Retrospective financial analysis of medication therapy management services from the pharmacy's perspective

Abstract

ObjectiveTo determine the net financial gain or loss for medication therapy management (MTM) services provided to patients by an independent community pharmacy during 16 months of operation. DesignRetrospective study. SettingIndependent community pharmacy in Iowa City, IA, from September 1, 2006, to December 31, 2007. PatientsPatients receiving MTM services during the specified period who had proper documentation of reimbursement for the services. InterventionMTM services were provided to the patient and documented by the pharmacist or student pharmacist. Main outcome measureNet financial gains or losses for providing MTM services. Sensitivity analyses included costs that might be incurred under various conditions of operation. Results103 initial and 88 follow-up MTM visits were conducted during a 16-month time period. The total cost for these services to the pharmacy was $11,191.72. Total revenue from these services was $11,195.00; therefore, the pharmacy experienced a net financial gain of $3.28. Sensitivity analyses were conducted, revealing the net gain/loss to the pharmacy if a student pharmacist was used and the net gain/loss if the pharmacist needed extra training to provide the services. Using a student pharmacist resulted in a net gain of $6,308.48, while extra training for the pharmacist resulted in a net loss of $1,602.72. ConclusionThe MTM service programs showed a positive financial gain after 16 months of operation, which should encourage pharmacists to incorporate these services into their practice.