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Cost-benefit and cost-effectiveness: methodologies for evaluating innovative pharmaceutical services.

Cost-benefit and cost-effectiveness analysis techniques which can be of assistance in the evaluation of innovative pharmaceutical services are reviewed. Process and outcome measures are considered, and suggested steps in a cost-benefit study are presented. Samples of pharmacy studies using these techniques are appraised. Possible measures for benefits and costs along with literature references for evaluations of innovative pharmaceutical services are presented. Areas of pharmaceutical service discussed are ambulatory patient consultation, unit dose drug distribution, drug information services, monitoring drug therapy in acute care and long-term care, parenteral admixture services, patient and therapy responsibilities, patient discharge interviews, patient drug histories and profiles, and personnel substitutions. Although there have been several encouraging reports on the cost-benefit of pharmaceutical services, more evaluative research is needed to develop programs which maximize the benefit-to-cost ratio to society.

Cost-Benefit Analysis↗

Decentralization of pharmaceutical services without satellite pharmacies.

The decentralization of pharmaceutical services without the addition of pharmacy satellites is described. Mobile, master medication carts are used by pharmacy personnel in the patient-care areas to fill the unit dose carts used by nurses. A combination medication administration record and patient profile eliminates duplication of effort by pharmacy and nursing. Responsibilities of pharmacists and technicians, the process of hospital-wide implementation of the system, current levels of service, and a clerkship designed to improve staff pharmacists' clinical abilities are described. The ratio of the number of drug doses administered to the number of drug doses handled per patient-day increased after the implementation of the new system. This indicated that individual doses were handled fewer times by pharmacy personnel. This method of decentralization permitted integration of distributive and clinical pharmaceutical services with a minimal personnel cost increase, no additional space requirements nor expenditures for renovation, and only a small cost for master medication carts. Because the pharmacists work in the patient-care areas, they are in more frequent contact with nurses, physicians and patients.

Costs and Cost Analysis↗

Relationship between hospital pharmacists' job satisfaction and involvement in clinical activities.

Job satisfaction among hospital pharmacists employed by a national hospital pharmacy management company was measured by using a mail questionnaire. A previously validated survey that measured pharmacists' job satisfaction was adapted for use in this study. Additional questions determined the pharmacist's clinical pharmacy training and participation in clinical pharmacy services. Questionnaires were mailed to all full-time hospital pharmacists employed by the pharmacy management company. Of the 606 mailed, deliverable questionnaires, 354 usable responses were returned, for a response rate of 58.4%. The respondent hospital pharmacists' level of job satisfaction showed a positive association with clinical pharmacy involvement. Of the nine items in the questionnaire that measured the pharmacists' involvement in clinical pharmacy services, seven items showed a positive relationship between involvement in that clinical activity and job satisfaction. Mean job satisfaction increased as the percentage of time spent performing clinical pharmacy activities increased. Job satisfaction decreased as time spent performing distributive functions increased. The percentage of time hospital pharmacists were engaged in clinical activities was significantly associated with job satisfaction.

Adult↗

ASHP national survey of hospital-based pharmaceutical services--1992.

The results of a national mail survey of pharmaceutical services in community hospitals conducted by ASHP during summer 1992 are reported and compared with the results of earlier ASHP surveys. A simple random sample of community hospitals (short-term, nonfederal) was selected from community hospitals registered by the American Hospital Association. Questionnaires were mailed to each director of pharmacy. The adjusted gross sample size was 889. The net response rate was 58% (518 usable replies). The average number of hours of pharmacy operation per week was 105. Complete unit dose drug distribution was offered by 90% of the respondents, and 67% offered complete, comprehensive i.v. admixture programs. A total of 73% of the hospitals had centralized pharmaceutical services. Some 83% provided services to ambulatory-care patients, including clinic patients, emergency room patients, patients being discharged, employees, home care patients, and the general public. A computerized pharmacy system was present in 75% of the departments, and 86% had at least one microcomputer. More than 90% participated in adverse drug reaction, drug-use evaluation, drug therapy monitoring, and medication error management programs. Two thirds of the respondents regularly provided written documentation of pharmacist interventions in patients' medical records, and the same proportion provided patient education or counseling. One third provided drug management of medical emergencies. One fifth provided drug therapy management planning, and 17% provided written histories. Pharmacokinetic consultations were provided by 57% and nutritional support consultations by 37%; three fourths of pharmacist recommendations were adopted by prescribers. A well-controlled formulary system was in place in 51% of the hospitals; therapeutic interchange was practiced by 69%. A total of 99% participated in group purchasing, and 95% used a prime vendor. The 1992 ASHP survey revealed a continuation of the changes in many hospital-based pharmaceutical services documented in earlier surveys (e.g., growth in clinical services, ambulatory-care services, computerization) and identified static areas that merit the attention of pharmacy leaders (e.g., provision of complete, comprehensive i.v. services).

Adverse Drug Reaction Reporting Systems↗

Health plan budget impact analysis for pimecrolimus.

OBJECTIVE: Budget impact models are useful tools for managed care organizations to make drug formulary decisions. The objective of this study was to estimate the incremental budgetary change in per-member-per-month (PMPM) medical and pharmacy costs for atopic dermatitis (AD) or eczema after the introduction of pimecrolimus cream 1%, a topical calcineurin inhibitor. METHODS: Estimates of the percentage of patients seeking care, treatment patterns, and quantities of medications dispensed for AD were measured using 2001 and 2002 medical and pharmacy records in a proprietary database for health plans distributed throughout the United States. Approximately 2.5 million health plan members had continuous health insurance coverage during the study period. Costs for medications were assigned using the 2003 wholesale acquisition cost, and costs for physician visits were based on average 2003 Medicare reimbursement rates. Efficacy data from clinical trials were used to model the impact of pimecrolimus on subsequent physician visits. Sensitivity analyses were performed to evaluate the impact of varying the percentage of patients seeking care, practice patterns, medication quantities, percentage of pimecrolimus users, and levels of patient cost sharing. RESULTS: The estimated percentage of health plan members seeking care for AD in 2001 was 3.2%. The estimated total cost PMPM for AD treatment prior to introduction of pimecrolimus was 0.362 dollars for all covered lives, assuming no patient cost sharing. In the year after its introduction, 5.2% of the AD population filled a prescription for pimecrolimus. The incremental increase in pharmacy benefit cost was 0.008 dollars PMPM in 2003 dollars, but the total incremental medical and pharmacy cost was 0.002 dollars PMPM after accounting for the projected reduction in physician visit costs, representing a 0.7% increase in all AD-related costs. Based on sensitivity analyses, the incremental total cost PMPM after the introduction of pimecrolimus ranged from -0.004 dollars to 0.026 dollars. CONCLUSION: Using claims data for the medical treatment of AD in 2001-2002 and the utilization of pimecrolimus, the addition of pimecrolimus as a treatment option for AD had a minimal impact on PMPM costs for AD-related care in 2003 dollars. As with all pharmacoeconomic models, health plans should perform their own budget forecasting using assumptions derived from their own pharmacy and medical claims data.

Budgets↗

Improving pharmacy supply-chain management in the operating room.

Anesthesia services can account for a significant portion of a healthcare organization's costs. Deaconess Hospital of Evansville, Indiana, used a collaborative, multidisciplinary effort to implement process improvements that yielded significant cost savings while improving patient care. Shifting responsibility for drug distribution from the operating room (OR) nurses to a pharmacist, the hospital established a satellite pharmacy service for the OR. As a result, the hospital was able to improve control of drug distribution and record-keeping, reduce turnaround time for medication preparation, lower its medication charge error rate, and increase the percentage of surgeries that start on time. The success of the OR satellite pharmacy led the hospital to expand satellite pharmacy services to labor and delivery, the cardiac cath laboratory, and the intensive care units.

Anesthetics↗

National supply-chain survey of drug manufacturer back orders.

The impact of manufacturer back orders on the supply chain for pharmaceuticals in the institutional setting was studied. A questionnaire was distributed during May and June 2000 to 600 institutional pharmacies affiliated with a major national drug and supply group purchasing organization. The instrument included questions on basic institutional demographics, perceptions about the frequency of manufacturer back orders for pharmaceuticals, the quality of communication with manufacturers and wholesalers about back orders, the two most significant back orders that had occurred in the 12 months preceding the survey, and the reasons for and impact of back orders. A total of 170 usable surveys were returned (net response rate, 28.3%). Reported manufacturer back orders included an array of drug classes, including blood products, antimicrobials, antiarrhythmics, benzodiazepine antagonists, thrombolytics, corticosteroids, and antihypertensives. Respondents perceived significant back orders as increasing in frequency. Communication by manufacturers and wholesalers about back orders was reported to be relatively poor. A raw-material shortage was the most common reason given by manufacturers for back orders (36.5%), followed by a regulatory issue (23.2%). In most cases (92%), medical staff members had to be contacted, indicating an interruption in the normal drug distribution process. In over a third of instances, respondents stated that the back order resulted in less optimal therapy. A survey found that manufacturer back orders for pharmaceuticals were increasing in frequency and that information flow within the supply chain was insufficient to meet the needs of end users.

Commerce↗

Comparison of Department of Veterans Affairs pharmacy services in 1992 and 1994 with strategic-planning goals.

Data were collected from Department of Veterans Affairs (VA) medical center pharmacies in 1992 and 1994 to measure progress toward implementation of the VA 1990 strategic plan. A questionnaire was pretested and mailed to pharmacy chiefs at all 173 VA medical centers (VAMCs) with pharmacies in 1992. The same questionnaire, with slight modifications consistent with revision of the strategic plan, was mailed in 1994. Usable responses were received from more than 80% of VAMCs in both years. The number and types of activities, services, and staffing at VAMC pharmacies varied with respect to automation, procurement, drug accountability, image, participation in professional organizations, professional role, pharmaceutical care activities, technicians, and research and education. Compared with the 1992 results, the 1994 results indicated greater pharmacist involvement in patient-education activities, expanded roles for pharmacists in monitoring anticoagulation therapy and in pharmacokinetic services, and less use of pharmacists for distributive functions. In 1994, more facilities reported having an open pharmacy concept in place to encourage direct patient care initiatives. VAMCs reported greater involvement in pharmacy education in 1994 than in 1992, with more VAMCs having affiliations with pharmacy schools and clerkship and residency training programs. Responses indicated considerable variation among VAMC pharmacies in the number and types of services provided.

Hospitals, Veterans↗

"Doi moi" and private pharmacies: a case study on dispensing and financial issues in Hanoi, Vietnam.

Vietnam, a developing country, has had comparatively good health and human survival at low cost. The economic reform changed the health care system, and private pharmacies during the last 5 years have taken over a majority of the drug distribution. Problems include weaknesses in drug regulation and reported increases in antibiotic resistance. This case study, a purposive sample of two private pharmacies in Hanoi, explored management, including dispensing, inventory and financing, using the concept of triangulation. Observations and interviews of customers were complemented by stock inventory and interviews of the pharmacy staff. Drugs were classified according to the ATC code and the essential drug list of Vietnam. Pretested protocols were used. In all 1833 encounters were studied during the 2 weeks, out of which 286 were children. Less than 1% of customers came with prescriptions and 94.9% decided by themselves which drugs to buy. Antibiotics represented 17%, of which 90% were broad spectrum. Ampicillin dominated, both in children and adults. Some 50% of the antibiotics were given for 2.5 days or less. Less than 50% of the drugs were essential drugs (ED) on dispensing and even less on inventory. Antibiotics and vitamins were the most commonly sold drugs and, overall, brand names dominated. Little if any drug information was observed. Antibiotics were said to represent the most profitable drugs, according to the pharmacy staff. More than 20% of all products were combination drugs, including irrational and popular products with antibiotics and corticosteroids and combinations of aspirin, phenacetin and caffeine. This study shows an unexpectedly high proportion of customers, being "Tu Lam Bac Sy" (their own doctors), deciding themselves which drugs to buy. Although the "Doi moi" renovation has led to much improved drug availability, at least in urban setting, our case study highlights major problems in need of urgent actions. In particular the prevailing practices regarding antibiotics and combination drugs need to be seriously scrutinized and drug regulatory mechanisms should be enforced.

Adolescent↗

Access to community pharmacies by the elderly in Illinois: a geographic information systems analysis.

Community pharmacies play an important role in maintaining population health in the United States. They are large in number, distribute widely across geographic areas, and operate for long hours. Because the elderly population tends to use more medications and have more frequent interaction with pharmacies and pharmacists, this study was carried out to understand the geographic access to community pharmacies by the elderly in Illinois and to estimate the disparity in the access between rural and urban areas. The addresses of all community pharmacies operating in 2001 were geocoded to identify their locations. The Census 2000 data on demographics at the census block group level was used to estimate the geographic distribution of the Illinois population by age group. Using the centroid of each census block group and the locations of community pharmacies, the distance to a nearest pharmacy for each census block group was calculated. The distance was then weighted to compute the aggregated distance required for the elderly to access a pharmacy. There were 1373 community pharmacies operating in Illinois in 2001. Most pharmacies (93.8%) were located in urban areas. On average, there were 1.27 and 0.38 pharmacies per 10,000 people in urban and rural areas, respectively. The average distance for an elderly person in Illinois to locate a community pharmacy was 0.9 miles in urban areas, but it was six times more (5.9 miles) in rural areas. At least 10% of the rural elderly had to travel more than 11.8 miles to find a community pharmacy, but only 0.1% had to travel more than 20 miles. The geographic access to community pharmacies appears to be appropriate in Illinois. However, a small portion of rural elderly who do not have a pharmacy in their nearby areas may warrant special attention.

Aged↗

Excellence in the management of clinical pharmacy services.

Differences in the management of clinical versus nonclinical pharmaceutical services, unique aspects of managing clinical services, and management challenges for the 1990s are described. In nonclinical practice, pharmacists are located in the central pharmacy and have limited contact with physicians and nurses; managers focus on drug procurement, distribution, and accountability. A clinical program takes pharmacists to the patient's bedside and into more inter-professional contact; the management of a clinical pharmacy service is measured by the benefits received by patients, physicians, and nurses and by the job satisfaction of the pharmacists. Management of a clinical program requires (1) recognition of the potential for drugs to cause harm and commitment to pharmacists' responsibility for ensuring appropriate clinical outcomes, (2) analysis of the hospital and how clinical services can best be provided there, (3) obtaining resources to establish or gain access to a drug information service, (4) developing resources and support for a pharmacokinetics service, (5) for a pharmacokinetics service, (5) designing efficient distribution systems supported by automated applications and an adequate technician staff, (6) developing a pharmacist staff that will gain physicians' and nurses' support for clinical programs, (7) developing an organized approach to keeping staff members up to date on new drugs and technology and assisting them in sharing this knowledge with physicians and nurses, (8) demanding and ensuring the quality of the clinical performance of each pharmacist, (9) documenting and evaluating the cost-effectiveness of services provided, and (10) recruiting and retaining good pharmacists and technicians.(ABSTRACT TRUNCATED AT 250 WORDS)

Attitude↗

Analysis of drug information questions on a decentralized pharmacy service unit.

The pharmaceutical services at Rhode Island Hospital integrate the decentralized distribution role of the pharmacist with the provision of patient-specific drug information. This service is backed up by a Drug Information Center (DIC). A study to analyze the inquiries addressed to pharmacists assigned to a decentralized unit (PSU) was conducted over a 30-day period. The survey tabulated what kind of requests were made, if they could be answered with the information available on the patient care unit, and what action was taken as a result of the information provided. When the requests were categorized according to the type of information, the PSUs and the DICs top three categories were the same. Only 3.8% of the requests for information on the PSU could not be answered using the references available on the unit. Fifty one per cent of the requests received by the PSU were acted upon by the inquirer exactly according to the information provided by the pharmacist.

Drug Information Services↗

When should pharmacists visit their wards? An application of simulation to planning hospital pharmacy services.

This paper reports a pilot study of the use of simulation in planning hospital pharmacy services. The objectives were to create a simulation model of the hospital drug distribution system, to use the model to investigate a simple problem and to assess the potential for simulation to aid decision making in hospital pharmacy management. The problem chosen for investigation focused on the UK ward pharmacy system, where a pharmacist visits each ward daily to initiate the supply of newly prescribed non-stock medication. A simulation model was used to investigate how changing the time of the ward pharmacist's visit could affect the mean time delay between the prescription of a non-stock drug and the arrival of that drug on the ward. The simulation results suggest that the time of day at which pharmacists visit their wards can have a major impact on delay times, and that the relative benefit of different visit times is likely to vary between wards. Simulation was found to be a useful approach to investigating different service alternatives without the expense and disruption of assessing each in practice.

Computer Simulation↗

A comparison of the practices used for distribution of controlled substances in Massachusetts hospitals with those reported nationally.

A survey questionnaire concerning the procedures used to distribute controlled substances was mailed to 100 randomly selected Massachusetts hospital pharmacies. The tabulated results were compared to a similar study surveying 285 short-term medical and surgical hospitals nationwide. Of the 58 responding hospitals, 47 (81%) reported controlling either all or some Schedule III Controlled Substances in a manner similar to that used for the distribution and accountability of Schedule II drugs. A total of 42 (72%) reported maintaining the same systems for Schedule IV agents. In contrast, only 24 (42%) of those respondents reported controlling Schedule V drugs in a manner similar to Schedule II Controlled Substances. Similar to the findings of a nationwide study, many of the responding Massachusetts hospitals reported selective inclusion of those Schedule III, IV, and V drugs possessing an increased risk of illicit diversion into a more controlled distribution system. In conclusion, many Massachusetts hospitals distribute and account for controlled substances in a manner similar to that used nationwide.

Drug and Narcotic Control↗