Does the benefit outweigh the costs? You seem like the perfect person to ask. By the time you've invested all the time and energy into training them so they can work somewhat independently, the year is over.
How much money would you say it costs to have and train a resident, and how much money would you say they save the hospital? Take into consideration all the staff helping with training, journal clubs, and projects. Besides, there needs to be a residency coordinator, and they need to get paid, too. It just doesn't seem worth it unless the resident stays on after residency.
Actually, there is an internal report for CPPO (Clinical Pharmacy Practice Office) that a VA public version was made and a private one was sent to the Office of Academic Affiliations (OAA). So, in the VA, the individual medical centers DO NOT fund residencies, that is done through the Central Office, and OAA was the responsible organization. Also, they fund all clinical postgraduate training (so physicians, dentists, nurses, podiatrist, clinical psych, etc.) as we are separate from the CMS DGME process. I should look at updating it when I have some spare cycles.
The methods were measuring something called cost per prescription using an internal costing approach that the government uses for managerial cost accounting, a system today called the Decision Support System but at one point was called Automated Medical Information System. This system is used to set the budget for each pharmacy, the number of personnel allocated to each pharmacy, and the level of extra infrastructure support that is given to the network for pharmacy matters. As medications are the second largest line item behind personnel VA wide, this has always driven the importance of the business.
Until about 5 years ago, you have to understand that pharmacists would be paid a retention bonus of somewhere between $5k and 10k in most areas of the country (but surprisingly not CA, IL, and NY because they are always easy to hire stations). So, there's kind of a cost offset of that annually that gets figured into post General Schedule compensation. I say this because I have a feeling that you were once one of us.
Resident oversight costs from the VA Central Office perspective:
Based on costs and positions for a I-B facility (that you would not have otherwise):
1 GS-13 rank pharmacist as the Clinical Coordinator and Master RPD and oversight per 10 residents - $160,000
OR
0.2 FTE commitment per subsidiary RPD (this is an OAA policy) - $25k-$35k
ALBCC (Account Level Budgeter Cost Center) Cost Per FTE (basically the cost of lights, water, property consumption and destruction, and consumption of services per FTE): $7k to $13k
Salary and other allowances - $65k (This is calculated from a salary of $45k with benefits)
So, per resident, we get at worst:
$35k support for the trainer
$13k for the supplies consumption (just being on the VA campus)
$65k for the salary
A resident generally costs OAA in the order of $113k per resident on average overall.
Benefits:
(These numbers were done in advance of the changes to credentialing, so don't reflect today's numbers.)
DSS productivity per pharmacist resident: 0.7 FTE contribution observed (that is because the residents actually work and that the VA pharmacist productivity is rather low. Work for us and you'll figure out why). That was surprising, but it also holds across the board. Residents work hard and are expected to work hard.
OLC/HR - Cost to process a pharmacist involuntary termination: >$600k (if you're wondering why we put pharmacists on permanent administrative leave to the minimum retirement age, if the cost of doing that is less than $600k, then usually Regional Counsel tells us to just put them in some dumb job and immediately retire them at age.) There have been less than 10 internal trained residents given involuntary termination or terminal administrative leave and the cases were for theft and not misbehavior (and the difference is misbehavior is anything nonprofessional rather than something your license would be yanked for directly).
Positive and Influential Voice With Academia (No numbers): It is part of OAA's mission to have reasonable relationships with the Academic Health Centers and running this as a loss leader (which really it is not) if they get access to better quality personnel.
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It boils down to the matter that residents actually subsidize their own training. They actually contribute more than their actual resident stipend into the productivity such that we would rather underpay a resident salary and benefits than pay out a 0.7 FTE. That, and we usually got decent people as residents that we could track them for a year and hire the ones we want. Also, we do weed out those who cannot acclimate to the culture or who are on paper stellar but working with them is a chore.
My own experience with residents is that at its most cynical, I can rearrange my staffing for them to cover undesirable areas and shifts, I can offload short-term projects in the name of "education" on to them, and if I don't like them, I can make them disappear immediately if I'm not willing to wait out the year with them. Weirdly enough, I'm actually the opposite of that when I have to act as an RPD, but I also will not voluntarily take residents under any circumstances short of being ordered to. I still don't believe in it philosophically, and I do not believe in clinical pharmacy being a self-supporting function. It divides the department into operational and clinical lines without major management interference and it decreases continuity. I also consider informatics and pharmacoeconomics/managed care residents to be substandard to other methods. The academic or NIH fellowships for informatics always gives superior personnel, and industry fellowships alone or paired with an in-program masters to produce excellent working knowledge pharmacists.
So, I don't believe in residency, but institutionally, you always get more work out of a resident in the name of education than if you paid them straight time and basically worked a reduced schedule for the educational moments. The final contention I have is that with the exception of nuclear, there is no practice that is restricted to a pharmacist with a residency or not. The residency has never clearly trained anyone to the point where they are decisively always going to better than a lay practitioner, there just is not enough specialized knowledge in our work to differentiate (there are specific spot cases like oncology, neonatology, and nutrition that learn toward that specialization, but not insurmountable that you cannot assign a good pharmacist there with a clean conscience).
But, that doesn't stop a club and clique from forming, so I see the day when only those who go through residency get hospital jobs. That's fine, I'll be retired by then. (Still though, the informatics residents have been so substandard, I make it a point to say that I am better trained than residents in informatics.)