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Dr. Schumock is a graduate from Washington State University (BPharm), the University of Washington (PharmD), and the University of Illinois at Chicago (MBA, PhD). He also completed a residency and a research fellowship. Currently, Dr. Schumock is professor and Head of the Department of Pharmacy Systems, Outcomes, and Policy at the University of Illinois at Chicago. He teaches courses in pharmacy management, pharmacoeconomics, and business planning for pharmacy services. He has published over 200 articles, book chapters, and books. He is on the editorial boards of the journals Pharmacotherapy and PharmacoEconomics, and is Associate Editor of the Journal of Comparative Effectiveness Research.

Dr. Donnelly is a graduate from the University of Illinois at the Medical Center (BPharm) and the University of Illinois at Chicago (MBA, PharmD). Dr. Donnelly is currently Director of Pharmacy Services at the University of Illinois Hospital & Health Sciences System and clinical professor and Assistant Dean for Clinical Affairs at the University of Illinois at Chicago. He is responsible for planning, organizing, and directing the activities of the pharmacy department. Dr. Donnelly’s areas of interest include pharmacy administration as well as technology and automation as it relates to the medication use process. He is a Fellow of the American Society of Health-System Pharmacists.



After completing this chapter, readers should be able to

  1. Provide an overview of planning activities conducted by pharmacy and health care organizations.

  2. Describe the general process common to all types of planning.

  3. Describe the purpose of strategic planning and illustrate the specific steps to develop a strategic plan.

  4. Differentiate a vision statement from a mission statement.

  5. Highlight examples of strategic planning in pharmacy organizations.

  6. Identify barriers and limitations to planning.

  7. Identify and describe the different people involved in the strategic planning process, and what roles/functions they play.


Ted Thompson graduated from pharmacy school magna cum laude 2 years ago with a Doctor of Pharmacy degree and successfully passed the licensing examination, making him a registered pharmacist. After graduation, Ted completed a pharmacy practice residency at a prestigious teaching hospital with a reputation for having an excellent pharmacy department and advanced clinical pharmacy services. Following his residency, Ted took a job as a clinical pharmacist in a community hospital in his hometown. In hiring Ted, the hospital pharmacy department fulfilled an interim objective toward their goal of developing contemporary pharmacy services.

The hospital is located in a town of approximately 100,000 people, and a large portion of the population is elderly. Partly because of both the favorable payer mix (mostly Medicare) and the fiscal savvy of the Chief Financial Officer (CFO),1 the hospital has done very well from clinical and economic perspectives. The pharmacy department has a good drug distribution system and a Director of Pharmacy (DOP) who, while not trained clinically, understands ...

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