Estimating Costs Of Dispensing Services In Community Pharmacies In Taiwan Using A Time-Driven Activity-Based Costing Approach
Author(s)
Peng An Chen, Bachelor, Yen-Ming Huang, Ph.D.;
National Taiwan University, Department of Pharmacy, College of Medicine, Taipei, Taiwan
National Taiwan University, Department of Pharmacy, College of Medicine, Taipei, Taiwan
Presentation Documents
OBJECTIVES: This study aimed to identify and analyze the costs associated with dispensing services in community pharmacies in Taiwan.
METHODS: This study used micro-costing approach and time-driven activity-based costing approach (TDABC) to comprehensively estimate dispensing costs, which was categorized into fixed costs, variable costs and labor costs. We first mapped the essential activities involved in the dispensing service process in pharmacy practice. Subsequently, we conducted an on-site observation to record the time allocated to each key step of the dispensing activities at eight selected pharmacies. Using a TDABC approach, we converted the recorded time into monetary units to enable precise calculations of labor costs associated with dispensing tasks. To collect dispensing time under various conditions, we simulated six different types of prescriptions, which included three major categories of medications: those that require counting (i.e., bulk drugs), those not require counting (i.e., unit-dose packaging), and controlled substances. Descriptive analyses were performed to capture the variations in the costs of dispensing services.
RESULTS: Among the six prescription dispensing scenarios, the prescription with the highest total cost includes one bulk drug and one controlled substance, with a total cost of NT$ 65.40±19.08. The prescription with the lowest total cost includes only one bulk drug, with a total cost of NT$ 55.45±13.40. The eight selected pharmacies incur an average fixed cost of NT$ 25.19±11.94 and a variable cost of NT$ 5.89±1.82 per prescription dispensed. Pharmacists required extra time for dispensing each additional bulk drug (NT$ 4.12±1.53), unit-dose medication (NT$ 2.32±1.26), and controlled substances (NT$ 4.64±2.84). Notably, pharmacies that manage controlled substances using paper records spend more time both during and after the dispensing process compared to those that use electronic systems.
CONCLUSIONS: This study detailed the costs associated with the prescription dispensing process to support the development of sustainable pharmaceutical services in Taiwan.
METHODS: This study used micro-costing approach and time-driven activity-based costing approach (TDABC) to comprehensively estimate dispensing costs, which was categorized into fixed costs, variable costs and labor costs. We first mapped the essential activities involved in the dispensing service process in pharmacy practice. Subsequently, we conducted an on-site observation to record the time allocated to each key step of the dispensing activities at eight selected pharmacies. Using a TDABC approach, we converted the recorded time into monetary units to enable precise calculations of labor costs associated with dispensing tasks. To collect dispensing time under various conditions, we simulated six different types of prescriptions, which included three major categories of medications: those that require counting (i.e., bulk drugs), those not require counting (i.e., unit-dose packaging), and controlled substances. Descriptive analyses were performed to capture the variations in the costs of dispensing services.
RESULTS: Among the six prescription dispensing scenarios, the prescription with the highest total cost includes one bulk drug and one controlled substance, with a total cost of NT$ 65.40±19.08. The prescription with the lowest total cost includes only one bulk drug, with a total cost of NT$ 55.45±13.40. The eight selected pharmacies incur an average fixed cost of NT$ 25.19±11.94 and a variable cost of NT$ 5.89±1.82 per prescription dispensed. Pharmacists required extra time for dispensing each additional bulk drug (NT$ 4.12±1.53), unit-dose medication (NT$ 2.32±1.26), and controlled substances (NT$ 4.64±2.84). Notably, pharmacies that manage controlled substances using paper records spend more time both during and after the dispensing process compared to those that use electronic systems.
CONCLUSIONS: This study detailed the costs associated with the prescription dispensing process to support the development of sustainable pharmaceutical services in Taiwan.
Conference/Value in Health Info
2025-05, ISPOR 2025, Montréal, Quebec, CA
Value in Health, Volume 28, Issue S1
Code
HSD19
Topic
Health Service Delivery & Process of Care
Disease
No Additional Disease & Conditions/Specialized Treatment Areas