Introducing the Scorecard to Pharmacy Benefit Manager




Pham, Kim

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Prescription drugs are considered the fasting growing component of national health care expenditures, experiencing double-digit growth rates in the last 6 years. The rising cost of prescription drugs has gained the attention of policy makers, health plan sponsors, health care practitioners, and patients. Many have looked to pharmacy benefit management companies to help achieve cost effective, high quality pharmaceutical care at a high level of service. The pharmacy benefit management industry has performance measures that help track progress towards this goal. This study identified performance measures employed in the pharmacy benefit management industry. The measures are classified using the Balanced Scorecard model. This management tool enables the industry to more fully use performance measures. Using the Balanced Scorecard framework, a survey was developed to determine the extent of use of the identified performance measures. The survey was sent to mid to senior managers of pharmacy benefit management companies. The findings revealed financial related measures were most commonly used. The second most commonly used measures were those relating to internal business processes followed by learning and growth measures. The least most commonly used measures were those relating to customers.


An Applied Research Project Submitted to the Department of Political Science, Texas State University-San Marcos, in Partial Fulfillment for the Requirements for the Degree of Masters of Public Administration, Spring 2004.


pharmacy, benefit management, prescription drugs, health care, cost, Public Administration


Pham, K. (2004). Introducing the scorecard to pharmacy benefit manager. Masters of Public Administration, Texas State University, San Marcos, Texas.


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