Managing Your Pharmacy: Module 3 – Financial Management

This 3-part module covers aspects of interpreting and analyzing financial statements, as understanding the third-party payer market.


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This course is Module 3 of the Managing Your Pharmacy: The Business Essentials program.

Learning objectives:

  • Identify the purpose and primary users of financial statements
  • Describe, in general terms, the key important accounting concepts relevant to pharmacy
  • Distinguish between three different types of accountants’ letters: auditor’s report, review engagement report, notice to reader
  • Describe, in general terms, how to interpret an income statement
  • Describe the various elements of the balance sheet
  • Define and provide examples of assets and liabilities and equity
  • Discuss the value and importance of the cash flow statement
  • Discuss the importance of the notes to the financial statements
  • Define and differentiate between key financial ratios
  • Calculate the ratios from a pharmacy’s income statement and balance sheet
  • Interpret key ratios by comparing their values to budgets, previous-year results and industry averages
  • Understand who the stakeholders are in the third-party provision of drug plan benefits, their roles and their business models
  • Understand how drug benefit plans are structured in Canada for private payers
  • Understand why drug plan cost containment has become a consistent theme for plan sponsors (employers)
  • Highlight trends in drug plan management within third-party payer plans in Canada
  • Outline threats and opportunities for pharmacists, and the profession of pharmacy, as they relate to third-party payers

Course outline:

  • Part 1:
    Financial Statements and Analysis
  • Part 2:
    Analysis of Financial Statements
  • Part 3:
    Third-Party Payer Market

Course at a glance:

Who should take this course:

This program is excellent for practising pharmacists, international pharmacy graduates, pharmacy students, pharmacy owners and managers who are interested in or intending to open, operate or manage a community pharmacy or who are already doing so and wish to improve their management and operation skills. 

Development Team: