82nd MDG demonstrates value of AFSO 21 Published May 21, 2008 82nd Medical Group SHEPPARD AIR FORCE BASE, Texas -- The 82nd Medical Group pharmacy recently completed a year-long Air Force Smart Operations for the 21st Century project that saved Team Sheppard over $3.45 million. Capt. Pat McMahon, a pharmacist with the 82nd MDG, led the group's pharmacy and therapeutics committee, in reviewing their processes and analyzing expenditures to bring about the savings. The pharmacy and therapeutics committee is responsible for adding or deleting medications on/off the medical group's formulary, the official list of medications maintained in the pharmacy. Captain McMahon began the project by attending specialized training which granted him access to a data base the allowed him to more aggressively monitor medications being filled within a 40-mile radius of Sheppard. By targeting high-volume, high-dollar expenditures, he was able to make recommendations to the committee and incorporate those medications into the Medical Group's formulary. By doing this, the medical group saved beneficiaries $254,000 in out-of-pocket co-pays, allowed them to receive a 90-day supply of medication (instead of the 30 day prescription given by outside pharmacies) and prevented repeated trips to local pharmacies. Additionally, medications filled in the local area cost approximately four times what it costs the medical group for the same medication. By bringing almost 15,000 prescriptions into the medical group's in-house pharmacy, Captain McMahon was able to save the Military Health System an additional $3.2 million because of the cost savings associated with volume purchases through government contracts. Additionally, Captain McMahon successfully marketed the benefits of using the TRICARE Mail Order Pharmacy), which allowed delivery of medications directly to the homes of beneficiaries - further increasing cost savings.