What does "cost avoidance" refer to in pharmacy management?

Cost avoidance in pharmacy management refers to strategies that are specifically designed to reduce future healthcare costs. This concept involves identifying and implementing programs or interventions that prevent unnecessary expenses, such as hospitalizations or complications that arise from unmanaged health conditions. By doing so, pharmacies can contribute to better patient outcomes and lower overall healthcare spending.

For example, initiatives such as medication therapy management, patient education, or preventative care can help avoid costs associated with adverse drug reactions or lack of adherence to treatment regimens. By focusing on these forward-thinking strategies, pharmacy management plays a significant role in the overall healthcare system's efficiency and effectiveness, ultimately benefiting both patients and insurance plans.

The other choices do not accurately describe the concept of cost avoidance. Reducing operational costs of pharmacies primarily pertains to internal efficiency rather than future healthcare expenditures. Strategies to increase drug prices are contrary to the idea of cost avoidance, as they would lead to higher spending rather than preventing it. Tax deductions related to medication sales are also unrelated, focusing instead on financial benefits rather than strategies aimed at proactive cost management in healthcare.