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Cost justifying a pharmacy residency program.

P J Schneider, D M Boman, J A Bourret

    American Journal of Hospital Pharmacy
    |September 1, 1982
    PubMed
    Summary
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    Pharmacy residents provide significant financial value to hospitals. A cost-benefit analysis showed resident contributions exceeded program expenses by 30%, demonstrating the financial viability of pharmacy residency training.

    Area of Science:

    • Pharmacy Practice
    • Healthcare Administration
    • Health Economics

    Background:

    • Pharmacy residency programs are essential for advanced training.
    • Hospitals invest resources in these programs.
    • Quantifying the financial return on investment for residency programs is crucial for justification.

    Purpose of the Study:

    • To perform a cost-benefit analysis of a pharmacy residency training program.
    • To determine if the financial contributions of pharmacy residents justify the program's costs.

    Main Methods:

    • Quantified financial contributions of residents (administrative support, projects, scheduling, education coordination).
    • Calculated program costs (salaries, benefits, training expenses).
    • Performed an output value analysis comparing contributions to costs.

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    Main Results:

    • Pharmacy residents' financial contributions exceeded program costs.
    • The ratio of contributions to costs was 1.3 to 1, indicating a positive return on investment.

    Conclusions:

    • Pharmacy residency training programs are financially beneficial to hospitals.
    • The quantifiable contributions of residents provide a strong justification for program investment.