Pharmacy Practice Management Exam 2

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  1. Direct costs
    Not incurred if the activity were not performed
  2. Indirect costs
    Incurred even if the activity were not performed
  3. Internal standards
    • Compare the pharmacy's COD to that calculated in previous reporting periods
    • Trend analysis
  4. External standards
    • Compare the pharmacy's COD to that of other, similar pharmacies
    • Benchmarking
  5. Acquisition cost
    The price the pharmacy actually pays for the product (after discounts)
  6. Procurement costs
    Costs of checking inventory, placing orders, receiving and stocking, and paying invoices
  7. Carrying costs
    Storage, handling, insurance and the opportunity costs of capital
  8. Out-of-stock costs
    Frustration, inconvenience, lost sales, and lost customers
  9. Visual
    Designated person monitors shelves and ordres when needed
  10. Periodic
    Physical count is done at predetermined intervals
  11. Perpetual
    Continuous, monitoring, often via point-of-sale technology with automated ordering when on-hand quantities drop below pre-defined minimum levels
  12. Cost-consequence Analysis
    No direct calculations or comparison between measured costs and measured outcomes
  13. Cost-of-Illness Analysis
    Attempt to quantify the full economic burden of a particular disease, illness or condition
  14. Cost-effectiveness Analysis
    Measures costs in dollars and outcomes in natural health units that indicate an improvement in health
  15. Efficacy
    • Outcomes of a tx under ideal conditions
    • This is what the FDA requires for NDA approval
  16. Effectiveness
    • Outcomes under real-world conditions
    • This is what we are usually interested in assessing
  17. Costs
    Value of resource inputs incurred to create specified outputs or outcomes
  18. Opportunity costs
    Value forgone as a result of dedicating resources in a partciular way
  19. Price
    The amount that is charged to a payer by a producer or provider
  20. Allowable Charge/Reimbursed
    The amount actually paid to the producer or provider after "adjustments by the payer
  21. Perspective
    Specified whose costs are relevant to the analysis
  22. Time-based Cost Adjustments
    Updating past costs to present values to account for inflation
  23. Cost Utility Analysis
    Measures outcomes uring patient preferences
  24. Quality-adjusted life year
    Incorporates both quality and quantity of life
  25. Cost Benefit Analysis
    Compares both costs and outcomes in monetary units
  26. Human Capital
    Assumes that the value of health benefits equals the economic productivity of affected persons
  27. Willingness-to-pay
    • Contingent valuation
    • The value of health benefits equals how much people are willing to pay to reduce the chance of an adverse health outcome
  28. Net benefit
    Difference between total costs and benefits
  29. Benefit-to-Cost Ratio
    compares the relative values of each
  30. Internal Rate of Return
    Compares the present value of benefits with the present value of costs and determines the rate of return required to make benefits and costs equal then comapres this rate to a "hurdle rate"
  31. Responsiveness
    Sensitivity of an instrument to changes in health status and clinical relevance of small changes
  32. Reliability
  33. Validity
    Accuracy of measurement
Card Set
Pharmacy Practice Management Exam 2
Pharmacy Practice Management Exam 2
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