Shared food services: shared personnel, purchasing, and production.
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The formation of an information technology consortium has proven to be a way for several rural hospitals in Northern Minnesota to purchase and successfully install the right technology solutions for their facilities. The concept described is very similar to that used by the Independent Grocer Alliance (IGA), which allows local independent grocers to buy products at prices comparable to these obtained by larger chain stores.
Despite recent scandals at generic drug companies that raised questions about quality and supply, few hospitals have shunned the off-brand products altogether. With stepped-up scrutiny of the industry by the Food and Drug Administration and purchasing groups, hospitals continue to show confidence in generics as a prescription for savings.
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Factors that have affected hospital pharmacy purchasing and inventory control functions are discussed, and future trends are suggested. The concepts of the pharmacy and therapeutics committee and the hospital formulary system stemmed from early hospital pharmacy practice standards that were promulgated about the time drug products began to proliferate. Brand standardization, restricted drug-use policies, and selection of therapeutic alternates are among the approaches P & T committees have devised to hold down hospital drug costs; these efforts will expand. Brand-comparison advertising, use of various incentives to physicians and pharmacists, premarketing publicity about new products, improved product packaging, and support of research studies are among the promotional tactics pharmaceutical manufacturers have employed and are likely to expand. Government legislation and regulations that have had the effect of increasing the cost of drugs may be modified. Hospital pharmacists should monitor developments such as these to prepare themselves for the challenges in their purchasing and inventory control responsibilities.
BACKGROUND: Business coalitions on health-generally nonprofit, community-based membership organizations primarily composed of local employers-attempt to manage the cost and quality of health care delivery. They are also active in other areas, including member education, data collection, and selective contracting. ISSUES: With reference to projects related to public accountability for hospital quality of care, coalitions have been involved in legislative support of state public databases, efforts to develop severity-adjusted information on hospital quality, group purchasing from selected hospitals based on cost and quality-an activity conducted in more than 20 locales, and consumer education. CONCLUSIONS: With health care reform, coalitions will need to shift from looking solely at individual physicians and hospitals to looking at them in the context of managed care. Balancing the tension between continuous quality improvement activities and public accountability will also be an important issue for coalitions. The future of coalitions after health care reform is uncertain, with scenarios ranging from their demise to their expansion as active purchasing coalitions or their assumption of new roles and activities. Whatever the future viability and focus of health care coalitions, they have effectively served as change agents in their communities.