Pharmacy Budget and Productivity

Question 1

DRG reimbursement

Answer 1

Almost 90% of payers use this system. Drugs generally do not product the revenue they once did. Payment is not keeping up with inflationary costs. 50% of hospitals are losing money. Hospitals are looking to drastically cut costs.

Question 2

Clinical staff

Answer 2

Variable cost

As volumes decrease, clinical departments should down-staff.

Question 3

Salaries

Answer 3

The motivation for administration to decrease salary dollars is great. Salaries account for 40% of hospital expenses.

Question 4

Pharmacy budget

Answer 4

Drugs are the number one cost followed by salaries- these two make up 97% of the budget.

Question 5

Pharmacy metrics

Answer 5

Usually measured by dispensed doses or processed orders. Does not account for clinical interventions made by the Pharmacist.

Question 6

Productivity metric

Answer 6

Measures interventions made by pharmacists and how much money we can save by making them- warfarin/lovenox bleeds example.