Common Pharmacy Terminology - CPhT 2025

Preferred Provider Organization (PPO)

A type of health plan that contracts with medical providers to create a network of participating providers. Coverage is provided to participants through the network of healthcare providers, such as hospitals and physicians

P.R.N/p.r.n Order

An order that may be filled or administered upon patient/prescriber request

Maximum Allowable Cost (MAC)

The maximum amount a pharmacy benefits manager (PBM) will reimburse for a specific generic drug available from multiple manufacturers and sold at different prices

Proper Medication Storage

The correct temperature range, light sensitivity, and restrictive access for a specific drug

Roman Numerals

A numeral system originating in Rome where letters from the Latin alphabet are used to express numerical values

National Drug Code (NDC) Number

A 10- or 11-digit number assigned to drug products that represents the manufacturer/labeler, product, and package size

Medication Categories

Legend (requires a prescription) and OTC (over-the-counter)

Drug Class

A group of medications and other compounds that have similar chemical structures, the same mechanism of action (i.e., binding to the same biological target), similar modes of action, and/or are used to treat the similar diseases

Parenteral Administration

The delivery of a medication that bypasses the digestive tract. Parenteral routes of administration include subcutaneous, intravenous, and transdermal

Drug Interaction

When a medication's effect on the body is changed by another drug, medical condition, food, or herb

Warning Labels

Labels that identify specific warnings, foods or medications to avoid, potential side effects, and other cautionary interactions

Dispense As Written (DAW)

A method prescribers use to indicate the brand name of a product, not the generic equivalent, must be dispensed

Adverse Drug Event (ADE)

Injury or harm that occurs as a result of exposure to a medication

Unit Dose Package

A package that contains the amount of drug required for a single dose. Often medications in institutional settings are unit dosed

Off-Label Use

A practice of prescribing a medication for a different purpose than what the FDA approved

Par Level

The minimum amount of inventory needed on hand to meet known demand and a small surplus in case of unexpected demand

Aseptic Technique

The process of manipulating sterile products to prevent the introduction of pathogens

Prior Authorization

A requirement by health plans for patients to obtain approval of a health care service or medication before the care is provided. This allows the plan to evaluate whether care is medically necessary and otherwise covered

Electronic Medical Record (EMR)

A computerized patient medical record

High-alert/risk medications

Medications that have a heightened risk of causing significant harm if used in error

Pharmacy Benefits Manager (PBM)

A third-party company that administers prescription drug programs

Medication Nonadherence

When a patient does not take a prescribed medication or follow the prescriber's instructions for taking the medication

Adverse Drug Reaction (ADR)

Therapeutic Window

The range of drug dosages that can treat disease effectively without having toxic effects

Signa (SIG)

The part of the prescription that provides the directions for the patient to follow when taking the medication

Systemic Effect

The distribution of a medication throughout the body by absorption into the bloodstream

Deductible

A set amount that must be paid by the patient for each benefit period prior to the insurer covering additional expenses

Brand Name or Proprietary Drug

A drug sold by a drug company under a specific name or trademark and that is protected by a patent

Generic Medication

A medication that contains the same active ingredient(s) as the brand name product and delivers the same amount of medication to the body for a similar medicinal effect

ASAP Order

A hospital order that needs to be processed as soon as possible

Computerized Provider Order Entry (CPOE)

A process that requires providers to enter and send treatment instructions via computer application rather than paper, fax, or telephone. Benefits of CPOE include reduction of medication errors and improvement of patient safety

Beyond-Use Date (BUD)

The date assigned to a compounded or repackaged medication to indicate when to discard to product. Beyond-use date considerations include contamination risk and storage conditions

Look-alike/Sound-alike (LASA) Medications

Medication names that look alike when written or sound alike when spoken

Boxed Warning

Information on a legend drug label calling attention to serious or life-threatening risks

Formulary

A list of medications that have been selected (e.g., by a hospital or insurance company) based on therapeutic and cost factors

Co-Pay

A portion of the prescription price the patient is required to pay

Medication Error

Any preventable event that may cause or lead to inappropriate medication use or patient harm while the medication is in the control of the healthcare professional, patient, or consumer

National Provider Identifier (NPI)

A unique 10-digit identification number for covered health care providers; typically used for billing purposes

Dual Co-Pay

Co-pays that have two prices, one for generic versions and one for brand name versions

Tall Man Lettering (TML)

A technique that uses uppercase lettering to help differentiate look-alike drug names. The FDA and the ISMP both maintain lists of drugs with recommended Tall Man lettering

Drug Utilization Review (DUR) Warning

An alert or message generated by pharmacy or insurance company software notifying pharmacy personnel of a potential drug safety or payment concern

Protected Health Information (PHI)

Any personal information that could be used to identify an individual to their health history

Days Supply

How many days a prescription will last if the patient uses it as directed

MedWatch

The FDA's medical product safety reporting program for health professionals, patients and consumers; also called the FDA Safety Information and Adverse Event Reporting Program

Narrow Therapeutic Index (NTI) Drug

A drug where small differences in dose or blood concentration may lead to serious therapeutic failures and/or adverse drug reactions

Enteral Route of Administration (ROA)

A ROA to any organ in the alimentary tract

Pharmacy Insurance Language Essentails

BIN: A number that identifies an insurance provider

PCN: A secondary number for routing insurance claims

GRP: A number that identifies the employer through which the insurance is provided

Health care providers and pharmacies use these numbers to file insurance claims for medications and services

Standing Order

An order that may be filled or administered at regularly scheduled intervals

Expiration Date

A date that reflects the maximum time the product is guaranteed to remain stable if stored properly. If an expiration date is listed with only month and year, the expiration date should be interpreted as the last day of the assigned month

Institute for Safe Medication Practices (ISMP)

A nonprofit organization that provides impartial, timely, and accurate drug safety information to the medical community

Vaccine Adverse Event Reporting System (VAERS)

A vaccine adverse event reporting system co-managed by the CDC and the FDA. VAERS is used as a national early warning system to detect possible safety problems with licensed vaccines

70% isopropyl alcohol

Common cleaning agent

Therapeutic equivalent

A generic drug product that contains identical amounts of the same active ingredient(s) as the brand name product and is available in the same dosage form, route of administration, and strength

Medication Therapy Management (MTM)

A distinct service or group of services that optimize therapeutic outcomes for individual patients

STAT order

An order for medication to be administered immediately

Contraindication

Situation in which a drug should absolutely not be used because the risk clearly outweighs the benefit; reasons include allergies, diseases, conditions, and concurrent medications

Route of Administration

The way by which a drug is taken into the body. Common routes of administration include oral, topical, parenteral

Drug Utilization Review (DUR)

An ongoing examination of the prescribing, dispensing, and use of a medication specific to a patient's condition(s)