Strategies for Success
Offsetting health system pharmacy labor and resource constraints
Market Overview and Highlights
The collective healthcare sector is experiencing significant labor shortages – with multiple surveys reflecting labor shortages as a top operational and financial concern for health system leaders – and the pharmacy is being hit particularly hard. The U.S. Bureau of Labor Statistics (BLS) estimates that there are 14,200 openings for pharmacists each year, and the Health Resources and Services Administration (HRSA) projects shortages of up to 5,000 pharmacists over the next 15 years.1,2 Pharmacy technician roles are some of the most difficult to fill, and research appears to show the problem may only worsen. According to BLS, growth is dramatically slower (7% annually) in pharmacy technicians than other professions, with up to 47,000 openings each year.3 In 2021, pharmacy technicians experienced a 20% turnover rate.3 Taking into account the 20% turnover rate with just a 7% growth rate, the deficit will continue to grow.
Trends in training and education also support the possibility of ongoing pharmacy labor shortages, as the American Association of Colleges of Pharmacy (AACP) notes a 10% reduction in pharmacy student graduation rates and a worrisome 60% decline in pharmacy school applicants over the last 10 years which is thought to be fueled, in part, by would-be applicants’ perception of the profession as having a high risk for burnout.3,4 While it remains to be seen whether the trend will continue, high turnover
rates and burnout are a
reality, especially among
pharmacists themselves,
where burnout rates soared
from 40-50% pre-pandemic
to 90-100% thereafter.4
Unfortunately, high turnover rates and burnout are a reality, especially among pharmacists themselves, where burnout rates soared from
40-50
%
pre-pandemic
to
90-100
%
thereafter.4
Spotlight on Sub-Trends
Shift from crisis to mid-to-long-term challenge
Despite employment and demand for patient care services having largely returned to pre-pandemic levels and the use of contract labor – as well as contract labor rates – declining, labor shortages remain a top concern for health system CEOs, who now view the issue as a long-term challenge vs. an acute crisis to solve for.
Integration of advanced technologies
Automation, digitization, and artificial intelligence (AI) are becoming essential rather than optional in addressing labor shortages. Automated dispensing cabinets (ADCs), robotic dispensing, consolidated service centers (CSCs) and AI-driven inventory management, auditing, and reporting are relieving some of the routine burden on staff, allowing pharmacists to focus on more critical, patient-centered tasks.
Expansion of pharmacist roles and settings
Pharmacists are increasingly taking on roles beyond traditional dispensing – engaging in chronic care management, immunizations, and embedded positions within physician practices. This expansion, while promising for enhanced service delivery, also stretches the existing workforce thin, further exacerbating labor demands.
Why It Matters to Health Systems
Labor shortages in pharmacy services significantly impact health systems’ ability to deliver effective patient care. Shortages can lead to delays in medication dispensing, increased errors, and reduced patient interaction while also contributing to burnout and turnover that compounds labor constraints. From a financial perspective, health systems could lose valuable dollars due to reliance on contract labor, continuous training and onboarding as a result of high turnover, decreased revenue from clinical services, and various operational demands directly related to short-staffed pharmacies.
What to Watch For
It’s widely accepted that labor shortages will continue to plague the pharmacy profession for the foreseeable future, though potential solutions are emerging and evolving rapidly. Health systems should closely monitor proposed changes in state and federal laws that may alter reimbursement models based on the broader role of the modern pharmacy professional. The development and availability of technologies and automated solutions that may help streamline pharmacy operations, speed up decision-making, and reduce labor demands should also be followed.5,6
Strategies for Success
With available labor resources dwindling and a shrinking pipeline, health systems must find creative solutions for better using the personnel they have. This may mean redistributing responsibilities, automating tasks with technology, or adopting remote delivery models for certain services. In parallel, health systems can contribute to a more long-term solution that rebuilds the pool of pharmacy professionals through innovative recruiting, staffing, and educational methods. Potential strategies for creating a more efficient and sustainable pharmacy workforce can be divided into two key areas:
Operational:
Redesign care delivery and staffing models to incorporate telepharmacy and outsourcing for improved resource allocation
Employ automation and robotics to reduce lower-level repetitive tasks
Use AI and ML to streamline complex decision-making processes
Standardize operations and
formularies to create uniform
procedures across the enterprise
Utilize analytics and indexing to leverage data for operational insights and improvements
Migrate non-core activities such as retail, recurring, and homecare dispensing to a central fill operation
Administrative:
Invest in long-term workforce development plans and programs
Modify recruiting and retainment strategies to include a focus on improving well-being and reducing burnout and turnover
Engage pharmacy staff with increased training, specialization, and development of career ladders
Explore opportunities that may allow some pharmacy professionals to work remotely, part-time, or in hybrid settings
Consider partnering with universities or training programs to fund scholarships in return for a defined employment commitment
How McKesson’s P&AS Team Can Help
Many of McKesson’s Professional & Advisory Services (P&AS) experts began their
careers as health system pharmacists, and solving for labor shortages – both acutely,
through efficiency strategies and solutions, and more broadly with efforts to build and
develop the workforce long term – is equal parts personal and professional priority.
For health systems feeling the strain of pharmacy labor shortages, our P&AS
team can discuss how our advanced offerings, including central fill options, CSCs,
Contract Concierge, and others* can help alleviate your most pressing operational
and administrative burdens so you can achieve more – even with less.
For more information about how our P&AS experts can help you combat labor and resource constraints to achieve more for the business of pharmacy, contact us directly at pas@mckesson.com.
1 https://www.bls.gov/ooh/healthcare/pharmacists.htm
2 https://bhw.hrsa.gov/data-research/projecting-health-workforce-supply-demand
3 https://www.bls.gov/ooh/healthcare/pharmacy-technicians.htm#tab-6
https://www.pharmacypracticenews.com/Opinion/Article/06-24/Addressing-the-Decline-in-Graduating-Pharmacists-The-Role-of-Artificial-
Intelligence-and-Automation/74011#:~:text=Recent%20data%20indicate%20a%20notable,60%25%20within%20the%20last%20decade.
4 https://www.drugtopics.com/view/student-staffing-shortages-continue-to-impact-pharmacy-profession?utm_source=www.drugtopics.com&utm_medium=relatedContent
5 https://bringoz.com/retail-pharmacy-trends-that-will-impact-2024/#:~:text=The%20retail%20pharmacy%20industry%20 in%202024%20is%20poised%20for%20innovation,and%20technology-driven%20healthcare%20solutions
6 https://www.pharmexec.com/view/four-for-2024-predictions-for-the-future-of-pharmacy-technology
thereafter.4
%
90-100
to
pre-pandemic
%
40-50
Unfortunately, high turnover rates and burnout are a reality, especially among pharmacists themselves, where burnout rates soared from
Market Overview and Highlights
The collective healthcare sector is experiencing significant labor shortages – with multiple surveys reflecting labor shortages as a top operational and financial concern for health system leaders – and the pharmacy is being hit particularly hard. The U.S. Bureau of Labor Statistics (BLS) estimates that there are 14,200 openings for pharmacists each year, and the Health Resources and Services Administration (HRSA) projects shortages of up to 5,000 pharmacists over the next 15 years.1,2 Pharmacy technician roles are some of the most difficult to fill, and research appears to show the problem may only worsen. According to BLS, growth is dramatically slower (7% annually) in pharmacy technicians than other professions, with up to 47,000 openings each year.3 In 2021, pharmacy technicians experienced a 20% turnover rate.3 Taking into account the 20% turnover rate with just a 7% growth rate, the deficit will continue to grow.
Trends in training and education also support the possibility of ongoing pharmacy labor shortages, as the American Association of Colleges of Pharmacy (AACP) notes a 10% reduction in pharmacy student graduation rates and a worrisome 60% decline in pharmacy school applicants over the last 10 years which is thought to be fueled, in part, by would-be applicants’ perception of the profession as having a high risk for burnout.3,4 While it remains to be seen whether the trend will continue, high turnover
rates and burnout are a
reality, especially among
pharmacists themselves,
where burnout rates soared
from 40-50% pre-pandemic
to 90-100% thereafter.4
Expansion of pharmacist roles and settings
Pharmacists are increasingly taking on roles beyond traditional dispensing – engaging in chronic care management, immunizations, and embedded positions within physician practices. This expansion, while promising for enhanced service delivery, also stretches the existing workforce thin, further exacerbating labor demands.
Integration of advanced technologies
Automation, digitization, and artificial intelligence (AI) are becoming essential rather than optional in addressing labor shortages. Automated dispensing cabinets (ADCs), robotic dispensing, consolidated service centers (CSCs) and AI-driven inventory management, auditing, and reporting are relieving some of the routine burden on staff, allowing pharmacists to focus on more critical, patient-centered tasks.
Shift from crisis to mid-to-long-term challenge
Despite employment and demand for patient care services having largely returned to pre-pandemic levels and the use of contract labor – as well as contract labor rates – declining, labor shortages remain a top concern for health system CEOs, who now view the issue as a long-term challenge vs. an acute crisis to solve for.
Spotlight on Sub-Trends
What to Watch For
It’s widely accepted that labor shortages will continue to plague the pharmacy profession for the foreseeable future, though potential solutions are emerging and evolving rapidly. Health systems should closely monitor proposed changes in state and federal laws that may alter reimbursement models based on the broader role of the modern pharmacy professional. The development and availability of technologies and automated solutions that may help streamline pharmacy operations, speed up decision-making, and reduce labor demands should also be followed.5,6
Why It Matters to Health Systems
Labor shortages in pharmacy services significantly impact health systems’ ability to deliver effective patient care. Shortages can lead to delays in medication dispensing, increased errors, and reduced patient interaction while also contributing to burnout and turnover that compounds labor constraints. From a financial perspective, health systems could lose valuable dollars due to reliance on contract labor, continuous training and onboarding as a result of high turnover, decreased revenue from clinical services, and various operational demands directly related to short-staffed pharmacies.
Invest in long-term workforce development plans and programs
Modify recruiting and retainment strategies to include a focus on improving well-being and reducing burnout and turnover
Engage pharmacy staff with increased training, specialization, and development of career ladders
Explore opportunities that may allow some pharmacy professionals to work remotely, part-time, or in hybrid settings
Consider partnering with universities or training programs to fund scholarships in return for a defined employment commitment
Administrative:
Redesign care delivery and staffing models to incorporate telepharmacy and outsourcing for improved resource allocation
Employ automation and robotics to reduce lower-level repetitive tasks
Use AI and ML to streamline complex decision-making processes
Standardize operations and
formularies to create uniform
procedures across the enterprise
Utilize analytics and indexing to leverage data for operational insights and improvements
Migrate non-core activities such as retail, recurring, and homecare dispensing to a central fill operation
Operational:
Strategies for Success
With available labor resources dwindling and a shrinking pipeline, health systems must find creative solutions for better using the personnel they have. This may mean redistributing responsibilities, automating tasks with technology, or adopting remote delivery models for certain services. In parallel, health systems can contribute to a more long-term solution that rebuilds the pool of pharmacy professionals through innovative recruiting, staffing, and educational methods. Potential strategies for creating a more efficient and sustainable pharmacy workforce can be divided into two key areas:
1 https://www.bls.gov/ooh/healthcare/pharmacists.htm
2 https://bhw.hrsa.gov/data-research/projecting-health-workforce-supply-demand
3 https://www.bls.gov/ooh/healthcare/pharmacy-technicians.htm#tab-6
https://www.pharmacypracticenews.com/Opinion/Article/06-24/Addressing-the-Decline-in-Graduating-Pharmacists-The-Role-of-Artificial-
Intelligence-and-Automation/74011#:~:text=Recent%20data%20indicate%20a%20notable,60%25%20within%20the%20last%20decade.
4 https://www.drugtopics.com/view/student-staffing-shortages-continue-to-impact-pharmacy-profession?utm_source=www.drugtopics.com&utm_medium=relatedContent
5 https://bringoz.com/retail-pharmacy-trends-that-will-impact-2024/#:~:text=The%20retail%20pharmacy%20industry%20 in%202024%20is%20poised%20for%20innovation,and%20technology-driven%20healthcare%20solutions
6 https://www.pharmexec.com/view/four-for-2024-predictions-for-the-future-of-pharmacy-technology
How McKesson’s P&AS Team Can Help
Many of McKesson’s Professional & Advisory Services (P&AS) experts began their
careers as health system pharmacists, and solving for labor shortages – both acutely,
through efficiency strategies and solutions, and more broadly with efforts to build and
develop the workforce long term – is equal parts personal and professional priority.
For health systems feeling the strain of pharmacy labor shortages, our P&AS
team can discuss how our advanced offerings, including central fill options, CSCs,
Contract Concierge, and others* can help alleviate your most pressing operational
and administrative burdens so you can achieve more – even with less.
For more information about how our P&AS experts can help you combat labor and resource constraints to achieve more for the business of pharmacy, contact us directly at pas@mckesson.com.
