ECONOMICS APPLIED TO PHARMACY PRACTICE

INPUT
RESOURCES

OUTPUT
Goods And Services
NEEDS WANTS DEMANDS

OUTPUT
DRUG PRODUCT

OUTPUT
SERVICES Community Pharmacy

TYPICAL COMMUNITY PHARMACY OUTPUT

P R O F I T

Output
SERVICES HOSPITAL PHARMACY

TYPICAL HOSPITAL PHARMACY OUTPUT

P R O F I T

Factors Affecting Drug Delivery of Pharmacy Products and Services

1. Patient Demographic Factors

2. Attitudes and Beliefs System

3. Third Party Payers

4. Competitive Market

5. Technology

Pharmacoeconomics
1.Determine optimal mix of labor and capital 2.Determine optimal output 3.Determine optimal hours of business operation 4.Determine levels of investment into risk management

10 Important Decisions under Management

Designing goods and services Managing quality Process strategies Location strategies Lay out strategies Human resource Scheduling strategies Supply chain strategies Inventory management Maintenance

1.Designing Goods and Services

2. Managing Quality
Compound Prescription Quality Product

3. Process Strategies

STEPS Performed During Operations

Efficiency

Good Services

Profitability

4. Location Strategy

5. Pharmacy Layout

6. Human Resource

7. Scheduling Strategy

8. Supply chain management

9.Inventory management

10. Maintenance Strategy

P R O F I T

EFFICIENT PRODUCTION OF GOODS SERVICES

Ensuring Quality in Pharmacy Operations

Quality of Care is the degree to
which health services for individuals and populations increase the likelihood of desired health outcomes and care consistent with current professional knowledge

Quality in Pharmacy Practice

1.Represent degree of excellence

2.Increases the probability of positive outcomes

3.Decreases the probability of negative outcomes

4.Corresponds with current medical knowledge

5.Offers the patient what he wants 6.Provides the patients with what he needs

How is Quality Measured

1.Structure
2.Process 3.Outcomes

Different Ways to Look Outcomes

E
C

H
O

M o d e l

A.Economical Outcomes
@ include direct costs and consequences @ include indirect cost and consequences @ both medical and non medical

B.Clinical Outcomes
@ include morbidity and mortality, event rates, and symptoms resolution

C. Humanistic Outcomes
@ measures of the human aspects of care - HRQoL

Methods for Ensuring Quality in Pharmacy Practice

1.Quality Assurance (QA)

Methods for Ensuring Quality in Pharmacy Practice

2. Quality Control (QC)

Methods for Ensuring Quality in Pharmacy Practice

3.Continuous Quality Improvement (CQI)

2 Important Ideas that Trascend QA and QC

1.CQI represents total system perspective concerning quality
2.CQI demands that the quality improvement process is continuous