Diversification strategies for hospital pharmacies.

Area of Science:

• Health Services Research
• Hospital Pharmacy Administration
• Healthcare Management

Background:

• Hospital pharmacy departments traditionally focus on dispensing medications.
• Increasing financial pressures necessitate exploring alternative revenue streams.
• Diversification can enhance financial sustainability and service offerings.

Purpose of the Study:

• To describe revenue-generating diversification strategies employed by a large university hospital pharmacy department.
• To assess the financial impact of these diversified services.
• To highlight potential models for other hospital pharmacy departments.

Main Methods:

• The study describes various diversification initiatives undertaken by the pharmacy department.
• Revenue projections and net income figures are presented for each initiative.
• Examples include training programs, outpatient services, and contract services.

Main Results:

• Training medical representatives projected to yield $85,000 net income.
• Outpatient pharmacy, i.v. solutions for home care, and planned durable medical equipment (DME) business expected to generate $165,000 net profit.
• Contract pharmaceutical services provided to another hospital.
• Total projected net income from diversification exceeds $250,000 for FY 1983-84.

Conclusions:

• Diversification strategies can significantly increase revenue for hospital pharmacy departments.
• Multiple avenues, including educational programs and specialized services, contribute to financial growth.
• These models offer a framework for enhancing pharmacy department financial performance and expanding service scope.