Factors Affecting the Cost and Income of Pharmacies and to Improve Their Economy
-
Ahmad Gholami
,
Abolfazl Sadeghi
,
Mehrnoosh Emadi
,
maryam Kiani Bakyani
,
Mohsen Bayati
,
Bahram Aghaie
,
Khosro Keshavarz
Abstract
Background: Pharmacies are a prominent part of the health delivery system. Hence, valuable economic planning in designing and organizing pharmacies must be called. This study aimed to investigate the factors affecting pharmacies’ economic outcomes to strengthen their overall economy in Shiraz City, Iran. Methods: The type of study was descriptive-analytical and surveyed studies. All 343 active pharmacies in Shiraz were selected to be evaluated in this study. The data of all pharmacies were extracted with specifically designed questionnaires and analyzed (descriptive-analytical) with STATA software. Results: The monthly mean cost and revenue of one daily pharmacy were 6171045803 and 6577041019 Rials, respectively, in 2020. Also, these figures are 11544444668 and 15184116543 for 24-h pharmacies. Our results showed that all influential factors significantly impacted the pharmacies’ cost and revenue (P<0.01). Besides, the following factors like tax exemption, the exclusive sale of cosmetic products and medicines, increasing the drug’s margin, immediate refund from health insurance, technical right’s fee, and facilities significantly impacted pharmacies’ economic (P<0.01). Conclusion: The best ways to improve the pharmacy’s economy included tax exemption, the exclusive sale of cosmetic products, the release of exclusive and rare drugs increase of margin, rate of covered drugs with health insurances, faster refunding by the health insurances, specialty rights, and medicines packing. Also, it is necessary to pay attention to the indicators of the pharmacy’s economy and the factors affecting their income and expenses. This matter is even more pressing in developing countries, which are facing a severe shortage of resources.
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[19] Christensen DB, Farris KB. Pharmaceutical care in community pharmacies: Practice and research in the US. Ann Pharmacother. 2006; 40(7-8):1400-6. [DOI:10.1345/aph.1G545] [PMID]
[20] Brekke KR, Holmås TH, Straume OR. Margins and market shares: Pharmacy incentives for generic substitution. Eur Econ Rev. 2013;61:116-31.[DOI:10.1016/j.euroecorev.2013.02.005]
[21] Vogler S, Zimmermann N, Leopold C, de Joncheere K. Pharmaceutical policies in European countries in response to the global financial crisis. South Med Rev. 2011; 4(2):69-79. [DOI:10.5655/smr.v4i2.1004] [PMID] [PMCID]
[22] Imani A, Moghimi M, Golestani AJM, Jalilian H. Financial and economic criteria for evaluating the performance of pharmacies. Asian J Pharm Res Health Care. 2016; 8(Suppl 1):42-8. [DOI:10.18311/ajprhc/2016/7722]
[23] Thomsen L, Frokjaer B, Rossing C, Herborg H. Assessment of pharmacy systems in selected countries. Identification of literature and experiences [Internet]. 2011 [Updated 2011 December]. Available from: http://europharm.pbworks.com/w/file/fetch/53213512/Assessmentofpharmacysystems_WEB_samlet.pdf
[24] Carroll NV, Miederhoff PA, Waters LW. Profitability, third-party reimbursement, and access to community pharmacies. Clin Ther. 1996; 18(4):703-15. [DOI:10.1016/S0149-2918(96)80221-9]
[25] Pampel G. Factors affecting the profitability of pharmacies [PhD dissertation]. Johannesburg: University of the Witwatersrand; 2013. http://hdl.handle.net10539/14078
[2] Tourani S. [Study of performance index of public - educational hospitals: The context of Iran University of Medical Sciences (Persian)]. J Health Adm. 1997; 1(1):32-58. http://jha.iums.ac.ir/article-1-247-fa.html
[3] Roberts M, Hsiao W, Berman P, Reich M. Getting health reform right: A guide to improving performance and equity. New York: Oxford University Press; 2003. https://books.google.com/books?id=5m3ILLkfSj0C&dq
[4] Doucette WR, McDonough RP, Mormann MM, Vaschevici R, Urmie JM, Patterson BJ. Three-year financial analysis of pharmacy services at an independent community pharmacy. J Am Pharm Assoc (2003). 2012; 52(2):181-7. [DOI:10.1331/JAPhA.2012.11207] [PMID]
[5] Vermeulen LC, Rough SS, Thielke TS, Shane RR, Ivey MF, Woodward BW, et al. Strategic approach for improving the medication-use process in health systems: The high-performance pharmacy practice framework. Am J Health Syst Pharm. 2007; 64(16):1699-710. [DOI:10.2146/ajhp060558] [PMID]
[6] Bastani P, Mehralian G, Dinarvand R. Resource allocation and purchasing arrangements to improve accessibility of medicines: Evidence from Iran. J Res Pharm Pract. 2015; 4(1):9-17. [DOI:10.4103/2279-042X.150045] [PMID] [PMCID]
[7] Kleinke JD. The price of progress: Prescription drugs in the health care market. Health Aff (Millwood). 2001; 20(5):43-60. [DOI:10.1377/hlthaff.20.5.43] [PMID]
[8] Akortsu MA, Abor PA. Financing public healthcare institutions in Ghana. J Health Organ Manag. 2011; 25(2):128-41. [DOI:10.1108/14777261111134383] [PMID]
[9] Tordoff JM, Norris PT, Reith DM. “Price management” and its impact on hospital pharmaceutical expenditure and the availability of medicines in New Zealand hospitals. Value Health. 2008; 11(7):1214-26. [DOI:10.1111/j.1524-4733.2008.00353.x] [PMID]
[10] Quick JD, Laing RO, Ross-Degnan DG. Intervention research to promote clinically effective and economically efficient use of pharmaceuticals: The international network for rational use of drugs. J Clin Epidemiol. 1991; 45(Suppl 2):57-65. [DOI:10.1016/0895-4356(91)90114-O]
[11] IRDA. [Number of pharmacies. [Internet] (Persian)]. 2021. Available from: https://www.irda.ir/categories/list/number_pharmacies_country.
[12] Cederlof C, Tomson G. Private pharmacies and the health sector reform in developing countries-professional and commercial highlights. J Soc Adm Pharm. 1995; 12:101-11. https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=Private+pharmacies+and+the+health+sector+reform+in+developing+countries-professional+
and+commercial+highlights&btnG=
[13] National Association of Chain Drug Stores Foundation. The chain pharmacy industry profile. Alexandria: National Association of Chain Drug Stores Foundation; 2004. https://www.google.com/books/edition/The_Chain_Pharmacy_Industry_Profile/oKRqAAAAMAAJ?hl=en
[14] West D, Carper B, Hoey D, Claude E. 2004 NCPA-Pfizer digest. Alexandria: National Community Pharmacists Association, VA; 2004. https://scholar.google.com/scholar_lookup?hl=en&publication_year=2004&author=D+Westauthor=B+Carperauthor=D+Hoeyauthor=E+Claude&title=2004+NCPA-Pfizer+digest
[15] Beney J, Bero LA, Bond C. Expanding the roles of outpatient pharmacists: Effects on health services utilisation, costs, and patient outcomes. Cochrane Database Syst Rev. 2000; (3):CD000336. [DOI:10.1002/14651858.CD000336] [PMID]
[16] Taylor D. The pharmaceutical industry and the future of drug development. In: Hester RE, Harrison RM, editors. Pharmaceuticals in the Environment. London: Royal Society of Chemistry; 2015. pp.1-33. [DOI:10.1039/9781782622345-00001]
[17] Keshavarz K, Kebriaeezadeh A, Hashemi Meshkini A, Nikfar S, Mirian I, Khoonsari H. Financial perspective of private pharmacies in Tehran (Iran): Is it a lucrative business? Daru. 2012; 20(1):62.[DOI:10.1186/2008-2231-20-62] [PMID] [PMCID]
[18] Schumock GT, Stubbings J, Wiest MD, Li EC, Suda KJ, Matusiak LM, et al. National trends in prescription drug expenditures and projections for 2018. Am J Health Syst Pharm. 2018; 75(14):1023-38. [DOI:10.2146/ajhp180138] [PMID]
[19] Christensen DB, Farris KB. Pharmaceutical care in community pharmacies: Practice and research in the US. Ann Pharmacother. 2006; 40(7-8):1400-6. [DOI:10.1345/aph.1G545] [PMID]
[20] Brekke KR, Holmås TH, Straume OR. Margins and market shares: Pharmacy incentives for generic substitution. Eur Econ Rev. 2013;61:116-31.[DOI:10.1016/j.euroecorev.2013.02.005]
[21] Vogler S, Zimmermann N, Leopold C, de Joncheere K. Pharmaceutical policies in European countries in response to the global financial crisis. South Med Rev. 2011; 4(2):69-79. [DOI:10.5655/smr.v4i2.1004] [PMID] [PMCID]
[22] Imani A, Moghimi M, Golestani AJM, Jalilian H. Financial and economic criteria for evaluating the performance of pharmacies. Asian J Pharm Res Health Care. 2016; 8(Suppl 1):42-8. [DOI:10.18311/ajprhc/2016/7722]
[23] Thomsen L, Frokjaer B, Rossing C, Herborg H. Assessment of pharmacy systems in selected countries. Identification of literature and experiences [Internet]. 2011 [Updated 2011 December]. Available from: http://europharm.pbworks.com/w/file/fetch/53213512/Assessmentofpharmacysystems_WEB_samlet.pdf
[24] Carroll NV, Miederhoff PA, Waters LW. Profitability, third-party reimbursement, and access to community pharmacies. Clin Ther. 1996; 18(4):703-15. [DOI:10.1016/S0149-2918(96)80221-9]
[25] Pampel G. Factors affecting the profitability of pharmacies [PhD dissertation]. Johannesburg: University of the Witwatersrand; 2013. http://hdl.handle.net10539/14078
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| Issue | Vol 7 No 3/4 (2021) | |
| Section | Original Article(s) | |
| Keywords | ||
| Pharmacy Pharmacy economics Income Economics Costs Solutions | ||
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How to Cite
1.
Gholami A, Sadeghi A, Emadi M, Kiani Bakyani maryam, Bayati M, Aghaie B, Keshavarz K. Factors Affecting the Cost and Income of Pharmacies and to Improve Their Economy. JPPM. 2021;7(3/4):93-99.
