Pharmacy Management Essentials For All Practice Settings Fifth Edition Leticia R Moczygemba Editor Download PDF Chapter
Pharmacy Management Essentials For All Practice Settings Fifth Edition Leticia R Moczygemba Editor Download PDF Chapter
Pharmacy Management Essentials For All Practice Settings Fifth Edition Leticia R Moczygemba Editor Download PDF Chapter
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DEDICATION
Contributors I ix
Preface I xiii
Acknowledgmcnts I xvii
Index I 695
CONTRIBUTORS
Steve Boone
Pharmacy Insurance Practice Leader, Heffernan Insurance Brokers, Chesterfield, Missouri
ix
x CONTRIBUTORS
PerryL Fri
Executive Vice President of Industry Relations, Membership and Education, Healthcare Distribution Alliance
(HOA} and Chief Operating Officer, HOA Research Foundation, Alexandria, Virginia
Md L Nelson, PhannD
Director of Research and Academic Affairs, Pharmacy Quality Alliance, Alexandria, Virginia
Rachel Sullivan
Project Manager, HDA Research Foundation, Alexandria, Virginia
• Every chapter has been updated to reflect the fluid nature of its respective management topic.
• New trends in the management literature are reflected in each of the chapters, including management trends
within and beyond pharmacy.
• Some chapters have been revised substantially and with new authors to provide users of the text with the most
relevant information. Examples include the following:
• Sustaining medication therapy management services through implementation science as well as other mod-
els of care delivery, such as continuous medication monitoring (CoMM).
• Leveraging leadership skills into practice by guiding change management, establishing a culture of employee
self-motivation, extracting the most from your resources and infrastructure, all while advocating for your
profession and the patients you serve.
• Broadening our views of how pharmacists manage the supply chain, particularly to ensure that they can
access safe and effective medications and other resources that are needed by their patients.
xiii
xiv PREFACE
• Maintaining compliance with laws, rules, and regulations which impact a pharmacy manager's ability to
care for patients and manage their practice.
• Developing new ways of organizing and managing our time for our own success and the success of others,
particularly given the challenges and opportunities provided by social media and other forms of technology.
We have also added new chapters commensurate with contemporary pharmacy practice in anticipation of
continually evolving models of care. These include:
• Ethical Decision Making, Problem Solving, and Delegating Authority, where pharmacists utilize appropriate
judgment processes when faced with decisions of how to optimize care in the face of budgetary constraints
and preferences of various stakeholders in the medication use process.
• Negotiation Skills, a skill needed through various components of practice, ranging from encouraging treatment
adherence from patients, to requesting a change from the prescriber in a patient's medication regimen, to
adjudicating a fair contract with a third-party payer for the services renders to covered enrolees.
• Pharmacy Technicians, the persons to whom pharmacists are increasingly delegating more responsibility and
greater numbers of tasks that pharmacists used to perform so that they can now spend more time in direct
patient care activities.
organization. After establishing the need for management in both our personal and professional lives, the next
four sections describe the management functions and resources that are common to all pharmacy practice set.-
rings (operations, people, money, traditional pharmacy goods and services). Chapters within each section focus
on important aspects of each function or resource.
As pharmacy practice moves from a product orientation to a patient orientation, there are unique challenges
that arise in managing the value-added services that pharmacists are devdoping to meet patient needs in medic~
tion therapy management. A section of this book is dedicated to the planning, implementation, and reimburse-
ment of these new patient care services offered by pharmacists.
Several chapters are dedicated to describing the risks inherent in pharmacy practice and the impact that
laws, regulations, and medication errors have on pharmacy management. The final section describes how man-
agement functions are applied by entrepreneurs and intrapreneurs in settings ranging from independently owned
community pharmacies to those devdoping new goods, services, and ideas in any setting to meet needs related
to medications and their use.
The creators of each chapter have put a great deal of time and effort into getting their final outputs ready for
consumers, but it rarely can be considered a "finished product." Textbooks are "works in progress" that can always
be improved. The best way to improve these products is to seek input from our users. As you use this book,
we would like to learn what you like about it, what could be improved, and what topics or features you would
like to see included in the future. Please feel free to share your thoughts at any time by contacting us through
pharmacy@mcgraw-hillcom. We plan to improve this book over future editions by listening to your feedback and
continuing to reflect changes in the management sciences and pharmacy practice.
We would like to thank the colleagues who have played provided an environment that makes this type of
an important role in our development throughout our endeavor possible. We would also like to thank all of
undergraduate, professional, and graduate studies, as the students we have taught who have inspired us to
well as at our institutions. In addition, as our careers continue to strive to become better educators.
have advanced, we also have come to know many We would like to thank everyone at McGraw-
great academicians in other disciplines and other Hill Education and, in particular, our editor, Michael
leaders in pharmacy who have greatly influenced our Weitz, for working with us to improve this compre-
careers and provided keen guidance. We have learned hensive pharmacy management textbook.
so much from all these people and feel fortunate that Finally, we would like to acknowledge the efforts
they have been willing to share their knowledge and of each of our chapter authors. We chose our authors
experience with us. not only because of their expertise but also because
Thanks must also go to all the faculty, staff, and of their dedication to teaching and the professional
administrators at Northeastern University, University development of pharmacy students and pharmacists.
of Texas College of Pharmacy, South University There is no way in which we could have completed
Savannah Campus, and Touro University who have this textbook without their efforts.
xvil
SECTION I
PHARMACY SCHOOL?
THE "MANAGEMENT" IN
MEDICATION THERAPY
MANAGEMENT
Shane P. Desselk, Leticia. R Moczygemba, DaviJ P. Zgarriclt, and Grtg L. Alston
as a chain pharmacy administrator and an independ- and The Ten Things A New Manager Must Get /Ught
ent pharmacy owner. He earned a Doctor of Phar- From the Start, and Own Your ~lue- The Real Future
macy degree from the University of the Pacific and ofPharmacy Practice. His passion lies in teaching the
has published three best-selling management books, next generation of pharmacists how to create value for
The Bossho/e Effect-Managing People Simplified the stakeholders they serve.
• LEARNING OBJECTIVES
After completing this chapter, readers should be able to
1. Identify changes in the roles of pharmacists since the early 1900s.
2. Describe how pharmacy practitioners and educators viewed the need for man-
agement skills as the roles of pharmacists evolved.
3. Identify principal domains of pharmacy care.
4. Describe how management skills and functions fit within the context of provid-
ing medication therapy management services.
5. Identify myths surrounding the practice of pharmacy and health care as a business.
6. Evaluate the need for a management perspective to better serve patients and
improve outcomes to drug therapy.
7. List the managerial sciences and describe their use as tools to assist pharmacists
in practice.
seemed to run smoothly at Middletown North. and empathic and seek personal reward and self-
Mary even noticed that the patients at Middletown actualization through the helping of others (Meyer-
North seemed happier and healthier than those at Juncol., 2015, Pohontsch et al., 2018; Warshawski et
Middletown South. al., 2018). Finally, many pharmacy students also con-
sider the relatively high salaries of their chosen profes-
sion prior to choosing a college major and a career
• CHAPTER QUESTIONS pathway. While few fields guarantee graduates a job,
and certainly not one with entry-level salaries in the
1. How have pharmacists' roles in delivering goods
six figures, pharmacy srudents take comfort in know-
and services evolved over the past few decades?
ing that employment in their profession will provide
What roles and functions do pharmacists perform
them with a generous and steady stream of income.
today?
It comes as no surprise that pharmacists and pharmacy
2. What is the significance of management within
students have been shown to be risk-averse individuals
the context of the profession's movement toward
who do not deal with uncertainties particularly well
the provision of direct patient-care services such as
(Latif, 2000; Leung et al., 2018). This further explains
medication therapy management? Why has its sig-
their gravitation toward science-oriented courses that
nificance typically been overlooked by pharmacists
offer straightforward solutions to problems.
and pharmacy students?
Unbeknown to many pharmacy students is that
3. What are some of the myths surrounding the con-
the actual practice ofpharmacy does not present a suc-
fluence of business practices and the provision of
cession of problems that can be resolved in such a lin-
patient care by pharmacists?
ear manner. While the sequential processes involved
4. What evidence exists that a business perspective is
in community pharmacy practice have remained the
critical to provide effective pharmacy services to
same-patients present with prescriptions, pharmacy
patients?
personnel fill them, and the necessary counseling
5. What are the managerial sciences, and how can
is offered or provided by the pharmacist-a careful
pharmacists use them effectively?
introspection reveals that the profession has under-
gone a rapid, head-turning transformation over just
• INTRODUCTION the past few decades. Pharmacists now are increas-
ingly involved with providing direct patient-care ser-
The preceding scenario, though perhaps overly sim- vices in addition to dispensing medications, and are
plistic, captures the feelings of many students who taking greater responsibility for patients' outcomes
select pharmacy as a major. They generally are inter- arising from drug therapy. Pharmacists have become
ested in science, have a desire to help people in need, more integrated into health care delivery teams that
and prefer a career offering long-term financial secu- coordinate patient care through the implementation
rity. Given that the pharmacy curriculum consists of of evidence-based guidelines and treatment algo-
courses that apply knowledge from physics, chem- rithms. This has been even further accelerated by
istry, anatomy, physiology, and therapeutics, most recent changes in states' pharmacist scope of practice
pharmacy students achieved success in science and regulations, collaborative practice agreements, reim-
math courses throughout their pre-pharmacy studies bursement incentives from payers, and the reorganiza-
(Keshishian et al., 2010). Second, students select- tion of health care delivery into medical home models
ing pharmacy as a major typically are attracted to and accountable care organizations (George et al.,
health care fields and may have contemplated nursing, 2018; Isasi & Krofah, 2015; McConaha et al., 2015).
medicine, or other health professions. Research has For students to better understand the way that
demonstrated that people in health care are caring pharmacy is practiced today, time should be devoted
6 WHY STUDY MANAGEMENT IN PHARMACY SCHOOL?
to understanding the major forces that have shaped Pharmacy was, at best, a "marginal" profession.
the profession. This chapter begins with a brief his- Most practitioners entered the occupation through
tory of the evolution of pharmacy practice in the 20th apprenticeships rather than formal education. The
century. This history, coupled with a snapshot of con- pharmacist's principal job function was described
temporary pharmacy practice, will make it clear that as the "daily handling and preparing of remedies in
the past and current pharmacy practice models are as common use" (Sonnedecker, 1963, p. 204). Phar-
much about management as they are about clinical macists, or "apothecaries," were often engaged in the
pharmacy practice. The chapter proceeds by pointing wholesale manufacture and distribution of medici-
out myths about the exclusivity of the pharmacy busi- nal products. Pharmacists' roles during this time
ness and patient outcomes and by providing evidence were considerably different than they are today. In
that what is best for the operation of a pharmacy busi- the early 20th century, pharmacists' primary roles
ness is often also best for the patients and other stake- were to procure raw ingredients and extemporane-
holders that it serves. The chapter concludes with a ously compound them into drug products for con-
brief discwsion of the managerial sciences-tools sumer use. While pharmacists had yet to achieve
that every practitioner will find weful at one point or recognition as health care professionals, they often
another regardless of the practice setting. This chapter had considerable autonomy in their practice. There
and all other succeeding chapters we an evidence-based was no dear distinction between "prescription" and
approach to discuss pharmacy management, relying "nonprescription" drugs. Although physicians were
on recent literature and research findings to describe engaged in the process of writing prescriptions,
and explain what is happening in practice today. pharmacists were not precluded from dispensing
Students are encouraged to explore readings of inter- preparations without a physician's order. Consum-
est among the references cited throughout the text. ers commonly relied on their pharmacists' advice
on minor ailments, and often entrusted the nick-
name of "doc" to their neighborhood pharmacist
• A BRIEF HISTORICAL (Hepler, 1987).
OVERVIEW OF PHARMACY Pharmacists had little choice but to have sharp
PRACTICE bwiness acumen to survive. Since few of the products
they dispensed were prefabricated by manufacturers,
There have been several noteworthy efforts to describe pharmacists had to be adept at managing inventories
the evolution of pharmacy practice. Some have of bulk chemicals and supplies wed in compound-
described the process within the context of "waves," ing the preparations they dispensed. They also had to
or shifts, in educational and indwtrial forces (Hepler, have a keen sense of how to manage time and people
1987), another through identifying stages of profes- to accomplish a series of complex tasks throughout the
sional identity (Hepler & Strand, 1990), and still workday.
another through describing activation of pharmacists' A series of studies commissioned by the US gov-
setvices as stewards of public health in a medical care ernment in the early 1900s produced what became
system increasingly challenging for patients to navi- known as the "Flexner reports" in 1915. These reports
gate (Blanchard et al., 2017). While these approaches were critical for health care professionals and their edu-
appear quite different, their descriptions of the princi- cation, including pharmacists. The reports questioned
pal drivers of change closely mirror one another. the validity and necessity of pharmacists as health
care professionals. Shortly thereafter, the American
Pharmacy in the Early Twentieth Century Association of Colleges of Pharmacy (AACP) com-
Pharmacy in the United States began in the 20th missioned a study directed by W. W. Charters that
century much like it existed in the latter 1800s. ultimately served as the basis for requiring a 4-year
The "Management" in Medication Therapy Management 7
baccalaureate degree program for all colleges of phar- and content driven. A fifth year of education was
macy (Hepler, 1987). These and other forces led to added to the 4-year baccalaureate degree by colleges
dramatic changes in pharmacy in the coming years. and schools of pharmacy during the late 1940s and
early 1950s following the AACP Committee on Cur-
Pharmacy in the Middle of the riculum report entitled, "The Pharmaceutical Cur-
Twentieth Century riculum" (Hepler, 1987). It was during this time
The 1940s through the 1960s often have been referred that pharmacology, pharmaceutics, and medicinal
to as the "era of expansion" in health care (Smyrl, chemistry matured as disciplines and became the
2014). The Flexner reports paved the way for a more core of pharmacy education. Pharmacy students were
scientifically sound, empirically based allopathic required to memorize an abundance of information
branch of medicine to become the basis by which about the physical and chemical nature of drug prod-
health care was practiced and organized. The federal ucts and dosage forms. Courses in the business aspects
government invested significant funds to expand the of pharmacy took a secondary role, whereas education
quantity and quality of health care services. The in patient care (e.g., communications, therapeutics)
Hospital Survey and Construction (Hill-Burton} Act was for all intents and purposes nonexistent.
of 1946 provided considerable funding for the reno- With the APhA Code of Ethics suggesting that
vation and expansion of existing hospitals and the pharmacists not discuss drug therapies with patients,
construction of new ones, primarily in underserved the profession lost sight of the need for pharmacists
inner city and rural areas (Torrens, 1993). to communicate effectively with patients and other
Ironically, pharmacists began to see their roles health care professionals. As the number of hospital
diminish during this era of expansion in health care. and chain pharmacies expanded, resulting in pharma-
Among the factors responsible for this decline were cists being more likdy to be an employee than a busi-
advances in technology and in the pharmaceutical sci- ness owner, the importance of practice management
ences, coupled with societal demands that drug prod- skills was not stressed in schools of pharmacy. Ironi-
ucts become uniform in their composition. These cally, studies such as the "Dichter report" commis-
brought about the mass production of prefabricated sioned by the APhA revealed that consumers regarded
drug products in tablet, capsule, syrup, and dixir dos- pharmacists more as merchants than as health care
age forms, thus significantly reducing the need for professionals (Maine & Penna, 1996).
pharmacists to compound prescription orders. The
passage of the Durham-Humphrey amendment to
the Food, Drug, and Cosmetic Act in 1951 created a Pharmacy in the Latter Part of the
prescription, or "legend," category of drugs. Pharma- Twentieth Century
cists did not have the ability to dispense these drugs The era ofexpansion slowed in the 1970s when society
without an order from a licensed prescriber. Finally, began to question the value obtained from the larger
pharmacy's own "Code of Ethics" promulgated by the amount of resources being allocated toward health
American Pharmaceutical Association (APhA) stated care. Congress passed the Health Maintenance Act of
that pharmacists were not to discuss the therapeutic 1973, which helped to pave the way for health main-
effects or composition of a prescription with a patient tenance organizations (HMOs) to become an integral
(Buerki & Vottero, 1994, p. 93). This combination of player in the ddivery of health care services. Govern-
forces relegated the role of the pharmacist largely to a ments, rather than the private sector, took the lead
dispenser of pre-prepared drug products. in attempting to curb costs when they implemented
The response of schools and colleges of pharmacy a prospective payment system of reimbursement for
to these diminishing professional roles was the crea- Medicare hospitalizations based on categories of
tion of curricula that were more technical, scientific, diagnosis-related groups (Pink, 1991).
8 WHY STUDY MANAGEMENT IN PHARMACY SCHOOL?
In 1975 the Millis Commission's report, Pharma- pharmacists willing and knowledgeable enough to
cists for the Future: The &port ofthe Study Commission provide patient-oriented clinical services face signifi-
on Pharmacy (Millis, 1975), suggested that pharma- cant barriers when practicing in a community phar-
cists were inadequately prepared in systems analysis macy environment (Blalock et al., 2013; Kennelty
and management skills and had particular deficien- et al., 2015; Schommer & Gaither, 2014). In addi-
cies in communicating with patients, physicians, and tion, the growth of mail order services in the outpa-
other health care professionals. A subsequent report tient pharmacy setting virtually excludes face-to-face
suggested incorporating more of the behavioral and consultation with patients. Mail order pharmacy has
social sciences into pharmacy curricula and encour- become a significant channel for the distribution of
aged faculty participation and research into real prob- pharmaceuticals and is used by the Veterans Admin-
lems inherent in pharmacy practice (Millis, 1976). istration system and many pharmacy benefits managers.
Prior to these reports, the American Society of Many brick-and-mortar pharmacy operations now
Hospital Pharmacists had published Mirror to Hospital have a significant mail order component to their
Pharmacy stating that pharmacy had lost its purpose, business as well. While providing consumers with a
falling short of producing health care professionals convenient way to obtain drug products, this form
capable of engendering change and noting that frw- of commerce has the potential to further remove the
tration and dissatisfaction among practitioners were pharmacist from patients and others who could ben-
beginning to affect students (Hepler, 1987, p. 371). efit from their clinical services. Moreover, this trend
The clinical pharmacy movement evolved in the has continued; at the time of writing this chapter,
1970s to capture the essence of the drug use control the massive e-retailer Amazon had begun its foray
concept forwarded by Brodie (1967) and promoted into the prescription drug market initially through
the pharmacist's role as therapeutic advisor. The clini- the purchase of a company (PillPack) that delivers
cal pharmacy movement brought about changes in medication to patients through the mail in packag-
pharmacy education and practice. After being intro- ing aimed to improve patient adherence (LaVito &
duced in 1948, the 6-year PharmD degree became the Hirsch, 2018). With Amazon's advantages in supply
only entry-level degree offered by a small number of chain and operational cost-savings (see Chapter 27),
colleges of pharmacy as early as the late 1960s and this could provide for a momentous disruption in the
early 1970s. The additional year of study was devoted prescription drug market. However, as described fur-
mostly to therapeutics or "disease-oriented courses" ther in this chapter and in many places throughout
and experiential education. The PharmD degree the text, sometimes challenges such as this can end up
became the entry-level degree into the profession in being a boon to practice and with the proper manage-
the early 2000s, with colleges of pharmacy phasing ment and leadership can be among a number of phe-
out their baccalaureate programs. nomena that could result in a greater opportunity for
These trends toward a more clinical practice pharmacists to become more highly involved in direct
approach may at first glance appear to be an ill- patient-care activities.
conceived response given recent changes in health
care delivery. These changes placed a heightened
concern over spiraling costs and have resulted in the • PHARMACEUTICAL
deinstitutionalization of patients and the standardiza- CARE AND MEDICATION
tion of care using tools such as protocols, treatment THERAPY MANAGEMENT AS
algorithms, and disease-based therapeutic guidelines. MANAGEMENT MOVEMENTS
Adoption of a clinical practice approach may also
appear to fly in the face of changes in the organiza- With these changes in mind, adopting pharmaceuti-
tion of the pharmacy workforce and current mar- cal care as a practice philosophy in the 1990s would
ket for pharmaceuticals. Studies have suggested that have appeared "a day late and a dollar short" for both
The "Management" in Medication Therapy Management 9
the profession and the patients it serves. And indeed, "domains" in which these standards could be classified
that might have been the case had the concept of (Desselle & Rappaport, 1995). These practice domains
pharmaceutical care been entirely clinical in nature. can be found in Table 1-1. Figuring prominently into
The originators of the concept fervently stressed that this classification was the "risk management" domain,
pharmaceutical care was not simply a list of clini- which included activities related to documentation,
cally oriented activities to perform for each and every drug review, triage, and dosage calculations. However,
patient but was, in fact, a new mission and way of the contributions of the managerial sciences do not
thinking that takes advantage of pharmacists' accessi- stop there. The remaining four domains connote sig-
bility and the frequency to which they are engaged by nificant involvement by pharmacists into managerial
patients-a way of thinking that engenders the phar- processes. Two of the domains ("services marketing"
macist to take responsibility for managing a patient's and "business management") are named specifically
drug therapy to resolve current problems and prevent after managerial functions.
future problems related to their medications.
It has been argued that the focus on preventing
and resolving medication-related problems is simply From Pharmaceutical Care to Medication
an extension of risk management (Heringa et al., 2016 Therapy Management and Other Paradigms
see also Chapter 11). Risks are an inherent part of While the pharmaceutical care movement made an
any business activity, including the provision of phar- indelible mark on the profession, its use in the mod-
macy services. Common risks to a business include ern lexicon describing pharmacists' services is fad-
fire, natural disasters, theft, economic downturns, ing. It has been replaced with terminology that more
and employee turnover, as well as the fact that there accurately reflects pharmacists' growing roles in the
is no guarantee that consumers will accept or adopt provision of public health services and reorganization
any good or service that the business offers. The prac- of care into medical homes. In recognizing the mor-
tice of pharmacy involves additional risks, specifically bidity and mortality resulting from medication errors
the risk that patients will suffer untoward events as as a public health problem, the profession embraced
a result of their drug therapy or from errors in the the concept of medication therapy management
medication dispensing process. These events are sig- (MTM). MTM represents a comprehensive and pro~
nificant because they may result in significant harm active approach to hdp patients maximize the ben-
and even death to a patient. They can also harm phar- efits from drug therapy and includes services aimed
macists and their businesses. Risk management sug- to facilitate or improve patient adherence to drug
gests that risk cannot be avoided entirely, but rather therapy, educate entire populations of persons, con-
it should be assessed, measured, and reduced to some duct wellness programs, and become more intimately
feasible extent (Flyvbjerg, 2006). involved in disease management and monitoring. The
The idea that pharmaceutical care should be MTM movement has been strengthened by language
viewed strictly as a clinical movement was called into in the Medicare Prescription Drug. Improvement
question (Wilkin, 1999). Evidence that pharmaceuti- and Modernization Act (MMA) of 2003 (Public Law
cal care existed in part as a management movement Number 108-173, 2010), which mandates payment
was provided in a study that sought to identify stand- for MTM services and proffers pharmacists as viable
ards of practice for providing pharmaceutical care health professionals that may offer such services. The
(Desselle, 1997). A nationwide panel ofexperts identi- place of MTM in health care delivery was advanced
fied 52 standards of pharmacy practice, only to have a even further in the Patient Protection and Affordable
statewide sample of pharmacists judge many of them Care Act, which established pilots for integrated care
as unfeasible to implement in everyday practice. Of delivery, comprehensive medication review for Medi-
the practice standards that were judged to be feasible, care beneficiaries, and grants specifically for MTM
the researchers constructed a system of "factors" or programs (Public Law Number 111-148, 2010). As
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identical with my own, to the interesting discussion of Mr. W. R. B.
Gibson in Personal Idealism, p. 144 ff.
166. Compare Bradley, Appearance and Reality, chap. 23, note 2
to p. 331 (1st ed.); Lotze, Metaphysic, bk. ii. chap. 7, pp. 209, 210
(Eng. trans., vol. ii. p. 89 ff.); Ward, Naturalism and Agnosticism, vol.
i. pp. 84-91 (Conservation of Mass), 170-181 (Conservation of
Energy).
167. If we merely desired to fix the sense of the term mass without
introducing the concept of constant mass, we might of course
mass of B
consider two bodies only, A and B. Then the ratio ——— =
mass of A
acceleration of A in presence of B
————————————— See Mach, Science of Mechanics, p.
acceleration of B in presence of A.
216 ff.; and Pearson, Grammar of Science, p. 302 (2nd ed.), on
which the above account is based.
BOOK IV
RATIONAL PSYCHOLOGY:
THE INTERPRETATION OF LIFE
CHAPTER I