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Over the course of this year, there has been a growing trend focused on hospital systems making a conscious effort to streamline their operations, tackling drug shortage challenges and decreasing costs in the process.¹

Eskenazi Health opens $10M fulfillment center in Indianapolis

Back in March, Eskenazi Health opened a $10 million, 32,000 square-foot pharmacy central fulfillment center in Indianapolis, IN.^1,2 With the help of a machine-automated process to fill patient prescription orders and specialized equipment to automate compliance blister packaging, the company anticipates that nearly 60% of all prescriptions will be filled at the new fulfillment center within five years.

“We have a vision for a fundamentally different model of health system retail pharmacy. This facility will allow us to take the commodity work out of our retail pharmacies to free up our staff to do different work,” said Christopher Wickesberg, PharmD, MBA, director of Eskenazi Health Pharmacy’s director at the time of the announcement. “This is a once-in-a- generation infrastructure investment that will allow Eskenazi Health to continue to meet the medication needs and improve the health of the Indianapolis community for many years to come.”

WVU Medicine reports millions in savings from central pharmacy service center

WVU Medicine has saved millions by investing in a centralized pharmacy service center that supports its entire health system. The 25,000 square-foot facility—formerly belonging to Mylan Pharmaceuticals—allows for bulk purchasing, centralized medication preparation, and streamlined distribution. This has resulted in estimated cost reductions of $620,000 alongside operational efficiencies.¹ There has also been a boost in quality control and inventory management, and perhaps most importantly, the timely delivery of medications to all network hospitals for the stakeholders who matter most, the patients.

St. Luke’s launches 330,000-square-foot consolidated service center

Meanwhile, in a process that was nearly a decade in the marking, St. Luke’s Health System unveiled last month a new 330,000 square-foot consolidated service center (CSC) in Boise, ID, in an effort for it to serve as a logistical hub for the hospital system.³ The CSC will be centralizing drug distribution by providing:

• Enhanced visibility, standardized oversight, and improved demand forecasting for supplies, pharmaceuticals, and services
• Streamlined ordering, fulfillment, and logistics, with the expanded capacity for storage, buffer stock, and ancillary services
• Decreased dependence on third-party vendors and outsourcing, driving significant cost savings.
• Increased responsiveness to external supply chain pressures through better inventory control and standardized supplier management.

"Today, the center is preparing and distributing medical and non-medical supplies, and medications daily to most of St. Luke’s eight medical centers, more than 370 clinics, and the many other support facilities in south central and southwestern Idaho,” commented Adrian Wengert, vice president of supply chain and procurement for St. Luke’s. “The CSC will not only enhance how we manage our supply chain but also ensure we’re better prepared for the unexpected.”

Inova Health opens Virginia’s largest centralized pharmacy center

Innova Health System in Virginia opened a 75,000 square-foot central pharmacy center, which will host specialty, retail and mail-order pharmacy ops, according to Becker’s Hospital Review.¹ The hospital center is calling it the largest centralized pharma services center in the state, with the capability to unite clinical pharmacists and pharmacist liaisons under the same room, while supporting patients with medication management.

UVA Health to launch new centralized services center in 2026

As for upcoming plans, UVA Health plans to open a 40,000-square-foot centralized services center of its own, adding 50 jobs—featuring pharmacists and pharmacy technicians, along with supply chain and information technology specialists—in the process. Set to open in January 2026, it is expected to feature an automation system that can help the pharmacy process as many as 4,000 Rxs per shift.⁴

“This expansion will enable us to provide industry leading specialty and ambulatory pharmacy services to more patients—in addition to the 35,000 patients we now care for—across UVA Health’s medical centers and clinics around Virginia, as well as through our home delivery programs that reach 16 states,” said Joshua Weber, PharmD, MBA-HCM, CSP, BCMTMS, 340B ACE, director of UVA Health’s specialty and home delivery pharmacy services.

References

1. Murphy A.The Health Systems Betting Big on Centralized Pharmacy Hubs. Becker’s Hospital Review. August 7, 2025. Accessed August 112, 2025. https://www.beckershospitalreview.com/pharmacy/the-health-systems-betting-big-on-centralized-pharmacy-hubs/

2. Eskenazi Health to Open Pharmacy Central Fulfillment Center on Indy’s Northwest Side. Ezkenazi Health. March 5, 2025. Accessed August 112, 2025. https://www.eskenazihealth.edu/news/eskenazi-health-to-open-pharmacy-central-fulfillment-center-on-indy-s-northwest-side

3. St. Luke’s Unveils New 330,000-Square-Foot Consolidated Service Center Aiding Supply Chain, Expanding Pharmacy Capabilities. St. Luke’s. July 24, 2025. Accessed August 112, 2025. https://www.stlukesonline.org/blogs/st-lukes/notes-and-announcements/2025/jul/st-lukes-celebrates-consolidated-service-center-opening-ribbon-cutting

4. UVA Health Expanding Specialty, Home Delivery Pharmacy Services. UVA Health. April 7, 2025. Accessed August 112, 2025. https://newsroom.uvahealth.com/2025/04/07/uva-health-expanding-specialty-home-delivery-pharmacy-services/