Final Exam Case Study PHRP 312
April 29. 2021
Background
Downtown Pharmacy is an independent community pharmacy servicing the local Baltimore Metropolitan area, and has close ties with several local Baltimore Health Systems. The mission of Downtown Pharmacy is to prevent recent hospital discharged Medicare patients from unnecessary’ readmission to the hospital due to a medication-related event. The pharmacy will achieve this by providing personalized pharmaceutical care, promoting the safe use of medications, and providing patients with the necessary tools and direct them to resources needed to improve their quality of health.
The pharmacy will achieve this by providing services, such as adherence counseling, adherence/refill reminders, and medication education to Medicare patients through the unique “We CARE” program offered as a service of the pharmacy. It is the duty of the Downtown Pharmacy to ensure all patients, especially every Medicare patient receives individualized attention in order to keep him or her healthy. The Downtown team plans to use close coordination of care and in-depth patient profiling to generate patient models to help those most in need of interventions and support. Use of Tele-Pharmacy contacts and their APP will assist with this coordination. The pharmacy will be open Monday through Saturday, closed Sunday.
The Downtown pharmacy is a revamped version of a very successful traditional community pharmacy owned by the husband and wife pharmacy team of Nathan and Norma Lee Schwartz located immediately outside Baltimore in Glen Bumie. The new Downtown pharmacy will be owned by Nathan and Norma Lee and their son and daughter, Steven and Susan. It will be managed by Susan and Steven, who are pharmacists. Drs. Steven and Susan Schwartz, graduated from The Notre Dame of Maryland University School of Pharmacy. The Downtown pharmacy will be located at 4253 Greenmount Avenue in Baltimore, Maryland, in an office building with 24 physician practices who are affiliated with some of the local hospitals in Baltimore. Downtown is in close proximity to several bus lines and light rail stations: intercepting patients from Sinai Hospital, The Johns Hopkins Hospital, MedStar Union Memorial,
MedStar Good Samaritan, and Mercy Medical Center. Downtown Pharmacy will serve Medicare patients discharged from these hospitals, as well as other walk-in patients. This unique outpatient pharmacy will contract with these hospitals so that all Medicare outpatients from these hospitals are encouraged to use Downtown Pharmacy to have their prescriptions filled and receive the excellent services Downtown offers. Patients then have the option to sign up for the We Care Program where they will receive further follow-up counseling on their medication regimen as prescribed by their primary care provider.
According to the United States Census Bureau reported in 2019, the city of Baltimore was estimated to have 821,312 people, of which 18% arc age 65 and older and are thereby more likely to be enrolled under Medicare. This is a very large population of individuals that Downtown Pharmacy will target, and, potentially enroll in their program.
We Care app.
s« The pharmacy plans to build relationships with hospitals, physicians, and local companies in order to
p gain referrals and build our business. ‘Hie pharmacy will contract with insurance companies to be on their
p list of acceptable pharmacies so patients will be more likely to use our pharmacy rather than any other
competing pharmacy.
The *.
medications with Downtown Pharmacy, our duty is to reduce hospital readmission rates, promote the safe use of Program requires patients wilso equip patients with all the necessary tools needed to improve their quality of health, duty. When patients are out of refinCon adherence is the number one priority of the We Care Program at Downtown Downtown Pharmacy team. They will have*uients, specifically Medicare patients, out of the hospital. This will be our promise to the hospitals we build relationships with and we will do everything we can to ensure lowered readmission rates over time. Keeping patients out of the hospital is not only the main goal for the patient; it has now become the goal for the hospital’s financial viability, and by incorporating Downtown Pharmacy’s services into the Baltimore city area, we will help the state of Maryland reduce any penalties or fines induced by the Center of Medicare and Medicaid Services (CMS).
a Accounting and Eço.nçunjç Breakeven Formulas
· The accounting breakeven assumes zero profit
· The economic breakeven assumes profit
tl
Accounting Breakeven Calculation:
Total revenue = Total costs
Price v Pv-VCRv v(P – VCR)
FC + VCR v
FC
FC
v = FC
(P – VCR)
Economic Breakeven Calculation
Total revenue
Total costs + Profit
Price v Pv-VCRv
FC + VCR v + Profit
FC + Profit
v(P —VCR) = FC + Profit
v = FC + Profit (P – VCR)
P = Price V = volume FC = Fixed Costs VCR = Variable Cost Rate

Do the SWOT analysis and calculate accounting breakeven and economic breakeven based on the formula on the sheet according to he budget analysis.