Reducing costs with formulary limitation of H2-receptor antagonists in a community hospital.
Cost containment has become a major issue for all hospital pharmacies. At Carney Hospital, a 366-bed community hospital, where H2-receptor antagonists accounted for 10% of a $1.5 million total drug budget, the search for cost savings led to a move from an open to a limited formulary for the H2-receptor antagonists. Cimetidine and ranitidine, the two most widely used agents of this class, are considered equivalent in terms of safety and efficacy. Prior to formulary limitations, however, most H2-receptor antagonist orders were written for ranitidine, the more expensive agent. Carney Hospital, a member of the Daughters of Charity hospital purchasing group, was able to participate in an advantageous H2-receptor antagonist cost agreement by limiting its formulary to cimetidine. After the first 9 months of the closed formulary program, Carney had realized cost savings of $33,220. At that time, cimetidine accounted for 96% of all parenteral H2-receptor antagonist orders, testifying to physician satisfaction with this agent. Finally, 85% of the parenteral cimetidine orders were written q8h, which was essential to the success of the cost savings program.
Carney Hospital, Boston, MA.
P
P
Coppola
D001900:Boston; D003363:Cost Control; D004358:Drug Therapy / Q000191:economics*; D005572:Formularies, Hospital as Topic; D006635:Histamine H2 Antagonists / Q000627:therapeutic use*; D006745:Hospital Bed Capacity, 300 to 499; D006801:Humans; D010607:Pharmacy Service, Hospital / Q000191:economics*