Exhaustive Study Guide on Management in Pharmacy School
Why Study Management in Pharmacy School?
Presenter: Katie Getchell, PharmD, RPh, MBA in Healthcare Management
Key Areas of Focus in Pharmacy Management
Patient Care
Physical Environment
Operations and Policies
Continuing Professional Development
Transforming the Workforce
Partnerships and Relationships
Pharmacist Practice Management Ecosystem
Key Elements of Management:
Marketing and Communications
Strategic Implementation
Ongoing Continuous Quality Assurance and Improvement Process
Technology and Documentation
Finance
Infrastructure
Managing Human Resources
Course Review and Logistics
PPW 378
Update on exam times
Justification for the course choice "Why me?"
Importance of Teaching Management in Pharmacy
Alignment with ACPE Standards 2025:
Emphasis on Social/Administrative/Behavioral Sciences Practice Management
Application of management principles to improve patient care and service delivery across various practice settings
Relevant for NAPLEX examination preparation
Are All Pharmacists Managers?
Poll: YES vs. NO
Definition of a pharmacist's management role included as:
Managing technicians and staff
Drug delivery and distribution
Medication safety and budgets
Medication therapy management
The Managerial Role of Pharmacists
Successful Management Characteristics:
Decreases stress
Increases job satisfaction
Minimizes career burnout
Reduces substance abuse risks
Chapter 1: Management in Medication Therapy Management (MTM)
Objectives of MTM
Changes in pharmacist roles since early 1900s
Necessity of management skills in pharmacy
Key domains of pharmacy care
Myths about pharmacy as a business
Need for management perspective in enhancing drug therapy outcomes
Overview of managerial sciences used
Motivations for Choosing Pharmacy
Reasons might include:
Science interest
Healthcare contribution
Desire to help others
Salary considerations
Other motivations
Evolution of Pharmacy Practice
Historical Shifts:
Early 20th Century:
Education through apprenticeships
Role focused on compounding and business ownership
Prescription requirement non-existent
Not recognized as healthcare professionals
Middle 20th Century (1940-1960):
Role of pharmacists diminished due to prefabrication of drugs
Introduction of prescription drug categories (Durham-Humphrey Amendment)
APhA Code of Ethics restrictions on patient communication
Transition from business owners to employees
Late 20th Century:
Millis Commission (1975) reported inadequacies in management training
Shift to therapeutic advisor roles with a focus on clinical pharmacy
Education advancements to 6-year Doctor of Pharmacy degree
New Millennium:
Rise of different pharmacy models: chain, mail-order, online pharmacies
Significant implications for pharmacy management practices
Pharmaceutical Care Introduction
Developed in the 1990s as a practice philosophy:
Focuses on the management of drug therapies
Engages pharmacists in public health stewardship
Key Pharmaceutical Care Practice Domains (Table 1-1)
I. Risk Management
Develop data collection systems
Conduct drug utilization reviews
Document therapeutic activities and interventions
Manage special populations (e.g., children, elderly)
Report adverse drug events to authorities
Triage patient needs appropriately;
Stay updated on drug-related issues
II. Patient-Centered Care Delivery
Advocate for patients regarding barriers to drug therapy
Assist in altering medication orders to promote adherence
Counsel patients on medications
Foster relationships with patients
Maintain communication with patients regarding their medications
III. Disease and Medication Therapy Management
Educate patients about managing their conditions and therapies
Monitor pharmacotherapy outcomes
Maintain necessary product inventories for patients
Provide support resources to patients
IV. Pharmacy Care Services Marketing
Network with local prescribers
Engage in professional associations that support pharmaceutical care
Facilitate private consultation spaces for patients
Utilize software that improves care practices
V. Business Management
Use technicians to maximize pharmacy efficiency
Identify billing opportunities for pharmacist services
Medication Therapy Management (MTM)
Definition: A comprehensive method to:
Enhance adherence
Educate populations
Manage disease and wellness programs
Medicare Prescription Drug, Improvement, and Modernization Act of 2003, mandates reimbursement for MTM
Myths about Pharmacy in Business
Pharmacy practice conflicts with ethical business practices
Business lacks ethical guidance
Profits are prioritized over care quality
The ideal pharmacist is purely clinical
Factors Influencing Pharmacy Services (Table 1-2)
1. Patient Demographics
Aging population impact
Female decision-makers
Ethnic diversity
2. Attitudes and Beliefs
Beliefs about medications and health systems
Trust in healthcare delivery systems
Role of direct-to-consumer drug marketing
3. Third-party Payers
Complexities among payers
Formularies restrictions
Patient access limits
4. Competitive Markets
Lower profit margins
Variety of competing service providers
5. Technology
Importance of dispensing software and automation tech
Managerial Sciences Overview (Table 1-3)
Accounting
Financial records and statements
Cash flow management
Profitability analysis
Finance
Identifying financial needs
Budget development and asset management
Economics
Optimal labor and capital balancing
Output optimization decisions
Human Resources Management
Job analyses and employee motivation
Performance appraisals and organizational rewards
Marketing
Competitive advantages and target market strategies
Operations Management
Workflow design and inventory control
Chapter 1 Summary
Good business practices complement good patient care
Effective pharmacists possess managerial skills
Awareness of internal and external forces impacting pharmacy
Managerial sciences are crucial in modern pharmacy
Chapter 2: Management Functions
Objectives
Define management and management roles
Compare management with leadership
Examine classical vs. modern management theories
Understand the management process
Apply management processes in professional activities
What is Management?
Management is the process of utilizing resources to achieve goals efficiently
Management skills differ from leadership, which involves guiding and inspiring others
Defining a Manager
A manager is:
An individual performing management tasks
A person with administrative authority
Anyone focused on achieving specific goals
Leadership vs. Management
Leadership distinct from management; it entails inspiring others
Not every manager is necessarily a leader, although they may possess leadership skills
Classical Management Theory (Fayol) (Table 2-1)
Fayol’s 5 Management Functions
Forecasting and planning
Organizing
Commanding
Coordinating
Controlling
Fayol’s 14 Principles for Organizational Efficacy
Division of labor
Responsibility with authority
Discipline enforcement
Unity of command
Direction alignment with mission statement
General interest over personal interests
Market-compliant employee remuneration
Centralization principles
Line of authority defined
Orderly organization
Fairness in treatment
Job stability
Initiative promotion
Teamwork and harmony (esprit de corps)
The Management Process
Figure 2-1: Management Process Overview
Levels of management: Individual, Interpersonal, Organizational
Resources managed include money, people, time, materials, and information
Figure 2-2: Management Activities Cycle
Cycles include evaluating, planning, leading, organizing
Modern Management Views
Emphasis on knowledge workers and their adaptation to varied managerial tasks
Focus on energizing, empowering, supporting, and communicating with staff