question

just-in-time ordering

answer

strategy of ordering a product before it is used to minimize funds for long periods and reduces cost with inventory management. -prevents overstock and out of stock conditions

question

PAR (periodic automatic replacement) value

answer

-amt of drug automatically reordered -when a drug falls below predetermined qty it is automatically reordered

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minimum and maximum

answer

-predetermined # that states min and max amt of meds kept on a shelf -smaller range, the more accurate the qty to be stocked -based on historical data for an institution and current trends

question

ABC analysis

answer

-method used to ID and define inventory items based on usage -products ranked based on their purchase history and dollar amt of total annual costs -focuses efforts based on products that will have the greatest inventory turnover rate

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ABC item rank A

answer

-total % annual costs is 80% -% of products is 20%

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ABC item rank B

answer

-total % annual costs is 15% -% of products is 15%

question

ABC item rank C

answer

-total % annual costs is 5% -% of products is 65%

question

80/20 rule

answer

-80% of pharm drugs are derived from 20% of pharmaceuticals carried -focuses on inventory control of top 20% items carried

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inventory turnover rate

answer

-found by cost of goods sold over the avg inventory value -the greater the # indicates better utilization of financial resource of an institution -ratio that measures # of times on avg the inventory sold during the period

question

economic order qty

answer

the combo of order costs and inventory costs are taken into consideration

question

80/20 report (velocity report)

answer

-detailed summary of purchasing history based on 80/20 rule -designed meds that acct for 80% of drug costs for that period

question

compliance report

answer

report summarizing all items not purchased on bid

question

initial type of inventory

answer

inventory of all controlled substances before opening new pharmacy or when a change in pharmacist in charge

question

biennial type of inventory

answer

-inventory required by DEA of all controlled substances every 2 yrs -II drugs must be accurately counted, III, IV, and V drugs can be estimated

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perpetual type of inventory

answer

-reflects exactly what is on hand at a particular time -often maintained on II meds

question

physical type of inventory

answer

-inventory on a basis (usually yearly) to determine what is on hand at particular time and value of inventory based on cost of the items

question

lot #

answer

-assigned by manufacturers to ID batch of meds -used in drug recalls

question

national drug code (NDC) #'s

answer

-every drug given a 11 digit # -first five #'s ID manufacturer -next 4 #'s ID drug -last 2 #'s represent package size and packaging -when med is reformulated it's given a new NDC # and also when manufacturers purchase another drug company

question

expiration dates

answer

-assigned by manufacturer and ensure amt of time a product can be pure safe and effective -it's the last day of a particular month of a given year -used in drug recalls

question

BUD (beyond-use dates)

answer

-assigned by pharmacy when repacking or compounding a med -6 month method is 6 months of /4 of manufacturers expiration date -1 year method is max of 1 year as long as it does not exceed expiration date of manufacturer -BUD for sterile compounded meds don't follow this method b/c of USP 797

question

open formulary

answer

-all pharmaceutical products carried -multiple tier pricing can be used with a distinct price for branded, generic, lifestyle and drugs not covered

question

closed formulary

answer

-limited # of products of each drug classification covered

question

restricted formulary

answer

-selective, limited and partially closed formulary where some nonformulary meds avail -hybrid of open and closed formularies

question

formularies

answer

-each managed care org determines own formulary -updated periodically to ensure med avail is appropriate -defines policies, procedures and guidelines by med staff regarding med usage -established by P&T committee -list of drugs approved for use in institution OR whose cost will be reimbursed by 3rd party carrier to pharmacy

question

procurement considerations

answer

-includes drug selection, source selection, cost analysis, group purchasing, prime vendor relationships, purchasing procedures, record keeping and receiving control -drug selection includes a cost analysis to examine benefit vs. cost of med -source selection is deciding whether generic or brand name drug to be purchased by examining reputation of manufacturer and drug analysis and is given by ASHP (american society of health-system pharmacists) -cost analysis is examining storage and acquisition costs and cost of time to prepare or package drug -group purchasing organizations let hospitals purchase meds at lower costs based on volume, ability to purchase contract items is known as a "bid" or "contract compliance" -primary or prime vendor is one source, a wholesaler, from which as many products as possible are purchased and many considerations into choosing primary vendor -records need to be maintained for purchase orders

question

purchasing from drug manufacturer

answer

-let pharmacist purchase in bulk -wholesalers may not always stock specific meds b/c of demand or price

question

purchase from wholesalers

answer

-they stock meds from all manufacturers -purchase when they need meds now, not in advance -can do emergency deliveries, automated ordering and purchasing systems

question

just in time ordering

answer

-ordering a product before running out, shipped immediately like next business day -way to keep inventory low and max profits

question

point of sale

answer

item is deducted from inventory as dispensed and automatically reordered

question

purchase order

answer

-form used to order drugs and supplies from wholesaler -includes name and address of institution, shipping address, date of order, vendors name and address, purchase order #, ordering departments name and locale, expected delivery date, shipping terms, acct name, description of items, qty of items, unit price, extended price, total price, buyers name and phone #

question

receiving processes

answer

-verify incoming merchandise against invoice -hazardous substances handled by trained ppl with PPE on -inventory damaged or out of date will be noted on packing slip and vendor contacted -merchandise with special storage should be verified and put under those conditions -sign and date invoice or packing slip -forward documentation to accts payable -put merchandise on shelf and rotate by putting shortest dating product in front -retain paperwork as outlined by CSA and OSHA or policies and procedures manual

question

drug recall

answer

-initiated by manufacturer (voluntary) or by FDA -causes are drug mislabeling, contamination, lack of good manufacturing processes or lack of potency

question

Recalled med process

answer

-pharmacy notified by manufacturer or wholesaler by email, mail or fax and reason of recall with manufacturer name, lot #, expiration date, drug name and strength, and package size -pharmacy finds if recalled med is in stock -pharmacy contacts patients who given the med that should be returned for refund or substitution -pharmacy follows disposition directions from manufacturer -recalled med given to manufacturer for refund -med recalled is reorder and notify physician of recall and ask if he wants to change med order

question

expired meds

answer

-policies established by each pharmacy of process of pulling meds that expire within given period -these meds kept away from in date meds and system must be in place to check for expired meds -med should never be given to patient if will expire before use or expired already -multidose meds can't be redispensed to another patient, unit dose meds can be redispensed to other ppl -cytotoxic meds destroyed with biohazardous waste goods -partially used bottles and compounded drugs not returnable to manufacturer -controlled substances can only be returned by institutions with a DEA #, like long term facilities don't have DEA # -DEA must be notified at least 2 weeks before destruction of substance and issue Form 41 for expired and copy of form kept for 2 years after destruction

question

minimize pharmacy waste

answer

-maximize use of opened chemotherapy vials -label drugs for home use -prime and flush IV lines with saline solu -examine size of container relative to use -replace prepackaged unit dose liquids with patient specific oral syringes -eliminate generation of controlled substances that are also hazardous waste -use hard plastic buckets to deliver chemotherapeutic drugs to hospital floors -monitor dating of emergency syringes -review inventory control

question

pharmacy waste disposition

answer

-select vendor to handle waste -if waste is hazardous, use hazardous waste labels -keep containers covered when not in use -limit qty and allow for 3 days to remove waste when limit reached -segregation of waste at point of generation, centralizing segregation of waste, managing all drug waste as hazardous

question

hazardous waste

answer

-drugs with more than one active ingredient -chemotherapy agents -drugs with low LD50s -endocrine disruptors -all drugs on P and U lists

question

investigational new drug

answer

-dispensed for a controlled study sponsored by manufacturer, institution or agency -FDA can dispense particular drug if all other treatments exhausted -P&T committee asks pharmacy to maintain administrative control over clinical investigation

question

investigational new drug hospital pharmacy duties

answer

-distribution and control of investigatory drugs like procurements, storage, management, label, packaging, distribution -clinical services like patient education, training, and adverse drug rxns -research activities like collecting data or prepping drug -clinical study management like writing accountability reports to drug sponsor

question

investigational new drug application

answer

must be submitted to do human testing after animal trials

question

new drug application

answer

-application to FDA for marketing approval -after clinical studies and adequate data for safety an effectiveness

question

FDA indication

answer

-for a very specific disease or cause of specific disease -sponsor must label with package insert for specific indication -limits what sponsor can promote drug for

question

drug approval process phase I

answer

-determines dose range for safety and toxicity with 20-80 healthy ppl and is 9-18 months in length

question

drug approval process phase II

answer

-given to 100-300 ppl who have the disease to be treated focusing on dose response and dose schedule

question

drug approval process phase III

answer

-with several 100 to 1000 ppl in groups for which the med is intended -compares new treatment with standard therapy or placebo -med taken in way in will be used regularly -can take 2-5 years

question

drug approval process phase IV

answer

postmarketing evaluation

question

physician initial process of studying investigational drugs

answer

-must get approval for study of investigational agent by institutional review board (IRB) -interactive voice response system (IVRS)- call in electronic menu allowing fro screening, randomization, environment and assignment of subject study drug. PIN and password for tracking purposes and allows for reorder of drug supply -complete investigational drug data form and return to pharmacy -provide pharmacy with copy of signed consent form -instruct manufacturer to supply pharmacy with pharmacologic and stability data -arrange for pharmacy to get drug transfer and maintain min level of the med

question

storage of investigational drugs

answer

-put in area with limited access and separate from other meds -backup power source -daily log of temp maintained -keep drugs in proper conditions that are determined by sponsor

question

accountability and record keeping of investigational drugs

answer

-records show that the drug was dispensed or administered according to protocol, dispensing records kept for sponsor -check expiration dates and graduated dosing regimens -support validity of study data from your data -document handling of study drug from receipt to dispensing to return or disposal

question

investigational drug accountability record (DAR)

answer

-sign out all study drug at time of dispensing, double check drug assignment -fill out dispensing info completely -never alter any entry on DAR, use a single line with date and initial -write entry on DAR at time of dispensing, data in each column -be neat in entries -use subjects initials consistently -dont enter below last line of form -all entries written completely

question

patient education of investigational drugs

answer

-instruct on use, handling, storage and returning -inform that drug intake is being monitored -inform consequences of missed doses or varied timing -warn against sharing drug -provide list of prohibited meds or interactions -return empty bottles

question

compliance of investigational drugs

answer

usually requires at least 80% compliance that drug actually taken to be evaluable

question

disposition of investigational drugs

answer

-leftover drugs returned to sponsor -obtain med reconciliation instruction in writing from sponsor -return to sponsor

question

Pharmacy security

answer

-all pharmacies require workable alarm when closed -will have policies and procedures -may have lockers for employees -keys required to be signed out from secure location to enter pharmacy, keys kept by pharmacist or designated employees -motion detectors installed in working conditions -only licensed pharmacists may dispense med and supervise pharm techs -restrict access to meds to "authorized personnel only"

question

allowances

answer

deduction is given from the purchase price by seller to purchaser

question

avg cost method

answer

inventory costing method that uses weighted avg unit cost to allocate costs of good avail for sale to inventory and cost of goods sold

question

consigned good

answer

goods held for sale by one party, ownership of good usually retained by other party

question

cost of goods avail for sale

answer

sum of beginning merchandise inventory and cost of goods purchased

question

cost of goods purchased

answer

sum of net purchases and freight charges associated with a product

question

cost of goods sold

answer

total cost of merchandise sold during period by subtracting inventory from cost of goods avail for sale

question

credit terms

answer

-terms that specify amt of cash discount and time period its offered -indicates length of time where purchaser expected to pay full invoice price

question

current replacement cost

answer

cost to replace an inventory item

question

days in inventory

answer

measure the avg # days the inventory is held, calculated as 365 divided by inventory turnover rate

question

depreciation

answer

-process to allocating to expense the cost of a plant asset over its useful life in a rational and systemic manner -takes into acct the cost, the useful life, and salvage value

question

first in, first out

answer

inventory costing method that assumes cost at the earliest purchase of goods is the 1st to be recognized as the cost of the goods sold

question

free on board (FOB) destination

answer

goods are placed free on board at buyer's place of business and seller pays freight cost, goods belong to seller in transit

question

FOB shipping point

answer

goods are placed free on board the carrier by the seller, buyer pays freight cost, goods belong to buyer in transit

question

last in, first out

answer

-assumes that the costs of the latest units purchased are the 1st to be allocated to cost of goods sold

question

lower of cost, market basis

answer

-inventory is slated at the lower of cost or market (current replacement cost)

question

net purchases

answer

purchases less purchase returns and allowances and purchase discounts

question

periodic inventory system

answer

-costs are allocated to ending inventories and cost of goods sold at end of period. cost of goods found at end of period by subtracting ending inventory from cost of goods avail for sale

question

purchase discount

answer

cash discount claimed by buyer fro prompt payment of balance due

question

purchase invoice

answer

document that supports each credit purchase

question

sales discounts

answer

reduction given by seller for prompt payment of credit sale

question

specific ID method

answer

actual physical flow costing method where items still in inventory are specifically costed to arrive at the total cost of the ending inventory

question

weighted avg unit cost

answer

avg cost that is weighted by the # of units purchased at each unit cost

question

formulary exception process

answer

process that allows right to use select nonformulary and formulary meds to be dispensed

question

formulary override

answer

requires physician to request approval to prescribe nonformulary med to be dispensed

question

prior authorization

answer

to get authorization to use nonformulary drugs, requires physician to request and document reason why med needed

PTCE pharmacy inventory management (8.75%) – Flashcards

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