Planning for a Department of Defense mail service pharmacy system.

Abstract

This thesis provides a methodology for use in addressing whether or not the Department of Defense should alter the way in which it distributes medications to eligible beneficiaries. The possibility of providing centralized mail-order services as a means of filling prescriptions for maintenance medications is examined. Two major trade-offs are involved. First, the creatior. of Kail Service Pharmacies (MSF) will provide better services to eligible beneficiaries, including those previously lacking access to prescription services. This will lead to increased demand and costs. A method is provided for determining demand and the cost of medications required to support this demand. Second, the addition of mail-order services may require large capital expenditures for facilities and equipment. The trade-off is system-wide savings in inventory and related costs resulting from the consolidation of prescription dispensing services. MSP system alternatives are examined using a net present value approach. Examples are hypothetical except where stated otherwise.