Latest / Becker’s Healthcare Podcast / How Innovative Partnerships & New Pharmacy Models Can Help Health Systems Address Rising Drug Costs While Improving Patient Access and Affordability
Transcript
- 0:00- Hello, everyone. This is Erica Spicer Mason with
- 0:02- Becker's Healthcare. Thank you so much for tuning
- 0:05- in to the Becker's Healthcare podcast series.
- 0:08- Today, we're going to talk about how innovative
- 0:10- partnerships and new pharmacy models can help health
- 0:13- systems address rising drug costs while improving patient
- 0:17- access and affordability.
- 0:19- And joining me for this important conversation, we
- 0:21- have three leaders with us. The first is
- 0:23- Eric Hockins, chief growth officer at Lumicera Health
- 0:27- Services.
- 0:28- We also have Michael DePaz, vice president of
- 0:31- supply chain specialty pharmacy at Clarventa,
- 0:34- and we also have Jeanne Palskill, director of
- 0:36- manufacturer relations and contracting at Clarventa.
- 0:40- Eric, Michael, Jamie, welcome to the podcast. It's
- 0:42- so great to have the three of you
- 0:43- with us today.
- 0:44- Yeah. Thanks, Erica, and thanks, Beckers, for for
- 0:47- having us.
- 0:48- Thrilled to have all three of you, and
- 0:50- I wanted to just learn a little bit
- 0:53- more about each of you, maybe a little
- 0:55- bit about your role, your your background, or
- 0:57- how your work connects to health care just
- 0:58- to give our listeners some context.
- 1:01- Eric, do you wanna get us started with
- 1:02- some intros? Yeah. Absolutely. So, as chief growth
- 1:06- officer,
- 1:07- I I support all of our our health
- 1:09- system partners,
- 1:11- their growth, their objectives, and and how, they
- 1:15- expand their programs and capabilities and and how
- 1:18- we kinda bring in more health systems.
- 1:20- Our organization has been one that likes to
- 1:23- help health systems build the programs themselves, give
- 1:26- them the tools to to grow, and so
- 1:28- the that's what,
- 1:29- myself and and my team's support.
- 1:32- I've been with the organization
- 1:34- six years, and and prior to that, did
- 1:36- almost a decade,
- 1:38- of pharmacy,
- 1:40- leadership in health system running specialty pharmacy programs,
- 1:44- supporting outpatient and ambulatory programs. So that's kinda
- 1:47- my my background,
- 1:49- prior to coming over to Lumicera.
- 1:52- Fantastic.
- 1:53- Eric, thank you. And, Michael, how about you?
- 1:56- Yeah. Yeah. Thanks, Erica, for having us. So
- 1:58- I am our, VP of supply chain here
- 2:00- for Clarventa. So I have oversight really over
- 2:03- our Clarventa
- 2:04- organization,
- 2:05- and strategy. So,
- 2:07- my previous background, a little bit different than
- 2:09- Eric, a pharmacist. I am a pharmacist by
- 2:11- training like him, but came up in the
- 2:14- independent specialty pharmacy space and,
- 2:17- joined Lumicera
- 2:18- back in 2023
- 2:19- where I served as, our manager of of
- 2:21- industry relations and director of strategic partnerships,
- 2:24- manu doing all manufacture relationships and partnerships for
- 2:28- kind of Lumicera as an organization.
- 2:30- Had a short, I'd say, summer internship as
- 2:33- Jamie likes to call it, where I jumped
- 2:36- over to pharma for for a short bit
- 2:38- and have just recently rejoined kinda the, Lumicera
- 2:41- and Clarventa kinda enterprise and team,
- 2:44- over the last four weeks. So my my
- 2:46- role is ultimately
- 2:48- focused around the the growth of Claraventa and
- 2:50- supporting health system,
- 2:52- and other pharmacy partners, you know, from the
- 2:55- Claraventa standpoint. So happy to be here.
- 2:58- Awesome. Thank you, Michael. I'm excited to learn
- 3:00- more about Claraventa today.
- 3:02- Jamie, last but not least, tell us a
- 3:04- little bit about you.
- 3:06- Yeah. Thanks for, for having us.
- 3:09- So I've been with the the family of
- 3:11- of companies here for a little over ten
- 3:13- years.
- 3:15- Spent the first couple of years within
- 3:17- within the prior auth space at Navitus and
- 3:20- then about eight or so in the industry
- 3:22- relations and contracting
- 3:24- space,
- 3:25- working closely with manufacturers
- 3:27- on pricing, contracting,
- 3:29- you know, putting forth formulary strategy and recommendations
- 3:32- internally here at Navitus or at Navitus and
- 3:36- engaging with a lot of downstream clients and
- 3:38- and some sales focus as well.
- 3:41- Kind of at the start of this year,
- 3:43- really,
- 3:44- started to dive more into the Claraventa,
- 3:47- landscape,
- 3:48- which has quickly heated
- 3:51- up over the last couple of months,
- 3:53- and
- 3:54- excited to
- 3:55- kinda to work with Michael and others on
- 3:58- on bringing this new
- 4:00- this new company to market, honestly, to help,
- 4:03- disrupt the industry from a a pricing strategy
- 4:05- perspective.
- 4:06- So, again, thanks for thanks for having us,
- 4:08- and look forward to the discussion here.
- 4:10- Yeah. Jamie, thank you so much. And, likewise,
- 4:13- looking forward to learning some more from the
- 4:16- three of you. And before we get into
- 4:18- Claraventa, I wanted to just kind of first
- 4:20- set the scene for our audience and the
- 4:22- landscape that that you and your partners are
- 4:25- working within today.
- 4:27- Eric, I know that rising prescription drug costs
- 4:29- are top of mind for pharmacy leaders and
- 4:31- their c suite counterparts. It's certainly not just
- 4:33- limited to pharmacy leaders anymore.
- 4:36- How are you seeing this trend shape health
- 4:38- systems priorities
- 4:39- at this moment, especially around access and affordability?
- 4:43- Yeah. I mean, drug costs continue to rise
- 4:46- at a at a rate higher than than
- 4:49- most,
- 4:50- of the consumer,
- 4:52- index as well as just rising cost of
- 4:54- expenses, and that's that's been a major major
- 4:57- pain point for our our health system
- 4:59- partners.
- 5:00- What we're really,
- 5:02- grappling with and and helping health systems understand
- 5:05- is is more so that that gross to
- 5:08- net looking at
- 5:10- the the list price that continues to go
- 5:12- up and what actually happens between
- 5:15- that that list price and what health systems,
- 5:18- can procure it at and then what payers
- 5:21- and or patients ultimately pay for it.
- 5:24- And so that's been something because
- 5:26- we have,
- 5:28- tremendous
- 5:29- expertise on the payer side, on the pharmacy
- 5:32- side, and the manufacturer side. I mean, you
- 5:34- look at the the panel right here, you
- 5:36- got someone health system background,
- 5:38- pharma background, and and payer background, and and
- 5:41- somehow we all get along when we, when
- 5:43- we join each other for a cup of
- 5:45- coffee. But, it it's something that we've brought
- 5:48- in all of the the different stakeholders to
- 5:51- really help health system partners understand
- 5:54- those dynamics and then actually create some solutions,
- 5:57- when it comes to Clervanta, which we're excited
- 6:00- to talk to you about today, as to
- 6:02- how we can solve some of those those
- 6:04- those rising costs and and understand all the
- 6:07- different levers and all the different, you know,
- 6:09- middlemen and organizations
- 6:11- that that, touch touch that prescription, touch that
- 6:15- patient, touch the pharmacoeconomics
- 6:18- between that list price and the,
- 6:21- actual procurement price and what the reimbursement,
- 6:25- payment is.
- 6:27- Mhmm.
- 6:28- Eric, thank you so much. I appreciate you
- 6:29- setting that scene for us and sharing a
- 6:31- bit about what you're seeing on the ground
- 6:34- amongst your partners.
- 6:35- And, Mike, I wanted to turn it to
- 6:37- you next and and learn a little bit
- 6:39- more about where and how Clarventa comes in
- 6:41- here, you know, against this backdrop that that
- 6:44- Eric outlined.
- 6:45- And for listeners who are hearing about Clarventa
- 6:47- for the first time, can you share a
- 6:49- little bit about what it is and the
- 6:50- problem that you're setting out to solve?
- 6:53- Yeah. Yeah. Absolutely. Yeah. So Clorventa is ultimately
- 6:56- created as a procurement GPO.
- 6:59- And as Eric likes to describe it, we
- 7:00- are kind of the GPO to end all
- 7:02- GPOs.
- 7:03- So as Eric talks about kind of that
- 7:05- gross to net shift and and what we
- 7:08- see kind of occurring
- 7:10- as you get down to the net price
- 7:12- and the value that is eaten up in
- 7:14- the middle,
- 7:15- that's where we ultimately
- 7:17- wanted to
- 7:18- create some additional transparency,
- 7:20- efficiency, and ultimately sustainability
- 7:23- through kind of Clarventa. So taking a look
- 7:26- at all of that value that's eaten up
- 7:27- in the middle and finding ways to be
- 7:30- able to actually pass it through
- 7:32- to those health system partners, pass it through
- 7:35- to other plan sponsors,
- 7:37- as well as even patients through kind of
- 7:39- net pricing opportunities
- 7:41- that will decrease the overall health care kind
- 7:44- of expenses that we see and ultimately
- 7:47- drive those prices,
- 7:49- down as well. Because we do see,
- 7:52- when we we add all of that middle
- 7:54- value from the the middlemen that are currently
- 7:57- working,
- 7:58- within the supply chain, that's where we see
- 8:00- kind of those price increases
- 8:02- actually driving that's those middlemen are driving kind
- 8:05- of those additional price increases,
- 8:07- throughout the supply chain. So that's where Clarventa
- 8:10- is ultimately stepping into,
- 8:12- kind of revolutionize, I'd say, the supply chain
- 8:15- and find those opportunities where we can continue
- 8:17- to pass value through to those partners who
- 8:20- are actually doing the work and supporting our
- 8:22- patients.
- 8:23- It's a great overview, Mike. Thank you so
- 8:25- much.
- 8:26- And, you know, as you were speaking through
- 8:28- your answer, I I was thinking about how
- 8:30- each of you represents different areas of this
- 8:33- space, you know, whether that's growth, the supply
- 8:36- chain as you were just speaking to, Mike,
- 8:38- manufacturer relations. I know that's more in Jamie's
- 8:41- wheelhouse here.
- 8:43- What will partnership from all of those points
- 8:45- of view, what will that look like, when
- 8:48- a health system is partnering with Claraventa?
- 8:50- You know, in practice, I'd I'd love to
- 8:52- get a bit of a on the ground
- 8:54- sense of of what this will look like.
- 8:57- Yeah. I can start high level from the
- 8:58- growth aspect.
- 9:00- You know, GPOs aren't aren't new. They've been
- 9:02- in our industry for for a while. So,
- 9:05- the the
- 9:07- luxury or or perk with that is that
- 9:09- a lot of those
- 9:11- capabilities to load contract pricing through a GPO,
- 9:15- are pretty well established. And so we are
- 9:17- really looking to
- 9:19- help health systems load those Claraventa
- 9:22- contracts into,
- 9:24- their existing,
- 9:25- you know, supply chain relationships.
- 9:28- But it's looking at it in a, a
- 9:30- more innovative way, taking their relationships with,
- 9:34- other employer groups, with health plans, with their
- 9:36- own benefits
- 9:37- team, and finding ways to,
- 9:40- partner a little bit closer based on our
- 9:42- relationships with with manufacturers
- 9:45- and and and payers in the ecosystem.
- 9:48- Margin compression is is not going away. That
- 9:51- is a major major pain point, and this
- 9:54- is really kinda helping
- 9:55- solve that by loading some of these Plurventa
- 9:58- contracts
- 9:59- in for our our health system partners. We
- 10:02- are we are an organization that likes to
- 10:04- help other organizations
- 10:05- grow their own programs, and we feel like
- 10:07- that's kind of a big key to to
- 10:10- what Clervent is all about. Mhmm.
- 10:13- And, Mike, Jamie, what would you have?
- 10:15- Yeah. Absolutely. Eric Eric really knocked it out
- 10:17- of the park there, as it relates to
- 10:19- how how we're gonna continue to work with
- 10:21- health systems from a Clarventa standpoint.
- 10:24- And I think that that margin compression that
- 10:27- he he had talked about is is very
- 10:29- important.
- 10:30- I think part of our goal at Clarventa
- 10:32- is ultimately
- 10:33- creating pharmacy networks where we can offer that
- 10:36- net price at a cost plus type of
- 10:39- manner as well, which is kind of the
- 10:40- tried and true model of Lumicera
- 10:43- and where we've been living in in kind
- 10:44- of the specialty pharmacy space as well. So
- 10:47- I think, you know, being able to provide
- 10:49- our health system partners
- 10:51- and act as a referral source for them
- 10:53- to help them,
- 10:54- within their kind of continued growth,
- 10:57- as an organization as well. And then in
- 10:59- addition, creating that
- 11:01- transparent and clear kind of pricing,
- 11:04- and ensuring that value is getting passed through
- 11:06- to them versus eaten up in the middle,
- 11:09- I think are gonna be the the important
- 11:10- components from a supply chain standpoint.
- 11:13- Yeah. Mike, great great perspective. And, Jamie, what
- 11:16- would you add from manufacturing?
- 11:18- Yeah. I agree with everything both Eric and
- 11:21- Michael have said there. You know, I think
- 11:23- in a lot of ways,
- 11:25- the the ongoing
- 11:27- rise of of drug costs,
- 11:30- really are created for
- 11:32- a number of various reasons.
- 11:34- Obviously, there's some of the ongoing trials and,
- 11:37- you know, expenses from the pharma side to
- 11:40- continue research on on products. But others are
- 11:43- really due to the extraction of dollars from
- 11:46- various players within within the system and other
- 11:50- programs that create,
- 11:51- you know, risk for lost dollars,
- 11:54- to manufacturers
- 11:55- via other double dipping or
- 11:58- discounting scenarios
- 12:00- kind of in, like, the three forty b
- 12:02- space of sorts. Right? So,
- 12:04- really partnering with manufacturers
- 12:06- here
- 12:07- helps provide this transparent pricing mechanism,
- 12:11- mitigates those risks of dollars being extracted for
- 12:15- various reasons
- 12:17- from the supply chain here. It does also
- 12:20- create other avenues for
- 12:23- the the growth or expansion of value based
- 12:26- contracting or discounting,
- 12:29- providing other enhanced services to patients,
- 12:32- providing additional
- 12:34- usable
- 12:35- data back to manufacturers.
- 12:38- And really, when you think across the enterprise
- 12:41- of of companies here,
- 12:43- really helping drive to
- 12:44- overall lowest net cost, meaning those that, you
- 12:48- know, partner and engage here will be the
- 12:50- benefactors of
- 12:52- access
- 12:53- from formulary coverage from downstream entities, so
- 12:57- which can drive more utilization and volume
- 13:00- to their products,
- 13:02- increasing their access to patients.
- 13:05- In in a lot of ways,
- 13:07- manufacturers have have started to sides sidestep some
- 13:11- of the current,
- 13:12- you know, larger PBM GPO landscapes
- 13:16- with some of the direct to consumer, direct
- 13:17- to employer,
- 13:19- programs that have come about in the last,
- 13:21- you know, twelve to twenty four months or
- 13:23- so. This is really another function of that
- 13:26- of sorts, but within a funded benefit. So
- 13:28- providing that same value back to manufacturers,
- 13:31- avoiding those
- 13:32- dollars being extracted, those those risk
- 13:35- mitigation strategies of various programs,
- 13:38- But delivering this the low net cost,
- 13:41- on the front end basis at the point
- 13:43- of sale through
- 13:45- a patient's, you know, sponsored benefit
- 13:49- from a pharmacy benefit coverage standpoint.
- 13:53- Yeah. Jamie, thank you. And I I know
- 13:55- what we've touched on a lot here is
- 13:57- this bigger idea of cost savings.
- 14:00- But I I wanna go a little bit
- 14:02- deeper as well. You know, beyond cost savings,
- 14:05- Jamie, what impact do you think Claraventa will
- 14:08- have on patient
- 14:09- care as well as the industry more broadly?
- 14:11- You know, whether that's
- 14:12- access, affordability,
- 14:15- other outcomes that you're seeing. And as you
- 14:17- look ahead in those next few years, what
- 14:19- excites you most about where the work is
- 14:20- headed?
- 14:22- Yeah. I think the the next five years
- 14:23- have a the potential for a lot
- 14:26- of a lot of change within this space
- 14:28- for a number of reasons,
- 14:30- legislative
- 14:31- efforts,
- 14:32- other, you know, government program efforts like IRA,
- 14:36- MFP components.
- 14:38- But I think
- 14:39- all of those things considered,
- 14:42- this sort of strategy
- 14:44- sets the stage for a lot of those
- 14:46- those,
- 14:48- events to take place.
- 14:49- And, really,
- 14:51- when we're really concerned,
- 14:53- you know, wholeheartedly about taking care of patients,
- 14:56- taking care of those members that are,
- 14:58- accessing
- 14:59- products through pharmacy partners like Lumicera,
- 15:03- this really provides the opportunity for them to
- 15:06- be the benefactor and the plan sponsor as
- 15:09- well of the net cost of the product
- 15:11- at the point of sale. So this this
- 15:14- could lead to the, you know, the stage
- 15:16- for members being more adherent and staying on
- 15:18- therapy because they're impacted less from an out
- 15:21- of pocket cost expense when they're when they're
- 15:24- refilling and picking up those,
- 15:25- prescriptions.
- 15:27- And from the plan plan sponsor perspective, they're
- 15:30- paying less upfront. They're being able to offer
- 15:33- greater, you know, more robust benefits to their,
- 15:37- members or to their employees, you know, depending
- 15:39- on the plan type.
- 15:41- Because they're seeing that value on the front
- 15:43- end, there this really mitigates the risk of
- 15:46- the back end rebate scrubbing that can occur
- 15:49- because all of those pieces are being done
- 15:51- before the claim
- 15:52- is dispensed, before the patient picks up that
- 15:54- prescription. So you have more,
- 15:57- you have less volatility
- 15:58- in the ebbs and flows of the current
- 16:00- rebate
- 16:01- you know, submission game and scrubbing game and
- 16:04- really can have more price predictability
- 16:07- because you're seeing that low net cost
- 16:10- when the patient is being dispensed that medication.
- 16:13- Yeah. Jamie, appreciate you touching on some of
- 16:15- those other effects that are possible such as
- 16:18- medication adherence as you were speaking to.
- 16:20- It's an exciting
- 16:22- future ahead. And and, again, I just wanna
- 16:24- thank the three of you for sharing a
- 16:26- bit more about what you're seeing amongst your
- 16:28- partners, what's going on at Claraventa.
- 16:30- As we close here, is there anything that
- 16:32- we haven't touched on or maybe any final
- 16:34- thoughts that you'd like to share with listeners?
- 16:37- Yeah. Thank thanks for for having us today.
- 16:40- I think we're, you know, scratching the the
- 16:42- surface of of, you you know, what
- 16:45- Clarventa can do, and and we do feel
- 16:47- it is helping change the industry and and
- 16:50- change the drug channel and supply chain for
- 16:53- for the better to do it more transparently
- 16:55- just as many of our other organizations
- 16:58- in our family have have done the last
- 17:00- twenty years in helping health systems grow and
- 17:03- and helping them take care of their their
- 17:05- patient. That's ultimately
- 17:06- what what we feel is best is is
- 17:09- giving
- 17:10- the health systems the tools to to be
- 17:12- able to take care of that patient and
- 17:14- do it in a a sustainable manner. You
- 17:16- know, Clarventa is one major
- 17:18- major tool in our toolbox for for health
- 17:21- systems.
- 17:22- Lumicera has has kind of a whole host
- 17:24- of of other ways that we help health
- 17:27- systems, and and we're exciting for excited for
- 17:30- this to to be added on to that
- 17:32- breadth of
- 17:34- of services and solutions we can can do
- 17:36- to to help health system organizations grow.
- 17:40- Well said. Thanks, Eric. Mike, Jamie, any final
- 17:43- thoughts from you?
- 17:45- I think we're we're at this
- 17:47- very interesting time in a in a very
- 17:50- large market.
- 17:51- Legislative efforts have maybe forced the envelope to,
- 17:55- you know, make transparency
- 17:57- be more of a table stakes at this
- 18:00- point.
- 18:01- But really is the core
- 18:03- the foundational core of how our enterprise, like,
- 18:06- and the companies within have operated since since
- 18:09- the get go. So we're looking forward to
- 18:12- and excited to bring forth another strategy that
- 18:14- really builds on those beliefs,
- 18:17- isn't,
- 18:18- you know, is seeking to partner with with
- 18:21- everybody with every stakeholder within the space to
- 18:23- deliver,
- 18:25- value back and contain health care costs
- 18:28- to really benefit
- 18:30- everybody involved within the system here, notably, you
- 18:33- know, patients that are that are needing and
- 18:35- taking medications that are,
- 18:38- being dispensed.
- 18:40- Yeah. Absolutely. And it's, you know, I think,
- 18:42- Erica, from our perspective, it's a it's a
- 18:44- very exciting time for the health care industry.
- 18:47- As Jamie has mentioned and Eric has mentioned,
- 18:50- we continue to see
- 18:51- this shift. And I think at Clarventa and
- 18:54- Lumicera,
- 18:55- these are things that Lumicera and our sister
- 18:57- entities have been
- 18:58- advocating for and have been working towards,
- 19:02- for the last twenty plus years. So it's
- 19:05- very exciting to to see this time,
- 19:07- come in the health care industry, and I
- 19:09- think it's it's only going to,
- 19:12- further support kind of patients
- 19:14- and increase access and affordability,
- 19:16- for our patients as as we begin to
- 19:18- shift them over to,
- 19:20- the Claraventa kind of net price model
- 19:23- and and hopefully,
- 19:24- ultimately lead to additional changes within the health
- 19:27- care industry that are gonna benefit patients.
- 19:30- Yeah. Fantastic.
- 19:31- Mike, thanks for rounding us out with those
- 19:34- closing thoughts, and I just wanna thank the
- 19:35- three of you again for making time for
- 19:37- this conversation today.
- 19:39- I look forward to seeing
- 19:41- how everything evolves at Claraventa, and, hopefully, we'll
- 19:44- have the three of you back on for
- 19:45- another episode,
- 19:47- in the next few months or a year
- 19:48- out and see where things are. But,
- 19:50- again, thank you for for your time today.
- 19:53- Yeah. Thanks, Erica. Thank you. Yeah. Thank you.
- 19:57- And we'd also like to thank our podcast
- 19:59- sponsor for today, Lumicera Health Services and Claraventa.
- 20:03- Listeners, be sure to tune in to more
- 20:05- podcasts from Becker's by visiting our podcast page
- 20:08- at beckershospitalreview.com.