We live in a world where everything is done digitally, well…almost everything. While other industries continue to digitize their inventory management processes, many independent pharmacies are still conducting their controlled substance record keeping with old-fashioned manual logbooks. This is largely because some owners think that digital record keeping is too expensive and complicated, or they struggle to see the value that it provides. Even though manual data entry has been used for many years, industry trends have limited its effectiveness, making it essential for pharmacies to adapt and embrace modern solutions.
How Independent Pharmacies Can Overcome Challenges with Digital Record Keeping
For independent pharmacies, complying with the Controlled Substance Act (CSA) continues to be a challenge and is a big reason why pharmacies are integrating digital record keeping into their processes. The CSA requires independent pharmacies to comply with terms relating to registration, record keeping, security, dispensing, and the proper disposal of substances. Additionally, the CSA is a living document that continues to change over time, making it difficult to keep up with the latest regulations.
By transitioning to digital record keeping, independent pharmacies can comply with CSA requirements with improved accuracy, structured organization, better time management, stronger security, and insightful data analytics. The rest of this blog will explore five common problems independent pharmacies face and how digital record keeping can solve them.
Problem 1: Inaccurate Record Keeping
Independent pharmacies often fail to comply with the CSA due to recording errors. These errors not only lead to compliance issues, but can also negatively impact business by causing delays, tarnishing reputations, and putting customers at risk.
Example:
A recent example is the Taylor Drugstore case in Pineville, KY. In this case, Taylor Drugstore was fined over $94,000 in civil penalties after a Drug Enforcement Agency (DEA) investigation concluded that the pharmacy failed to maintain accurate records of its controlled substance inventories. The audit revealed that Taylor Drugstore’s records did not account for the dispensation or disposal of over 4,500 dosage units of highly addictive substances, endangering public safety. This case is one of many in the United States each year that could be easily avoided with proper inventory management.
Solution: Improve Accuracy by Eliminating Human Error
The most effective way to accurately manage controlled substance inventories is through digital record keeping. This approach significantly reduces the risk of human error by automating data entry and alerting pharmacists to potential issues. As a result, errors can be quickly reconciled before any harm occurs. In the Taylor Drugstore case, a properly integrated system focused on digital record keeping could have detected controlled substance discrepancies early, enabling the pharmacy to resolve the issue promptly and avoid fines and public safety risks. By adopting these systems and integrating them into their processes, independent pharmacies can prevent incidents like the Taylor Drugstore case while also benefiting from additional advantages discussed below.
Problem 2: Disorganized Record-Keeping
The importance of organization for independent pharmacies is often overlooked until it is too late. Government officials can conduct inventory inspections at any time, and if the pharmacies cannot readily access and present the requested information clearly and precisely, penalties may be assessed. Additionally, a lack of structured organization can lead to a silo effect, where poor communication and transparency within a business result in dysfunctional operations, inventory discrepancies, and reporting errors.
Example:
An example is the Illinois Pharmacy case, where a disorganized manual logbook led to false accusations by the diversion investigator. In this situation, the pharmacy was accused of theft/diversion after inspectors failed to account for unopened inventory. Due to siloed areas within the pharmacy, it took over 120 hours to gather the data needed to prove that no discrepancies, theft, or diversion had occurred.
Solution: Structured Organization
Integrating digital record keeping into daily operations allows independent pharmacies to easily organize and track controlled substance inventory, preventing operational silos. In response to the false accusations, the Illinois-based pharmacy adopted a new digital record-keeping system into their workflow. Today, this decision helps the owner and staff manage inventory more effectively and feel better prepared for future inspections.
Problem 3: Inefficient Time Management Practices:
Like most professionals, independent pharmacy owners are always looking for ways to better manage their time. One of the key factors that can make or break how well a pharmacy manages its time is their record keeping method. Pharmacies that are still utilizing manual record keeping systems tend to spend significantly more time on data entry and discrepancy reconciliation.
Example:
A great example to highlight the impact of digital record keeping on time management is the Brooklyn Pharmacy testimony. In this case, Brooklyn Pharmacy in Portland, OR found itself overwhelmed by the sheer volume of data and complexities involved with controlled substances. This forced its employees to spend most of their time figuring out how to correctly write down and organize data into a logbook.
Solution: Automate Record-Keeping Processes
After Brooklyn Pharmacy integrated digital record keeping into their workflow, they reported saving up to 25 hours per month on filling controlled substance prescriptions. By improving organization and efficiency through the automation of processes previously done manually, digital record keeping can give independent pharmacies more time to focus on patient care.
Problem 4: Lack of Security
Arguably, the most important objective for pharmacy owners is the protection of controlled substances. When these substances go missing, pharmacies without proper record-keeping can face time-consuming investigations and regulatory scrutiny, putting their business at risk. Another key problem with manual systems is that data can be easily altered or forged, compromising the pharmacy’s integrity. This vulnerability is often due to the absence of basic security features such as user credentials and barcode scanners.
Example:
As seen in the Taylor Drugstore case, it is very likely that the lack of security within their system played a key role in explaining why the pharmacy was unaware of any suspected drug abuse or diversion. Ultimately, pharmacy owners who do not effectively secure their inventory records may face audits, fines, and potentially the loss of their license
Solution: Increase Operational Transparency
While implementing proper security methods may seem daunting, digital record keeping simplifies the process. Integrating these systems into existing pharmacy software enhance the protection of vital records while providing transparency to pharmacy owners and staff regarding any suspicious activity.
In the Taylor Drugstore case, a digital record-keeping system with enhanced security features would have made it easier to recognize and prevent suspicious activity. Overall, digital record keeping makes it feasible for independent pharmacies to maintain a safe environment for both patients and staff.
Problem 5: Lack of Insightful Data Analytics
The last benefit discussed is the ability to analyze and manage big data. In today’s environment, firms rely on data-driven decisions to improve all areas of their business. According to Keith Loria’s article, “How Has the Evolution of Data Changed Independent Pharmacy,” many independent pharmacies have started taking a more analytical approach since the COVID-19 pandemic. Loria explains that pharmacy owners are expanding their analytical capabilities to unlock key trends and insights, helping them better understand the communities they serve. Unfortunately, relying on manual record keeping systems makes it nearly impossible to analyze records for insight.
Solution: Simplify Analytics with Effective Data Management
The main driver behind a robust analytical approach is a properly integrated digital record-keeping system. By storing data digitally, pharmacies can easily export and visualize inventory trends in ways that are not possible with manual logbooks. The better a pharmacy understands its inventory and environment, the more effectively it can tailor services to meet customer needs. Additionally, pharmacies with strong analytical capabilities are more likely to recognize and react to potential problems.
Take the First Step to Digital CS Record Keeping with C2 Keep:
The future success of independent pharmacies relies on digital record keeping. Although it may seem like a daunting task, transforming your pharmacy is much more feasible than you might think.
At C2 Keep, we offer a fully integrated digital CSA compliance and inventory management solution that seamlessly integrates with your pharmacy’s prescription filling software and wholesaler. With plenty of resources and exceptional customer service, our team will have your pharmacy benefiting from improved accuracy, structured organization, better time management, stronger security, and insightful data analytics.
To learn more about C2 Keep and why over 1,500 pharmacists and staff rely on our solution everyday, click HERE to schedule your free demo today!
