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Incorporating medication therapy management into community pharmacy workflows

Author

Listed:
  • Yucheng Chen

    (Bloomsburg University of Pennsylvania)

  • Stephanie A. Gernant

    (University of Connecticut)

  • Charlie M. Upton

    (ProHealth Physicians – OptumCare)

  • Manuel A. Nunez

    (University of Connecticut)

Abstract

Medication Therapy Management (MTM) is a group of pharmacist-provided services that optimize individual patients’ drug therapy outcomes. Since community pharmacies’ primary business platform is the dispensing of medications, and providing MTM services is a secondary source of revenue, pharmacies with limited resources are operationally challenged when trying to efficiently deliver both types of services. To address this problem, we follow a queueing network approach to develop an operational model of a community pharmacy workflow. Through our model, we derive structural results to determine conditions for a pharmacy to achieve economies of scope when providing both prescription and MTM services. We also develop a process simulation to compare different scenarios according to our economies of scope model, varying in provided services, personnel, service demand, and other operational variables. Outcomes examined include profitability, service rate, and sensitivity of some operation variables to profitability. Based on our results, we provide practical insights to help community pharmacy administrators and healthcare policy makers in their decision process.

Suggested Citation

  • Yucheng Chen & Stephanie A. Gernant & Charlie M. Upton & Manuel A. Nunez, 2022. "Incorporating medication therapy management into community pharmacy workflows," Health Care Management Science, Springer, vol. 25(4), pages 710-724, December.
    • Handle: RePEc:kap:hcarem:v:25:y:2022:i:4:d:10.1007_s10729-022-09610-7
    DOI: 10.1007/s10729-022-09610-7
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    References listed on IDEAS

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    4. Xinhui Zhang & Doug Meiser & Yan Liu & Brett Bonner & Lebin Lin, 2014. "Kroger Uses Simulation-Optimization to Improve Pharmacy Inventory Management," Interfaces, INFORMS, vol. 44(1), pages 70-84, February.
    5. Panzar, John C & Willig, Robert D, 1981. "Economies of Scope," American Economic Review, American Economic Association, vol. 71(2), pages 268-272, May.
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