Evidence and response to the impact of the Medicaid Drug Rebate Program (OBRA) on hospital pharmacy: a progress report from central Ohio.
Preliminary results of a survey conducted by the American Society of Hospital Pharmacists (ASHP) indicated that hospital drug prices increased since the implementation of rebate agreements between Medicaid and drug manufacturers. The question of how hospital pharmacy directors are planning to respond to the cost-shifting that may occur in the recent future is raised in this article. Open-ended questions posed to Central Ohio Hospital directors assessed their expectations, experience, and proposed strategies in response to the rebate program. The respondents expect increases in drug prices, reductions in discounts for volume purchases, rebate programs, and contract purchases. Increases in the use of special dating on invoice, bundling of contract purchases, shorter time period for guaranteed prices, and shorter dating on invoices are also expected. Using stricter hospital formularies and capitalizing on the negotiating strength of purchasing groups, was the common strategy considered by hospital pharmacies.
Taylor
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Riverside Methodist Hospitals, Columbus, OH 43214.
Kucukarslan
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Sherrin
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D003361:Cost Allocation / Q000639:trends; D003625:Data Collection; D004345:Drug Industry / Q000191:economics*; D005252:Fees, Pharmaceutical / Q000706:statistics & numerical data*; D007356:Insurance, Pharmaceutical Services / Q000458:organization & administration*; D008484:Medicaid / Q000458:organization & administration*; D009820:Ohio; D010607:Pharmacy Service, Hospital / Q000191:economics*; D015397:Program Evaluation; D012051:Reimbursement Mechanisms; D014481:United States