colleagues and and more. So I look forward
- 16:39to seeing you there.
- 16:41Well, Laura, thank you so much. It was
- 16:42a great conversation, and I hope you have
- 16:44a wonderful day.