Becker's Hospital Review

15 CFO / FINANCE 3 ways health systems can use real estate to save, grow By Alia Paavola H ospitals and health systems can realize untapped savings by better man- aging their real estate footprint and strategy, according to a July 19 report from real estate company JLL. The report analyzed ways that providers can achieve better cost management, care co- ordination and patient access through real estate strategies that promote systemness. "Real estate can be a means to achieve greater benefits of systemness, and real estate asset performance can be improved by a more systematic operational ap- proach," JLL said. "It's a mutually beneficial relationship that improves value for both owners and occupiers in the long run." Here are three strategies to leverage real estate to grow and find cost savings, according to JLL: 1. Establish a solid location strategy. Care locations influence brand percep- tion, patient access and care experience, which makes these decisions important, JLL said. To determine the best opportunities for growth, health systems should use location analytics and population trends, according to JLL. 2. Create integrated facilities management programs. Establishing facilities management programs can drive savings and prevent deferred maintenance on buildings, JLL said. Having a plan that is integrated can pool risk while aligning resources, mitigating overlap and reducing silos. One of the best ways to ensure an integrated program is to collect data on the facilities themselves, including utilization rates, energy usage and maintenance schedules. 3. Boost real estate value through systemness. Typically, health systems that are more integrated have better credit ratings than less integrated systems or individual hospitals, JLL noted. Credit strength can be used to negotiate more favorable lease terms or drive greater returns in the event of a sale or leaseback transaction. As a result, integrating real estate locations is beneficial to real estate value. "Systemness can create value for real estate assets that health systems can monetize, allowing systems to redeploy capital to expand or modernize care de- livery or use to fund other priorities," JLL said. n 250 workers at Intermountain affected by 25 pharmacy closures By Morgan Haefner I ntermountain Healthcare's move to close 25 of its retail pharma- cies and transfer prescriptions and inventory to CVS pharmacies will affect 250 employees, accord- ing to KSL TV. On July 7, the Salt Lake City-based health system said the closures would affect pharmacies in Utah with low use. Inpatient pharmacies won't be affected by the change. Intermountain said it will still offer medication management services and financial support for patients. Intermountain told the local broad- caster that the 250 employees af- fected by the change aren't being laid off and the system plans to move them to other jobs. "Intermountain is committed to working with impacted employ- ees to identify an opportunity that aligns with their needs and prefer- ences, and they will have the option to transition to other roles within Intermountain and also be consid- ered for positions at local CVS Phar- macy locations," the system stated in an email to the news station. Pharmacists and pharmacy techni- cians have raised concerns about the number of open positions within the organization versus the number of employees affected by the decision. One technician told KSL TV: "I don't understand how this is not a lay- off situation. We've been offered severance packages. We've been offered career counseling, re- sume coaching." The pharmacy closures come as the locations record financial loss- es. The locations lost $11 million in 2020 and $6 million through May of this year, according to KSL TV. n 10 most expensive brand-name drugs in the US By Katie Adams I n the U.S., prices for brand-name drugs are constantly rising, especially among certain med- ications for autoimmune diseases and diabetes. Pharmacy discount company GoodRx analyzed cash prices for the top 100 brand-name drugs in the U.S. based on a representative sample of prescription fills. Below are the 10 most expensive brand-name medications, along with their manufacturer and average monthly cash price: 1. Humira (AbbVie): $9,065 2. Cosentyx (Novartis): $8,907 3. Enbrel (Amgen): $8,717 4. Otezla (Amgen): $6,193 5. Dupixent (Sanofi): $5,298 6. Biktarvy (Gilead): $4,083 7. Genvoya (Gilead): $4,061 8. Descovy (Gilead): $2,195 9. Tivicay (ViiV): $2,150 10. Latuda (Sunovion): $1,604 n

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