..Information to Pharmacists
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    Your Monthly E-Magazine
    August, 2002

    Published by Computachem Services

    P.O Box 297.
    Alstonville. 2477
    NSW Australia

    Phone:
    61 2 66285138

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    ROLLO MANNING

    From a Rural/Remote/Isolated and Indigenous
    Pharmacy Perspective

    Who Gets Paid for What?

    "Time is money is often said" - but how many of us actually think about how productive we are to ourselves or our employers in terms of dollar return for effort put in.
    Pharmacists should examine their day and decide what has to change if they are to make a profit in the new age of "value add".


    The hourly rate of a technician to fix a washing machine is quoted as being "excessive" when looked at alongside what the pharmacist behind the dispensary bench is paid.
    But is it excessive and what is it meant to cover?

    It will cover for every hour worked on the job and charged another two hours to cover the preparation time needed and the after job time in recording and reporting.
    It then has to cover all "add ons" such as sick pay, holiday pay, long service provision, and superannuation and workers compensation.
    It also has to fund ongoing education, registration and other professional development tasks.
    And yes the washing machine mechanic does need education, it is a professional job.

    A simple $20 an hour can turn quickly to $60 and hour and probably as high as $80 with all factors built in. If the proprietor of the business was drawing a "salary" of $80,000 a year, this could be looked on as $40 an hour if 2,000 hours a year are worked.
    Multiply this by three (3) to cover on costs and $120 an hour could be the charge, with the formula being in line with industry practice.

    Now take the return for doing a Home Medication Review at $140 a time.
    How long should this take?
    Can each hour spent be justified to the pharmacy making the claim on the HIC for the "cost" of the accredited pharmacist to do the review?
    And if the Approved Pharmacy has no "accredited pharmacist" on board it will have to call in one to do the clinical assessment and write the report.

    So we area getting to a point of saying the review should not take much longer than an hour if the return is to be measured as being paid a reasonable fee for the task.
    Maybe the fee reflects the amount of time "expected" to be spent on the job.
    Is only an hour what the governing bodies want to be taken, and any more will mean they will be confronted with a claim for a higher fee.
    The "on costs" for the reviewer are certainly substantial when additional registration with the AACP is considered, and the Approved Pharmacy which has to meet the QCP guidelines.
    These do not come cheaply.
    There is a car to get to the "home" and computer costs if a software package is used in the process.

    However there are probably some pharmacists who are saying that they had the car and the computer, and the pharmacist doing the review did not have much else to do with their time apart from act as a PBS clerk putting prescription data into a database.

    Where to go? What to do?
    This is a dilemma!

    The fee is $140 but the time taken is at least three hours on the job, and that is not covering any overheads.
    Well try doing three in three hours rather than one!

    The pharmacist behind the computer entering data or counselling the patient maybe getting $30 an hour and how is that justified.
    Probably by virtue of the $4.60 fee for ready prepared items on the PBS.
    Twelve scripts an hour and that covers the cost easily, but the rest is not profit.
    It has to cover the on costs of the dispensary, the shop and the rest of the staff.
    And don't forget the dispensary probably accounts for 60% of the shop turnover, so don't expect the over the counter sales to prop up an unprofitable dispensary.

    This is more of a dilemma!

    The need is to work smarter and NOT harder.
    Get the tasks done that have the greatest return per hour, and delegate to others at a lesser hourly rate the tasks which they should be doing.
    It may be that the pre-registration graduate can do the review and the accredited person simply cast an eye over the end product and before signing off on it.

    There have to be more ways found unless pharmacists want to fall back into a situation of doing "something for nothing".

    So next time you the accredited employer pharmacist spend an hour looking over a Home Medication Review (HMR), ask yourself "am I really getting paid for this?".

    It may be that a crash course in fixing washing machines is in order!


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