A Study to Determine the Feasibility of Establishing a Tri-Service Mail Order Pharmacy System
Abstract
Since pressure to contain health care costs is increasing, dispensing pharmaceuticals by mail is becoming an attractive alternative. Mail service pharmacy is a form of pharmacy practice that dispenses medications through the mail and delivery services. Ingredient costs of prescriptions have been increasing at almost twice the rate of the Consumer Price Index over the past decade. The cost of prescription drugs has also increased more than hospitalization or physician fees during this time. In the civilian community many employer-sponsored mail service drug programs have become increasingly popular in recent years. This research examines the feasibility of establishing a Tri-service mail order pharmacy system for out-patient refill maintenance prescription drugs. Four models are assessed to determine the consequences of mail order dispensing on the military prescription refill system. The study identifies the major cost components associated with pharmaceutical delivery of each of these models (ingredient costs, dispensing costs or cost of labor, equipment, facility and mail). The four models analyzed are: (A) the baseline or current cost model; (B) the centralized Medical Treatment Facility (MTF) mail service model: (C) the decentralized MTF mail service model; and (D) the civilian management contract mail service model. It was determined that Model D would be an appropriate and cost-saving alternative to the present system.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1990
- Accession Number
- ADA237900
Entities
People
- Mary L. Gabbard
Organizations
- Academy of Health Sciences