ISSC sets direction for Pre-Scribe network

Drug Store News, Oct 9, 1995 by Marie Griffin

WHITE PLAINS, N.Y. - Noting "significant interest" in its new physician-to-pharmacy electronic link coming from the drug store industry, ISSC's Kyle Farmer said, "We have to stay focused in our rollout strategy," which calls for having six major drug chains using the system by the end of the first quarter of 1996.

Farmer is general manager of the Pre-Scribe project for Integrated System Solutions Corp. (ISSC), the division of IBM that purchased the computer software called Pre-Scribe, which is to be installed in physicians' offices, as well as the "network piece and hub" that enables pharmacies to interface with the doctors. from Walgreen Co. in late August. Walgreens had been developing the system for the past five years, originally for its own exclusive use, to reduce the telephone time required by pharmacists to obtain refill authorizations and new prescription orders from physicians.

Since Walgreens had announced its intention to sell the unit last summer, other major drug chains have had time to size up the system, and, by the time the sale closed, ISSC already had "the continuing participation of the Walgreens pharmacies," as well as Eckerd and American Drug Stores already beginning pilots. Revco subsequently launched a test, and Thrifty PayLess and Rite Aid have agreed to pilot the system, according to Farmer.

By the end of the first quarter of '96, Farmer's goal is to have Eckerd and Revco as well as Walgreens up on the Pre-Scribe network, which means that they would be "integrated with their pharmacy systems so that they can receive electronic prescriptions from physicians or transmit refill requests to physicians from the terminals they operate in their pharmacies every day." Also within that time frame, Farmer plans to have pilots running with Thrifty PayLess and Rite Aid and continuing progress made with American Drug.

"We're spending a lot of time with the major chains to be sure we incorporate their changes and ideas into the system," said Farmer. "We want to be sure we have all the right things in place at the outset so that the rollout goes smoothly for everyone."

Farmer's strategy is to start big, getting the major drug chains up and running first in the markets where Pre-Scribe chains have the greatest market penetration. The "size, market presence and relationships" of the chains are the key to signing up large physician groups in those markets, another critical component of the rollout, he noted.

"Florida, among other places, is a logical priority for us in the launch," said Farmer, explaining the combined presence of Walgreens and Eckerd enables ISSC to entice physicians in several markets with a system that will connect them with half or more of the retail pharmacies.

While supermarket combo and mass merchant chains with pharmacies have "expressed interest" in the system, according to Farmer, "the greatest interest has come from the drug chains.

While the Pre-Scribe software (which will be licensed under the more familiar IBM name) is being offered free to physicians, drug chains and independents must pay to join Pre-Scribe Services, the network component that is being administered by ISSC. Once on line, pharmacies will be charged for transmissions.

Farmer noted that ISSC will "incentivize" chains that help bring doctors on board. "The pharmacists and pharmacy techs are the ones who have the day-to-day relationships with the doctors, so it makes sense to have those people `knock on the doors' of the physicians," said Farmer. "Some chains will want to do that, and we'll equip them, train them and compensate them as appropriate."

With Walgreens, Pre-Scribe is being used in 13 markets.

"There are more than 4,500 doctors in 1,000-plus clinics using Pre-Scribe, handling roughly 200,000 prescriptions a month," said Farmer.

Why Walgreens sold

Although Walgreens was actively using Pre-Scribe, the chain chose to divest in order to speed its rollout. "By selling the program to ISSC, Pre-Scribe will be available to a broad market quickly, enhancing its benefits for physicians, pharmacists and patients," commented L. Daniel Jorndt, president and chief operating officer of Walgreens.

Industry sources observed that Walgreens faced two major obstacles as it had attempted to roll out the direct link to physicians on its own. For one thing, physicians would be less inclined (in some markets more than others) to install and use Pre-Scribe if it enabled them to communicate only with Walgreens pharmacies. Yet, if Walgreens opened the system to other chain and independent pharmacies (as it had reportedly started to do in some markets), competing chains would be wary of allowing their data to move through a Walgreens-owned system.

For its part, Walgreens is most interested in the time, labor and cost savings Pre-Scribe represents. Filling 170 million prescriptions a year, most of them through its 2,000-plus retail pharmacies, Walgreens' greatest return will come through the efficiencies the direct-link system provides.

Walgreens documented a savings of 97 seconds per prescription when comparing the average time it takes pharmacy personnel to complete a call to a physician's office for a refill authorization - 108 seconds - with the transmittal time between the pharmacy and the physician's office and back with Pre-Scribe - which takes an average of 11 seconds. The time savings for a new presciption is similar, according to David Bernauer, Walgreens vice president and chief information officer.