Competency Area R3: Finance and Budgeting

Members of the Section of Pharmacy Practice Leaders (SPPL) identified these resources that may be incorporated into the program content in order to develop a well-rounded Health-System Pharmacy Administration and Leadership (HSPAL) resident. Below is an optional list of educational resources for residents to reference to enhance their learning experiences and is in no way a requirement for completion of their residency program or necessary for program accreditation.

• Goal R3.1: Utilize productivity measurement in operational decision-making.

  • Objective R3.1.1: (Analyzing) When given a productivity report, draw appropriate conclusions.
    • Rough SS, McDaniel M, Rinehart JR. Effective use of workload and productivity monitoring tools in health-system pharmacy, part 1. Am J Health-Syst Pharm. 2010; 67:300-11.
    • Rough SS, McDaniel M, Rinehart JR. Effective use of workload and productivity monitoring tools in health-system pharmacy, part 2. Am J Health-Syst Pharm. 2010; 67:380-8.
      
      

• Goal R3.2: Monitor and manage operating and capital budgets.

  • Objective R3.2.1: (Analyzing) Participates in the operating budget process for a selected aspect of the pharmacy’s activities.
    • Haas, Derek A.,Jellinek, Michael S. and Robert S. Kaplan. Hospital Budget Systems Are Holding Back Innovation. Financial Management. Harvard Business Publishing. 29 March 2018.
  • Objective R3.2.2: (Analyzing) Participate in a capital budget process for a selected aspect of the pharmacy’s activities.
    • Gagnon JP,  Rodowskas Jr. CA. Capital Budgeting Techniques in the Hospital: Problems and Potential. Am J Health-System Pharm. 1971; 28: 686–91.
  • Objective R3.2.3: (Analyzing) Participate in the monitoring of financial performance and explanation of variances.
    • National Trends in Prescription Drug Expenditures and Projections for 2019 (ASHP webinar)
      
      

• Goal R3.3: Demonstrate understanding of the pharmacy revenue cycle and the implications for pharmacy.

  • Objective R3.3.1: (Understanding) Explain the pharmacy revenue cycle and its impact on pharmacy practice.
    • O’Neal BC et al. Optimizing the revenue cycle to promote growth of the pharmacy enterprise. Am J Health-Syst Pharm. 2018; 75: 853-5.
    • Jarrett AT, Patel KR, Babbitt RM. Understanding pharmacy department billing and the charge master. Am J Health-Syst Pharm. 2008; 65: 2213-4.
      
      

• Goal R3.4: Develop strategies to ensure access to medication and implement cost reduction strategies.

  • Objective R3.4.1: (Understanding) Demonstrates understanding of societal forces that influence rising costs for medications and the provision of pharmacy services.
    • American Society of Health-System Pharmacists. ASHP guidelines on medication cost management strategies for hospitals and health systems. Am J Health-Syst Pharm. 2008; 65:1368–84.
    • Schumock GT, Stubbings J, Hoffman JH, et al. National trends in prescription drug expenditures and projections for 2019. Am J Health-Syst Pharm. 2019; 76: 1105–21.
  • Objective R3.4.2: (Understanding) Review the process of negotiating contracts with vendors.
    • McAllister JC. Bid solicitation and contract negotiation. Am J Health-Syst Pharm. 1984; 6:1164–72.
    • American Society of Health-System Pharmacists. ASHP guidelines on outsourcing sterile compounding services. Am J Health-Syst Pharm. 2015; 72:1664-75.
    • American Society of Health-System Pharmacists. ASHP guidelines on medication cost management strategies for hospitals and health systems. Am J Health-Syst Pharm. 2008; 65:1368–84.
    • American Society of Hospital Pharmacists. ASHP guidelines for selecting pharmaceutical manufacturers and suppliers. Am J Hosp Pharm. 1991; 48:523–4.
  • Objective R3.4.3: (Creating) Design and implement a cost reduction or inventory management initiative.
    • Knoer S. Stewardship of the pharmacy enterprise. Am J Hosp Pharm. 2014; 71:1204-9.
    • American Society of Health-System Pharmacists. ASHP guidelines on managing drug product shortages. Am J Health-Syst Pharm. 2018; 75:1742-50.
    • American Society of Health-System Pharmacists. ASHP guidelines on medication cost management strategies for hospitals and health systems. Am J Health-Syst Pharm. 2008; 65:1368–84.