Contingent valuation and pharmacists' acceptable levels of compensation for medication therapy management services

Junling Wang, Song Hee Hong

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Background: Pharmacists' acceptable level of compensation for medication therapy management (MTM) services needs to be determined using various economic evaluation techniques. Objectives: Using contingent valuation method, determine pharmacists' acceptable levels of compensation for MTM services. Methods: A mailing survey was used to elicit Tennessee (U.S.) pharmacists' acceptable levels of compensation for a 30-minute MTM session for a new patient with 2 medical conditions, 8 medications, and an annual drug cost of $2000. Three versions of a series of double-bounded, closed-ended, binary discrete choice questions were asked of pharmacists for their willingness to accept (WTA) for an original monetary value ($30, $60, or $90) and then follow-up higher or lower value depending on their responses to the original value. A Kaplan-Meier approach was taken to analyze pharmacists' WTA, and Cox's proportional hazards model was used to examine the effects of pharmacist characteristics on their WTA. Results: Three hundred and forty-eight pharmacists responded to the survey. Pharmacists' WTA for the given MTM session had a mean of $63.31 and median of $60. The proportions of pharmacists willing to accept $30, $60, and $90 for the given MTM session were 30.61%, 85.19%, and 91.01%, respectively. Pharmacists' characteristics had statistically significant association with their WTA rates. Conclusions: Pharmacists' WTA for the given MTM session is higher than current Medicare MTM programs' compensation levels of $15-$50 and patients' willingness to pay of less than $40. Besides advocating for higher MTM compensation levels by third-party payers, pharmacists also may need to charge patients to reach sufficient compensation levels for MTM services.

Original languageEnglish (US)
Pages (from-to)e121-e132
JournalResearch in Social and Administrative Pharmacy
Volume11
Issue number3
DOIs
StatePublished - May 1 2015

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Medication Therapy Management
Pharmacists
Compensation (personnel)
Compensation and Redress
Health Insurance Reimbursement
Drug Costs
Hazards
Medicare
Proportional Hazards Models
Cost-Benefit Analysis

All Science Journal Classification (ASJC) codes

  • Pharmacy
  • Pharmaceutical Science

Cite this

Contingent valuation and pharmacists' acceptable levels of compensation for medication therapy management services. / Wang, Junling; Hong, Song Hee.

In: Research in Social and Administrative Pharmacy, Vol. 11, No. 3, 01.05.2015, p. e121-e132.

Research output: Contribution to journalArticle

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abstract = "Background: Pharmacists' acceptable level of compensation for medication therapy management (MTM) services needs to be determined using various economic evaluation techniques. Objectives: Using contingent valuation method, determine pharmacists' acceptable levels of compensation for MTM services. Methods: A mailing survey was used to elicit Tennessee (U.S.) pharmacists' acceptable levels of compensation for a 30-minute MTM session for a new patient with 2 medical conditions, 8 medications, and an annual drug cost of $2000. Three versions of a series of double-bounded, closed-ended, binary discrete choice questions were asked of pharmacists for their willingness to accept (WTA) for an original monetary value ($30, $60, or $90) and then follow-up higher or lower value depending on their responses to the original value. A Kaplan-Meier approach was taken to analyze pharmacists' WTA, and Cox's proportional hazards model was used to examine the effects of pharmacist characteristics on their WTA. Results: Three hundred and forty-eight pharmacists responded to the survey. Pharmacists' WTA for the given MTM session had a mean of $63.31 and median of $60. The proportions of pharmacists willing to accept $30, $60, and $90 for the given MTM session were 30.61{\%}, 85.19{\%}, and 91.01{\%}, respectively. Pharmacists' characteristics had statistically significant association with their WTA rates. Conclusions: Pharmacists' WTA for the given MTM session is higher than current Medicare MTM programs' compensation levels of $15-$50 and patients' willingness to pay of less than $40. Besides advocating for higher MTM compensation levels by third-party payers, pharmacists also may need to charge patients to reach sufficient compensation levels for MTM services.",
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