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Digital Home-Monitoring of Patients after Kidney Transplantation: The MACCS Platform

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Published on: April 12, 2021

Is there a successful business case for telepharmacy?

Shamima Khan¹, Herbert W Snyder, Ann M Rathke

¹College of Pharmacy, Nursing, and Allied Sciences, North Dakota State University, Fargo, North Dakota 58105-5055, USA.

Telemedicine Journal and E-Health : the Official Journal of the American Telemedicine Association

|June 24, 2008

Summary

Financial analysis of a Single Business Unit (SBU) including a central pharmacy and two telepharmacies showed positive growth. Profitability increased, nearing median sales, indicating success with sufficient patient volume and efficient pharmacist time.

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Area of Science:

Health Economics
Pharmacy Management
Business Analytics

Background:

Assessing the financial viability of integrated pharmacy models is crucial for operational sustainability.
Understanding the financial performance of a Single Business Unit (SBU) with multiple retail and telepharmacy locations is essential for strategic planning.

Purpose of the Study:

To evaluate the financial operations of a Single Business Unit (SBU) comprising one central retail pharmacy and two remote telepharmacies.
To analyze key financial metrics against industry benchmarks over a three-year period (2002-2004).

Main Methods:

Conducted a financial analysis using income statements and balance sheets from 2002 to 2004.
Compared SBU financial data, including gross profit and net operating income, to industry averages.
Evaluated inventory turnover ratios in relation to pharmaceutical costs and obsolescence risks.

Main Results:

Gross profit demonstrated a significant increase, rising from $260,093 in 2002 to $502,262 in 2004.
Net operating income percentage improved from below industry average in prior years to above average in 2004.
Inventory turnover ratio, while remaining below average, showed an upward trend, indicating improving efficiency.

Conclusions:

The SBU exhibits a positive financial trend, approaching median sales benchmarks.
Profitability in multi-location pharmacy settings is achievable with adequate patient volume and optimized pharmacist utilization.
Continued monitoring of inventory turnover is recommended due to the financial implications of pharmaceutical obsolescence.