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The Adequacy of Pharmacist Supply: 2004 to 2030

V. Conclusions

This study looked at the trends in pharmacist supply and demand determinants to assess the current and future adequacy of supply.  These trends include changes in technology, distance and distributive learning models, growth and aging of the population, expansion of the Nation’s pharmacy school capacity, and other developments (e.g., creation of the Medicare Part D Program) that have occurred since HRSA’s 2000 Report to Congress - The Pharmacist Workforce: A Study of the Supply and Demand for Pharmacists.  This section contains a summary of key findings and their implications, as well as the study strengths, limitations, and areas for future research.

A. Summary of Key Findings and Implications

Pharmacies across the Nation continue to experience some difficulty in filling vacancies, but the severity of the shortfall appears to have diminished somewhat since HRSA’s 2000 Report to Congress. Several factors help explain the improvement in adequacy of supply.

  • The Nation has increased its supply of pharmacy technicians and has increased the scope of practice of these technicians. As the technician-to-pharmacist ratio increases, however, the Nation cannot continue to rely on producing more technicians to reduce the shortfall of pharmacists.
  • Rising wages for pharmacists has both provided an incentive for pharmacists to remain in the workforce and for pharmacies to scale back their hiring needs.
  • Improved technology continues to make pharmacists more productive.

In response to high pharmacist vacancy rates, rising pay, and concerns over a growing shortfall, the Nation’s educational capacity has expanded and an increasing number of people have chosen pharmacy as a career.  The Nation’s educational capacity has expanded through the opening of new schools, as well as increased enrollment at existing schools.  The number of colleges and schools of pharmacy with accredited professional degree programs rose from 82 in 2000 to 92 by 2005.  AACP predicts that 110 programs will be open by Fall 2010.  The number of graduates from pharmacy schools has increased from 7,300 in 2000 to 9,100 in 2005.  The use of distance learning models in pharmacy education has expanded since the 2000 Report to Congress, and has contributed to the growth in existing training programs.  Raising the minimum education level (to a Pharm.D) for new pharmacists does not appear to have reduced the desirability of pharmacy as a career. The Nation’s ability to continue expanding its educational capacity is threatened by a potential shortfall of faculty, with a large proportion of faculty nearing retirement and wages for faculty falling behind the wages for pharmacists in retail settings.

The projections suggest that only when combining an optimistic supply scenario with a conservative demand scenario will future supply be adequate to meet the needs of a growing and aging population. However, under most scenarios modeled, supply will be insufficient to meet the needs of a population caused by growth in per capita consumption of  pharmaceuticals.

The demand projections assume that the role of pharmacists will remain largely unchanged over the projection horizon.  With the Pharm.D now the minimum educational requirement for entry into the workforce, new pharmacists have greater ability than do earlier cohorts to take on increasing responsibilities in patient management and counseling. Participants at a 2002 conference discussed the number of pharmacists that would be needed to deliver high-quality care under a scenario where pharmacists play a larger role in patient care management.  These participants concluded that an estimated 417,000 pharmacists would be needed by 2020 (approximately 128,000 more than calculated under our moderate Rx/capita growth demand scenario), which when compared to our baseline supply projections suggests a shortfall of approximately 157,000 pharmacists in 2020.[51] An expanded role for pharmacists can occur only if a reimbursement mechanism is instituted to pay pharmacists for such services.  The Medicare Modernization Act of 2003 has opened the door for pharmacists to receive reimbursement for medication therapy management services for a select number of high-drug-utilization Medicare beneficiaries.[52]

Women constitute a growing proportion of active pharmacists.  Currently, half of all active pharmacists are women.  By 2020, approximately 62 percent of active pharmacists will be women.  Female pharmacists tend to work fewer hours per year than their male colleagues, so FTE supply will grow at a slightly lower rate than active supply.

Racial minorities continue to be underrepresented in the pharmacist workforce.  In the 2000 Census, 25 percent of the U.S. population indicated they are in a racial minority group, while only 18 percent of individuals self-identified as pharmacists indicated they are in a racial minority group.

The role of pharmacists in the future is closely linked to the adequacy of supply.  Pharmaceuticals are becoming more complex, and with a growing elderly population an increasing number of patients take multiple medications.  Consequently, the demand for counseling and education by pharmacists continues to rise.  The baseline demand projections presented in this report assume that pharmacists will spend an increasing proportion of their time providing counseling and educating patients.  Such a shift in work activities will be made possible by rising pharmacist productivity made possible through greater use of pharmacy technicians and improved technology that reduces the time per prescription spent dispensing and performing administrative duties.

This study focused on the national adequacy of pharmacist supply, although geographic inequities exist in access to pharmacist services.  Consequently, there continues to be a role for programs such as the National Health Service Corps Chiropractor and Pharmacist Loan Repayment Demonstration that uses financial aid as a means to recruit and retain pharmacists in hard-to-employ settings such as rural areas, low-income urban areas, and select Federal institutions such as prisons.

B.  Study Strengths, Limitations, and Areas for Future Research

The findings of this study reflect an extensive review of the literature, empirical analysis, and discussions with area experts.  The major strengths of this study include the following:

  • The pharmacist supply and demand projections come from a workforce model developed based on a wide body of literature regarding the important components of pharmacist supply and demand, as well as empirical research that reflects current trends in supply and demand determinants.
  • The supply projections reflect the recent surge in enrollment and graduations from schools of pharmacy.  This surge is largely in response to the current shortfall of pharmacists (with the resulting rise in wages and job opportunities) and previous studies that suggested the shortfall of pharmacists would continue to grow.  Other components of the supply model have also been updated (e.g., retirement and workforce participation patterns).
  • This study quantifies the projected future demand for pharmacists, whereas most previous work provides only a qualitative assessment of future demand.
  • The Pharmacist Supply and Requirements Model was designed so that frequent updates of supply and demand projections could be made to quickly analyze the implications of changes in supply and demand determinants, as well as analyze the implications of policy decisions affecting supply or demand.

The major limitations of this study include the following:

  • The base year demand for pharmacists is only an estimate, with demand defined as FTE employment plus FTE vacancies.  If the current system is overstretched such that pharmacists are working more hours than is desirable (either from a quality of services perspective or a quality of life perspective), then this definition of current demand might underestimate true demand for pharmacists.  Underestimates of demand in the base year are extrapolated into the future.
  • There is substantial uncertainty regarding changes in some demand determinants—especially regarding technological growth (e.g., advances in biotechnology), growth in the number and role of pharmacy technicians, and the future role of pharmacists.
  • The demand projections are highly sensitive to growth in per capita consumption of pharmaceuticals.  A range of demand estimates were projected to reflect this sensitivity.

Important areas for future research to improve our understanding of the current and projected future adequacy of pharmacist supply include:

  • The potential impact of new technology on pharmacist productivity,
  • The potential impact of advances in biotechnology on individualized drug therapy and the resulting demand for pharmacists,
  • Whether lifestyle changes are leading to patterns of fewer hours worked per pharmacist per year—irrespective of trends in demographics (age and gender) of the pharmacist workforce,
  • The changing role of pharmacists, and
  • The degree to which pharmacy technicians offset the demand for pharmacists and the limits of such substitution before quality is compromised.

As attributed to Mark Twain, “making predictions is risky business, especially when it involves the future.” Over time, trends in pharmacist supply and demand determinants can change.  In addition to the uncertainties regarding technological advances, changes in government policies and programs and changes in insurer approaches to managing prescription drug costs can affect demand for pharmacists.

On the supply side, the number of new graduates might deviate from projected levels if a shortage of faculty threatens the Nation’s ability to train new pharmacists. Furthermore, work patterns can change toward the desire to work fewer hours, and retirement patterns can change.  These uncertainties mean that the accuracy of the supply and demand projections will diminish as the projection horizon increases.  This uncertainty highlights the need to update the projections every few years to reflect changes in policies and trends.

The overall finding of this study is that the Nation appears to have responded to both the current shortfall of pharmacists and predictions of a growing shortfall.  Market forces (e.g., higher wages) and political forces (e.g., increased scope of practice for pharmacy technicians) have helped reduce the shortfall of pharmacists.  Still, the increase in supply will only be sufficient to keep pace with rising demand due to changing demographics.  If a faculty shortfall at schools of pharmacy prevents the planned expansion in the capacity of schools to graduate new pharmacists, or if per capita consumption of pharmaceuticals continues to increase, then the current shortfall of pharmacists could worsen.  Likewise, technological improvements that increase pharmacist productivity and efforts to control growth in consumption of pharmaceuticals could slow the growth in demand for pharmacists to dispense medications, thus increasing the likelihood that pharmacists can play a larger role in counseling patients and providing care management.