By Matt Parker, PharmD, MHA, 340B ACE — VP, Pharmacy Services, Trulla
Healthcare leaders are under relentless pressure to do more with less—reduce drug spend, optimize staff time, and create consistency across sprawling systems. That’s why the CSC (Consolidated or Centralized Service Center) model continues to spark so much conversation. It’s not just about warehouses, automation, or technology—it’s about building a scalable strategy that saves money, frees up people for higher-value work, and enhances patient safety through standardization.
In a recent roundtable, I had the opportunity to sit down with Jordan Probst, Director of Central Pharmacy at Baptist Health; Jeff Mandel, VP of Pharmacy at Methodist Healthcare–San Antonio; and Jay Bornstein, Director of Pharmacy Supply Chain at Beth Israel Lahey Health. Each leader is at a different stage of their CSC journey—one just cutting the ribbon, one fully mature, and one still scaling. Despite those differences, three lessons stood out that any IDN can apply.
1) Start where value is provable: purchasing, NDCs, and right-sizing
If you need quick, defensible wins, begin with strategic purchasing and NDC standardization—they unlock price leverage, 340B accuracy, and fewer EMR/crosswalk headaches. Pair that with repackaging and low-unit-of-measure (LUM) to convert “pennies” into meaningful savings and shrink on-hand inventory and waste. Both Jordan and Jay shared how quickly these approaches translated into measurable savings and stronger shortage mitigation, while Jeff emphasized how they build the financial case for long-term CSC adoption.
2) Build the stack deliberately: prove first, automate second
You don’t need a cathedral to start. Jay’s team began with basic tools like Excel and SharePoint before demonstrating enough value to justify advanced platforms. Jordan’s operation, by contrast, now runs one of the most automated CSCs I’ve seen, with sortation systems and repackaging lines. Jeff’s group sits in the middle, tightly integrated with supply chain and leveraging warehouse management systems for efficient manual picking. The common theme: Prove value first, then automate where it eliminates pain and risk.
3) Adoption beats architecture: align people, logistics, and resilience
A beautiful design fails without formulary alignment, route discipline, and staffing reality. Jordan described the months of work it took to plan delivery routes across Baptist’s wide geography and to recruit certified pharmacy techs in a tight labor market. Jeff emphasized change management—ensuring sites align on what the CSC carries so the warehouse isn’t simply another silo. And Jay stressed building trust early by starting with “virtual fixes” like NDC alignment to prove credibility before rolling out larger changes. All three echoed the need to plan for downtime—cyber events, weather, or utilities—because reliance on a CSC only grows.
Final thoughts
CSC strategy is no longer a “nice to have”—it’s becoming a premier lever for IDNs under financial pressure, staffing challenges, and growing demands for consistency. The opportunity is clear: CSCs unlock cost savings through purchasing scale, return time to frontline teams through standardization, and create a stronger foundation for patient safety.
The journey, however, doesn’t start with a massive build or perfect design. It starts with deliberate, incremental wins. As Jay Bornstein of Beth Israel Lahey Health reminded us: “Don’t let great get in the way of good. Just do something, then tweak and improve as you go.” That mindset captures the essence of CSC success—prove value first and let momentum carry you forward.
From my perspective, the path is simple but powerful:
- Define your value thesis—cost, labor, safety, or continuity.
- Win early with provable strategies like strategic purchasing, NDC standardization, and repackaging/LUM.
- Automate with purpose once you know where the true bottlenecks reside.
- Plan for resilience because as reliance on the CSC grows, downtime is a matter of when, not if.
The lesson is clear: CSCs aren’t one-size-fits-all, but they are fast becoming a necessity. Start where you can prove value, scale thoughtfully, and keep people and process at the center. Done right, CSCs don’t just save money—they become a strategic advantage that strengthens your entire health system.