Financial Impacts and Constraints Paper

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Financial Impacts and Constraints Paper

The Effect of Pharmacy on Operation Management
A health care facility needs to monitor the processes and operations of its pharmacy, since it is the major profit producer. The pharmacy is required to maintain minimal errors, excellent customer service, and high efficiency, while returning significant profits. Pharmacies are considering a profit center for the hospital and have a direct effect on the hospitals bottom line.

Since pharmacies are a major income provider for health care facilities that run at low profit levels, pharmacies need to be monitored to ensure that they are running efficiently and striving to increase profits continually. Financial Factors Determining Pharmacy Closing

The pharmacy has several key indicators whether or not it is performing at a level beneficial to the health care facility. Monitoring cycle times of services is an indicator of efficiency of processes and procedures. The pharmacy is constantly faced with the task of decreasing the cycle time. Cost per dose is to be considered as well. The lower the cost to fill a prescription can be tracked, this will show if labor costs are being reduced and maximizing profits. Percent of errors are also checking to determine accuracy of the order process. A pharmacy has a responsibility to ensure that every order is filled correctly as an incorrect prescription could cause a severe illness or even death. As inventory is monitored, ensuring that enough medications are on hand, overstocks and over orders can be spotted. By knowing what inventory is in overstock, ordering can be adjusted and inventory costs can be reduced.

Financial Reports Used In the Decision Process
The financial reports that help with the decision making process for a pharmacy is operating future include the income statement and statement of cash flows. These two reports give an overall view of the financial stability to the...
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