Pharmacy Management Exam 1

Modern functions of management:

-____

-____

-____

-____

energize, empower, support, communicate

What level of management is defined as the ability to manage our behaviors, thoughts, and emotions in a conscious and productive way?

self-management

What level of management is defined as your relationships with others?

interpersonal

What level of management is defined as running processes and resources to meet the company's goals?

organizational

5 Roles a Pharmacy Manager Plays

-direct ___

-direct ___

-administrator of ___

-colleague

-pharmacist professional

supervisor, report, services

"Some employees want more direction and contact from their manager and others do not" is which type of diversity attribute that a manager needs to be aware of when building a team culture?

Management preferences

According to the course definition of management, is a staff pharmacist who organizes the weekly refill schedule acting as a manager?

Yes

Types of goals based on their importance to the pharmacy:

-____

-____-___

-___-___-___

critical, solution-oriented, nice-to-have

According to the lecture, what is the predictable result of too much support from a pharmacy manager?

Real issues never get surfaced or resolved

According to the lecture, what is the predictable result of too much authority from a pharmacy manager?

people stop making decisions and wait to be told

scope

Strategic Planning: ___-wide

Business Planning: ___ service/operation

organization, one

focus

Strategic Planning: ___ term direction (horizon = 3-10 years)

Business Planning: ___ term feasibility (horizon = 1-5 years)

long, short

4 parts of SWOT Analysis

S = ___ (internal)

W = ____ (internal)

O = _____ (external)

T = _____ (external)

strengths, weaknesses, opportunities, threats

SMART Objectives

S = ____

M = ____

A = ____

R = ___-___

T = ____-___

specific, measurable, attainable, results-oriented, time-bound

Which statement best compares a mission statement and a vision statement?

-.The mission describes the ____ of the company; the vision describes what the organization wants to be at a ___ point

purpose, future

Which of the following best describes the financial pro forma in a business plan?

-A projection of _____ (volume x income per unit) and ____ and ____ costs, with best-, worst-, and most-likely-case scenarios

revenue, fixed, variable

Key components of business plan:

-title page

-executive _____

-table of contents

-mission statement

-business description

-service description

-_____ plan

-_____ plan

-operations

-____ (milestones and actions)

summary, marketing, financial, timeline

In the management structure, which leader directs the strategic planning of the organization?

Chief Executive Officer (CEO)

In the management structure, which leader directs the budget and financing activities of the organization?

Chief Financial Officer (CFO)

In the management structure, which leader directs the day-to-day?

Chief Operating Officer (COO)

"Theory of Command Intent" in operations management

-manager aware of what is the desired outcome in relation to the current mission

-focuses on the ____, knowing the path to get there may change

endpoint

4 main goals that operations managers try to achieve?

1) improving ___ and ___ of patient service

2) offering __ services to patients

3) creating and maintaining a collegial work ___ for employees

4) improving the ___ of the healthcare team

speed, efficiency, more, environment, knowledge

___ ___: a quality improvement approach built on the idea that output quality rises when defects are eliminated and processes are controlled tightly enough to reduce variation

six sigma

5-step process used to improve an existing process (DMAIC)

D = ____ the problem

M = ____ the current performance

A = ____ the causes of defects

I = ____ the process

C = ____ to hold the gains

define, measure, analyze, improve, control

___ ___: guidelines for improving efficiency by eliminating wastes, reducing costs, and optimizing workflow

lean principles

5 Fundamental Principles of Human Sigma

Rule 1 = You cannot measure and manage the employee and customer experiences as ___ entities

separate

5 Fundamental Principles of Human Sigma

Rule 2 = ___ frames the employee-customer encounter

emotion

5 Fundamental Principles of Human Sigma

Rule 3= You must measure and manage the employee-customer encounter at a ___ level

local

5 Fundamental Principles of Human Sigma

Rule 4= No ___ metric can predict success alone

single

5 Fundamental Principles of Human Sigma

Rule 5= Improving local performance requires ___, ___ intervention

deliberate, active

While the pharmacist verifies one prescription, a technician fills the next one and another technician works the drive-thru window, all at the same time. This is best described as which type of workflow?

Parallel

Which of the following are common workflow disruptors in a community pharmacy?

a) Compliance packaging

b) Telephone calls

c) Scanning prescriptions at the point of entry

d) Problem prescriptions

a,b,d

Which of the following can help improve pharmacy distribution workflow? SATA

a) Bar-code scanning to verify and count prescriptions

b) Having everyone, including the pharmacist, answer the phone during busy hours

c) Scanning the Rx at the point of entry and using workflow software

d) Paperless workflow

a, c, d

What are the three components that make up the flow of work?

Inputs, throughputs, and outputs

Which of the following are among the six steps to better manage your time?

a) Review and revise

b) Delegate every task you are given

c) Analyze how you use your time

d) Set your mission and S.M.A.R.T. goals

a, c, d

Covey's four quadrants of time management

Quadrant I = ___ and ____

urgent, important

Covey's four quadrants of time management

Quadrant II = ___ and ___ ____

important, not urgent

Covey's four quadrants of time management

Quadrant III = ___ and ___ ____

urgent, not important

Covey's four quadrants of time management

Quadrant IV = ___ ___ and ___ ____

not urgent, not important

Covey's four quadrants of time management

Quadrant I = ___ ___

Quadrant II = ___ ___

Quadrant III = ___ ___

Quadrant IV = ___ ___

do it, schedule it, delegate it, delete it

In the four quadrants of time management, where do the activities of scheduling monthly one-on-one coaching meetings and planning next year's staffing needs belong?

Quadrant 2

What type of tasks should not be added to a task manager under the GTD method because you should just do them right away?

-Tasks that take ___ minutes or less

2

After a new pharmacy service, a pharmacy measures patient satisfaction and quality-of-life scores. Which type of outcome is this?

humanistic

5 Ps of marketing

product, price, place, promotion, positioning

A pharmacy offers its blood pressure service at a convenient location and during evening and weekend hours. Which P of marketing is this primarily addressing?

Place

Marketing approaches

1) ____ marketing- get what you can and get the patient out the door

transactional

Marketing approaches

2) ____ marketing- every opportunity with the customer is an opportunity to help the customer and strengthen the relationship

relationship

Which marketing approach should pharmacy services embrace, and why?

-____ marketing, because clinical services depend on ongoing patient ___ and ___

relationship, relationships, trust

Types of Financial Statements

Profit and Loss Statement (P&L): a summary of the revenue and expenses for a specific ____ of time

period

Types of Financial Statements

Balance Sheet: a list of the assets, liabilities, and owner's equity as of a specific ___. Gives overall picture of business

date

Types of Financial Statements

Cash Flow Statement: sources and uses of ___. Often not shared with store-level managers

cash

Types of Financial Statements

Statement of Retained Earnings: a summary of the changes in retained earnings during a specific ___ of time

period

In ____ accounting, revenue and expenses are recorded in the time frame in which they are earned or incurred, regardless of whether cash is received

accrual

In ____ ___ accounting, revenue and expenses are recorded in the period in which they are actually received or spent

cash basis

Revenue spent on any item that has a useful life of more than 1 year is considered a ___ ___

capital expense

Spreading the cost of a capital good over the period of its useful life is called ___

depreciation

____ assets: can be converted to cash within 1 year

current

____ assets: not expected to be available as liquid assets in less than 1 year

fixed

Which of the following is a fixed asset in a pharmacy business?

a) Inventory (e.g., prescription medications)

b) A building or pharmacy equipment (e.g., a robotic filling machine)

c) Cash

d) Accounts receivable

b

What information is needed to estimate the annual gross revenue for a new clinical service in a pharmacy?

-The ____ of patients expected to enroll, how many ___ each uses the service per year, and the ___ charged per visit

number, times, price

How is a pharmacy's cost of dispensing (COD) per prescription determined?

-All yearly costs of ____ prescriptions (the bills paid anyway plus the extra costs) divided by the ____ of prescriptions dispensed

filling, number

The amount a community pharmacy owes a creditor on a monthly basis, such as a drug wholesaler, is what type of current liability?

accounts payable

If a community pharmacy's inventory turnover is lower than the benchmark, which of the following statements are true? (Select all that apply)

a) Inventory is too low

b) High inventory can increase the risk of damaged or expired inventory

c) Inventory is too high

d) High inventory can cause poor cash flow

b,c,d

Which of the following are solvency ratios? (Select all that apply, no partial credit)

a) Net profit margin

b) Acid-test ratio

c) Inventory turnover

d) Current ratio

b,d

Solvency Ratios

-Current ratio and acid-test ratio answers if the pharmacy can cover ___-___ ___

near-term bills

Solvency Ratios

-Liabilites/inventoryx 100, total liabilities/net worth x100, fixed dassets/net worth x100, and long term debt/net working capital x100 answers if the pharmacy is ___-___

over-leveraged

accrual-basis accounting: revenue is made when ___ are made, NOT when cash is received

sales

ABC = activity-based ___

ABB = activity-based ___

costing, budgeting

Which budgeting approach is used for pricing and understanding past costs?

activity-based costing (ABC)

Which budgeting approach starts with a forecast of activities and then determines the resources needed, making it the tool for building next year's budget?

activity-based budgeting (ABB)

___ ___: padding a budget by understating revenue or overstating expenses so targets are easy to meet

budgetary slack

5 Purposes of budgeting systems:

-___

-___ and ___

-allocating resources

-controlling profit and operations

-evaluating ____ and providing ____

planning, communication, coordination, performance, incentives

What is the difference between a pharmacy's gross profit and its net income?

-Gross profit subtracts only the cost of ____ sold from sales, while net income also subtracts ____ expenses such as salaries and rent

goods, operating

Responsibilities of a Pharmacy Benefit Manager (PBM)?

-developing and maintaining ____

-processing prescription drug ____

-negotiating ___ with pharmacies and manufacturers

-performing ____

-___ pharmacies

formularies, claims, contracts, DURs, operating

How do PBM's get paid?

1) ___ ___: PBM keeps rebates received from manufacturer instead of giving it to health plan

rebate retention

How do PBM's get paid?

2) ___ ___: Health plan pays PBM fixed price. PBM pays the pharmacy less and keeps the difference

spread pricing

How do PBM's get paid?

2) ___ ___+ ___ ___: Health plan pays actual cost of drug plus a flat service fee to the PBM

pass through, admin fee

A health plan pays its PBM $20 for a generic drug. The PBM pays the pharmacy $12 and keeps the $8 difference. What is this practice called?

spread pricing

A PBM's MAC for a generic drug is $3.00, but the pharmacy's acquisition cost is $4.00. What is this situation called?

Lower-of pricing

A third-party contract pays less than the pharmacy's full cost to dispense each prescription. Why might the contract still help the pharmacy?

-Because each added prescription pays ____ than the extra costs it creates, so it helps cover bills the pharmacy has anyway

more

___: actual price the pharmacy pays the drug manufacturer/wholesaler for the product

AAC

___: price the wholesaler charges the pharmacy. An overestimate.

AWP

____: maximum cost that the 3rd party will pay for a multisource drug.

MAC

___: price manufacturers charge wholesalers. An overestimate.

WAC

What is the advantage of NADAC over AWP as a drug cost estimate?

-NADAC is based on a ___ of what pharmacies actually pay for drugs, so it better reflects ____ acquisition cost

survey, true