36C26118Q0067-003.doc

WALL TO WALL INVENTORY INSTRUCTIONS 2016

1. Inventory turns = Purchases (McKesson&Direct) for previous 12 months

Inventory on Hand

2. “Inventory on Hand” is all the drugs and supplies that are stored in the pharmacy. Drugs and supplies that have been placed in automated equipment on the units and/or CBOC’s is NOT counted. Ward stock is NOT counted. You only count inventory stored at a CBOC if you have a pharmacy there (one with a separate McKesson account number) with a pharmacist manning it with deliveries directly to that site.

3. All products purchased from McKesson must be inventoried. Including supplies.

4. Direct buy supplies that are given directly to the patient (catheters, diapers, syringes, etc.) ARE counted. Supplies used in the pharmacy (bottles, labels, syringes used to make IV bags, etc.) are NOT counted.

5. Direct buy products (drugs and supplies) are only counted if the value of the drug on the shelf is greater than $100 (so one bottle of drug that costs $50 from specialty is not counted).

6. Drugs stored in automated equipment INSIDE the pharmacy can be estimated (Script-Pro, Talyst, etc.) to the nearest 10th. It is important not to overestimate this stock because the lower the denominator the higher the turn rate.

7. Unit dose medications inside the pharmacy must be counted.

8. Purchases are calculated by adding all McKesson invoices AND all Direct buy (specialty drugs) invoices. It is important to capture all the purchases you have since the higher the numerator the higher the turn rate.

9. Randomly verify the accuracy of the inventory counts. Do some in real time (at the same time as the person counting) and then review the paperwork for obvious errors (unit miss-calculation). The more verifying you do, the more accurate the inventory counts will be.

Ex.

Morphine Sulfate 2x500 ml. may be in the narcotic vault inventory as

“1000 ml” to make dispensing easier, but the item is purchased as 1 bottle (each), not 500 ml. If “1000” is added to the inventory, it will read as 1000 bottles of morphine in stock which could throw off your turn calculation.

Also, check for vials of antibiotic that may be purchased as 1 x 10 vials or frozen or pre-made IVs that are purchased by the box or case as these items may be stored in bins as single vials and prone to the same type of counting error.

TIPS FOR BETTER INVENTORY TURNS

1. Return all inventories waiting for credit and/or destruction prior to the actual count.

2. Work down inventory as much as possible without jeopardizing patient care prior to the inventory

3. It is generally believed that local procurement staff does a more accurate job of inventorying than do contracted firms. But regardless, you must verify the counts to some degree.