1.0 Executive Summary
Our clinic provides the medication therapy management service in a local region. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA 2003) becomes effective in January 1st, 2006. We enter the business at the right time when the pharmacist is acknowledged as a healthcare provider in counseling the patient. We are in the inception of this new opportunity. It offers rewards but not less challenge. According Omori et al, there are 32% of patients taking the wrong drugs and 18% are taking the wrong dose one month after hospital discharge. In this study, a higher number of errors are associated with patients being on more medications at discharge or having more medication changes during hospitalization. The demand is higher when people are not only taking drugs to cure the disease but also use vitamin to enrich their health. There are pharmacological effects between these drugs; therefore, a professional service like ours is in demand. Our target market is those middle class people with ages of 45 and above. At this age, their health starts to decline and is very sensitive to any drugs used.
2.0 SWOT Analysis
The SWOT analysis covers strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are generally internal attributes while opportunities and threats are generally external.
2.1 Strengths
1.
Experts on drugs: One of our two pharmacists did hospital residency. We know more details on drugs as well as its therapeutics. We are updating new drugs quickly; therefore, we have many efficient drug therapies in hand.
2.Less expensive: Our small group runs efficiently. A physician requires a much more salary.
3.Reimbursement: The health insurance plans limit their reimbursements in certain counseling services. By our instincts, we believe our target clients are willing to pay for our works.
2.2 Weaknesses
1.We are biased. The pharmacist hasn’t been recognized as a healthcare provider. He is usually in a role of verifying the medication dispensing.
2.We are not trained adequately about clinical aspects of therapeutics.
2.3 Opportunities
1.The MMA 2003 becomes effective in January 2006. The pharmacist is recognized as a healthcare provider. His service could be reimbursed. He cooperates with a patient and physicians in designing, implementing, and monitoring a therapeutic plan that will produce specific therapeutic outcomes for the patient.
2.The pharmacy schools are now in provision for their program to meet the new challenge.
2.4 Threats
1.Easy to enter the market: A service could be run with a small group and low investment cost. It makes much more new competitors enter the market.
2. Privacy Act: We couldn’t allow share the access to the patients’ health record from their physicians. However, a patient’s health database card is available in the future.
3.0 Target Market
3.1 Market
We target the middle class clients with the ages of 45 and above. The sick people are sure in need of our service. At these ages, people’s health begins to decline and need to care through using vitamin. They need our service when they prescribe a new drug or adjust their medication. It doesn’t happen quite often.
3.2 Competitive forces
1. Free consultants at the pharmacy: At the drug stores, they provide free consultant or charge a nominal fee when the patients fill their prescriptions. However, our clients only come here when their medication is under control.
2. Medical groups: they include the pharmacist in their staff. It is much more efficient in manage the patients’ medication.
3.3 Keys to success
1. Provide good service with low fee: We, pharmacists, constantly update our education to provide more efficient drug counseling.
2. Create networking: keep a good relation with physician or make alliance to have referrals.
4.0 Marking Mix
4.1 Product
We provide the medication therapy management service. These services are:
·Advice dosage
·Identifying potential and actual drug-related problems
·Resolving actual drug related problem
·Preventing potential drug-related problems
We contact their physicians to get approval of their new medication plan.
4.2 Price
Fee is from $300 to $1500 for the service depending on the complexity of their medication.
An estimate is provided ahead.
·Nutrition: $300
·Regular medication: $750
·Complex medication: $1500
A service begins with a medication counsel, then contact with their physicians to get approval for their new medication plan. We offer no extra charge for a length of three months to bring that medication to a more manageable state.
4.3 Promotion
Because the threat of new comers, we need to develop our reputation as well as attract more clients. We get connections with physicians through alliance or provide discount to their patients. We advertise at local newsletters and sponsor the local events.
4.4 Place
We serve the middle class, so it is convenient to locate in a shopping center.
4.5 Personnel
We are specialists on drugs.
·2 pharmacists: provide the counsel (partner or pay $150K/yr)
·1 Nurse: instructs and prices the service (Salary: $45K/yr). We acknowledge that this person needs to have clinical experience.
·1 Clerk: takes the appointment (Salary: $25K/yr)
5.0 Financials
5.1 Capital investments
We have a small staff and a low overhead cost.
·Desktop computers (4): $1,000 each
·Softwares for drug information (through licenses)
1.Epocrates: a complete guide to drugs, diseases, and lab diagnostics ($140 per year of subscription for each user)
2.Micromedex: a comprehensive tool for pharmacist in drug information ($7,500 per year of subscription for a network of 6 users)
5.2 Sale forecasts
·First two years: 150 subscriptions/3 months ---a Sale: $600,000 per year
·Later: 250 subscriptions/3 months --a Sale: $1,00,000 per year
5.3 Break even analysis
With a low overhead cost, we could make profit at the second year.
Best Practices:
Cantwell, Kathleen M. “Collaborationg for Successful Medication Therapy Management Programs.” Editorial. Am J Health-Syst Pharm 62 (March 15, 2005): p583.
Kuo, Grace M., Thomas E. Buckley, Dana S. Fitzsimmons, and Jeffrey R. Steinbauer. Collaborative Drug
Therapy Management Services and Reimbursement in a Family Medicine Clinic.
Am J Health-Sys Pharm 61 (Feb. 15, 2004): 343-354.
Reddan, Jennifer G., Amy Heck Sheehan, Jim Eskew, and George Elmes. Integration of a Medication
Management Infrastructure in a Large, Multihospital System. Am J Health-Sys Pharm 61
(Dec. 1, 2004): 2557-2561.
