Cost Savings Program

Gayco Healthcare can show you that the resources you need may be sitting on your expense report. Why pay more money for pharmaceutical services when you can get more service for less money? Let us talk with you about our innovative ideas that allow an increase in both services provided by pharmacy and staffing available to LTC facility, while decreasing costs to both the LTC facility and the LTC residents.

The three programs below will explain our cost savings strategies.

Pricing

Gayco Healthcare’s pricing for medication is 5% to 30% lower than other long-term care pharmacies. This pricing is for Medicare Part A medications, facility paid medications and private pay medications. We believe there should be one price for all residents and that price should be fair.

The following data was gathered from actual monthly comparisons done for nursing facilities. It shows the monthly Medicare Part A savings that facility would have experienced, if Gayco Healthcare was their LTC pharmacy.

Facility A 92 beds $1362.17 savings
Facility B 104 beds $901.14 savings
Facility C 92 beds $1820.39 savings
Facility D 110 beds $1689.90 savings
Facility E 104 beds $1508.68 savings
Facility F 101 beds $1544.34 savings
Facility G 61 beds $786.46 savings
Facility H 94 beds $1721.30 savings
Facility I 100 beds $980.61 savings
Facility J 133 beds $1228.20 savings
Facility K 102 beds $3499.84 savings
Facility L 108 beds $1326.89 savings
Facility M 108 beds $945.99 savings

Combined Dispensing Fees:

This shows the direct savings of combining dispensing fees. (i.e., A Medicare Part A patient gets #7 Lanoxin 0.125mg daily. We send 7 doses every 7 days on 10/1, 10/8, 10/15, 10/22, and 10/29. The regular charge for a 7-day supply is $5.00. If a pharmacy does not combine charges then the facility is billed $5.00 x number of times medication is sent. In this case, the charge would be $5.00 for #7 Lanoxin 0.125mg on 10/1, 10/8, 10/15, 10/22, and 10/29 for a total bill of $25.00 for #7 Lanoxin 0.125mg for the month of October. If a pharmacy does combine charges then the 7 doses that are sent on 10/1, 10/8, 10/15, 10/22, and 10/29 are combined to the first billing day of the month. In this case, the charge would be $6.48 for #35 Lanoxin 0.125mg for the month of October. The secret is that for #7 Lanoxin 0.125mg the medication cost is $0.37 and the dispensing fee is $4.37)

If you are wondering why we extend such a savings to our customers, Georgia Medicaid requires that all pharmacies combine dispensing fees within each month. Because Gayco believes in one price for all customers, this combining of dispensing fees is provided for all of our customers (private pay, Medicare Part A, VA contract, etc)

Facility A $4.63 x 357 Rx's/5 months = $1652.91 savings | average of $330.58/month
Facility B $4.63 x 193 Rx's/5 months = $893.59 savings | average of $178.72/month
Facility C $4.63 x 299 Rx's/4 months = $1384.37 savings | average of $436.09/month
Facility D $4.63 x 326 Rx's/4 months = $1509.38 savings | average of $337.34/month
Facility E $4.63 x 63 Rx's/3 months = $291.69 savings | average of $97.23/month