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Dr. McDonough is co-owner and Director of Clinical Services at Towncrest, Solon Towncrest, and Towncrest Compounding Pharmacies in Iowa City and Solon. He also co-owns Innovative Pharmacy Solutions—a consulting and clinical pharmacy software company. He is an adjunct professor (Clinical) at the University of Iowa College of Pharmacy. Dr. McDonough received a BS in pharmacy, an MS in pharmacy administration, and a PharmD from the University of Iowa College of Pharmacy. At his community practice in Iowa City he has developed and implemented several pharmacy services, including pharmaceutical case management (PCM), medication therapy management (MTM), continuous medication monitoring (CMM), immunization services, and health screenings. He is board certified in geriatrics and pharmacotherapy. He is invited frequently to speak about practice development and implementation and has published numerous articles and book chapters on these topics.



After completing this chapter, readers should be able to

  1. Describe the types of value-added services that pharmacists have implemented in their practices.

  2. Discuss the components of a value-added service to consider before implementation.

  3. Recognize the key components of a policies and procedures manual.

  4. Discuss management of the marketing mix during service implementation.

  5. Describe the role that collaborative practice agreements (CPAs) have in developing value-added pharmacy services.

  6. Describe strategies for pricing and obtaining compensation for value-added pharmacy services.


Carol Smith, the pharmacist-owner of Care-Rite Pharmacy, is interested in expanding her clinical services. Her pharmacy is located in a city with a population of approximately 100,000 people. Although she has not implemented any specific value-added services in the past, patients and other health care providers recognize her practice as customer friendly and service oriented. She has two full-time pharmacists and two part-time pharmacists who have been working at the pharmacy for a number of years (range 5–15 years). Recently, they have completed a strategic plan, a strengths, weaknesses, opportunities, and threats (SWOT) analysis, and a survey of their patients. The results of the patient survey identified their key target market as women 50 years of age and older. Initially, they had wanted to implement a diabetes educational program, but their market research determined that a local hospital sponsored an American Diabetes Association (ADA)-recognized program. The hospital is a strong presence in their community, and the hospital’s diabetes educators were not interested in collaborating with local pharmacies. Also, they looked into developing a community based anticoagulation service, but after some checking into the reimbursement for this type of service, they realized that this service would not be feasible financially. Their market research did show that there was a need in their community for a MTM program. They already had a large percentage of high-risk patients who were taking four or more chronic oral medications and had several chronic medical conditions. Many of these patients expressed a need for assistance with medication management issues. They also serve a ...

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