Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2006.Includes bibliographical references (leaves 50-53).Medication non-adherence is one of the most costly and difficult problems in healthcare today. In the United States alone, half of the 3.5 billion prescriptions dispensed are not taken as prescribed, costing our healthcare system an estimated 100billion.Tenpercentofallhospitalizationsand125,000deathseachyearareattributabledirectlytononβadherencetomedicines.Medicationnonβadherenceisacomplex,multiβfacetedproblemandpotentialwaystoincreaseadherencetomedicationstraditionallyhavefocusedonthephysicianβpatientrelationship.However,medicationdispensingrequiresanadditionalinteractionbetweenthepharmacyandpatient,andproperlyβincentivizedpharmaciesemployinguniqueadherenceprogramsmaybecapableofenhancingadherenceaboveandbeyondexistingmethods.Thisthesisexploreshowtraditionalchainandindependentdrugstorepharmacies1)prioritizemedicationadherence;and2)maybenefitfrominstitutingmedicationadherenceprograms.Thehypothesistestedwasthatpharmacieswouldbenefitsubstantiallyfrominstitutingadherenceprograms.(cont.)Datafrominterviews,companyfinancialsandindustryreportswereusedtoquantifyavaluepropositionforthedrugstorepharmacy.Interviewsrevealedastrongdisconnectinemphasisplacedonmedicationadherencebetweenpharmacyschools(strongemphasis)versuspharmacies(moderatetoweakemphasis).Withinsubgroupsofpharmacies,chainandindependentdrugstorepharmaciesplacedlowerpriorityonmedicationadherencecomparedwithspecialtyandhospitalpharmacies.Datacollectedforthisthesisalsoindicatedthata251.7 M and annual gross profits by over $400,000. These findings indicate that an untapped opportunity exists for drugstore pharmacies to boost revenue by investing in technologies and services to increase medication adherence.by Murat V. Kalayoglu.M.B.A