Cost savings through formulary implementation and group purchasing in four therapeutic categories.
The effects of implementing a closed formulary system and group purchasing in a 343-bed, private, nonprofit community hospital were evaluated by use of price and value indexes. Four therapeutic categories were analyzed: antihistamines and decongestants, antitussives, antacids, and topical corticosteroidal creams and ointments. Overall savings in the four therapeutic categories evaluated totaled $681.33. The findings indicated differences in cost may exist between formulary and nonformulary drugs, but the direction and magnitude of that difference vary with the therapeutic category. The impact of group purchasing affiliation on overall purchase cost is discussed and additional cost-control methods are presented.
D003365:Costs and Cost Analysis; D005572:Formularies, Hospital as Topic / Q000191:economics*; D006745:Hospital Bed Capacity, 300 to 499; D011682:Purchasing, Hospital / Q000191:economics*; D014589:Utah