Financial performance of the teaching pharmacies in Isfahan: an economic evaluation

A M Sabzghabaee, H Sajjadi, SH Badri, SM Hosseini-Biuki, R Sheikhaboumasoudi


Teaching pharmacies are amongst the important cornerstones of a healthcare system for drug supplying,
pharmacy education and pharmacy practice research. Assessment of the Iranian healthcare system costs
shows that after personnel charges, drug outlay is the second expensive factor. This great financial mass
requires integral audit and management in order to provide costumers satisfaction in addition to financial
viability. Teaching pharmacies are required to realize financial viability as well as providing several
educational and drug servicing goals, which makes microeconomic analysis important. The aim of this study
was to evaluate the financial performance of the teaching pharmacies affiliated with the Isfahan University of
Medical Sciences (with the abrreviated names as: SHM, ISJ, AZH for the confidentialiy of the financial
data). This is a descriptive and cross-sectional study done in 2008. The target pharmacies of this study were
all the 3 teaching pharmacies affiliated with the Isfahan University of Medical Sciences. The data collecting
template was prepared using the standard scientific methods according to the goals of this research The goals
also nominated necessary items needed in economic profit evaluation. The data collection template was
completed by reference to the teaching pharmacies financial documents and reports, used as a base for
calculating the total income and the total costs in 2007-2008 financial year. The difference between these
two balances showed the value of profits or loss. The profit/cost ratio was also calculated, using the
proportion of the total income to the total costs. The collected data was statistically analyzed using the Excel
software (Microsoft 2007). For the financial year 2007-2008, the difference between the total income and the
total costs was -831.6 million Rials (excess costs to income) for the SHM pharmacy, + 25.4 billion Rials for
the ISJ pharmacy and -429.5 million Rials for the AZH pharmacy. According to our findings there is a strong
requirement to improve the financial performance of all the three teaching pharmacies while maintaining a
high standardard of teaching and educational affairs.
Keywords: Economic evaluation; Teaching pharmacy; Cost; Income; Isfahan

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