2 minutes reading time (494 words)
Featured 

Economic Benefit of the Cloud based 340B

Economic Benefits of Cloud based 340B

A Covered Entity typically has many different types of workloads to manage in its data center,  and some of these data processings will be a better fit than others for a cloud based environment.  Therefore,  to optimize your economic benefit from the cloud, you must first have a good understanding of the your workload requirements. 

Commodity workloads for your hospital or pharmacy managements, such as everyday email, notifications, collaboration, and messaging applications, are straightforward and well defined covered entity business processes executed over and over again. The economic benefit for such workloads with these characteristics comes from leveraging cloud capabilities such as standardization, optimization and scalability.  A commodity workload such as an email application, balanced data processing would be good fit for the cloud.

Typical Health care software systems such as ADT, EHR  and Inventory Management applications are not likely to be a good fit for the public cloud because of security concerns. Hence you must go with private cloud for the covered entity.  The reason for this is that any potential economic benefit from the cloud is outweighed by security and compliance issues.  A Covered Entity may have specialized workloads that are used occasionally by a select group of users.  These specialized workloads may have run effectively for many years in the conventional data center, so there may be no economic benefit in the moving them to the cloud.

After you evaluate your mix of data processings,  however, you will find many situations where the 340B standardization, flexibility  and scalability of the cloud can deliver outstanding economic benefit in a private or hybrid cloud environment.


List of Economic Benefits in moving to private cloud.

Business Value vs Cost

A move to the cloud is likely to deliver an economic benefit if you have a need for the following.

Increased Computing Capacity: Your Covered Entity or Pharmacy is ramping up for a new but short term initiative, and you temporarily need some extra CPU capacity and extra storage.

A Software as a Service (SaaS) Solution: As your hospital has grown and diversified, everyone on your distributed financial system seems to be running a different version of your internal fianance automation tool. you have recently lost out on some big revenue based on the discrepancies in 340B NDC and claims data across different contract pharmacies.  you decide that implementing a SaaS (for. e.g. Cloud 340B) to run your 340B automation will ensure that all members of the pharmacy team have consistent and accurate invoices, replenishment orders, reverse purchase orders etc., when they need it.

Scaled Applications: Running your apps based notifications,  emails system require more and more servers and lots of server administration time spent on maintenance and upgrades.  You decide that a massively scaled application service in the cloud will deliver the performance you require and allow you to move the skilled administration team to focus on other projects.

90 Days FREE Trial

Why Business Intelligence (BI) is an essential ele...
The Most Common Way 340B Entities Create Hybrid En...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, 10 December 2019
If you'd like to register, please fill in the username, password and name fields.

Captcha Image