Finance/Budgeting/Inventory Management Rotation

Preceptor: Vince Oriolo, RPh

The Finance/Budgeting/Inventory Management rotations are designed to provide the resident with a solid foundation in health system pharmacy asset management and budgeting.

During the Inventory Management rotation, residents will develop a thorough understanding of the principles and standards of asset management, drug distribution systems and the technology used to support these systems.  This includes, but is not limited to: understanding the asset management plans for the health system hospitals and the pharmacy departments; an understanding of the policies and procedures for purchasing pharmaceuticals and related products within UPMC; an understanding of the relationships, policies and asset management principles between the UPMC, HC Pharmacy and the Department of Pharmacy; understanding of the software programs and automated technology used to support purchasing and inventory control systems; understand the methods and criteria that the UHC and other buying groups use to evaluate multi source drugs and vendor bid responses.  Be able to describe the “bid” process for pharmaceuticals; understanding of the asset management principles involved in inventory control such as cycle counts, audits, physical inventory, turnover rate, days on hand, etc; Attend an asset management meeting and other meetings related to purchasing; an understanding of the laws and rules related to own use and non own use contracts and how the different elements of the integrated health system are regulated by these definitions.

The Finance Rotation will provide the resident with a thorough understanding of the financial management process to used to develop and monitor a budget for pharmaceuticals and related expenses. The rotation will include exposure to (but not limited to): Budget Calendar and planning, responsibilities of the Pharmacy Department in the budget process, budget objective setting, personnel requests/determining manpower requirements, expenses, revenue, capital equipment, reimbursement systems, development and maintenance of a pharmacy cost accounting system, budget variance reporting, cost containment programs and documentation and cost/benefit analysis of programs.

The objectives of the rotation are as follows:

1. Develop financial management plans.
2. Develop equipment plans.
3. Contribute to the development of information management plans.
4. Procure and store expendable supplies according to the health system's policies and procedures.
5. Participate in the establishment or revision of the pharmacy's financial management system.
6. Participate in managing the installation of approved equipment.
7. Control the pharmacy's inventory.
8. Perform prospective and retrospective financial and clinical outcomes analyses.
9. Construct reports and recommend plans to improve outcomes based on conclusions drawn from analysis of financial and clinical outcomes data.