| Description |
The studies reported to date all attempted to document cost savings achieved through use of specific purchasing techniques or by restriction of high-dollar value drug products. No study has attempted to measure the combined effects of formulary implementation and group purchasing affiliated, or attempted to measure cost savings for low-dollar value drug products. The present study evaluated the effects of a closed formulary system and group purchasing on cost containment at Holy Cross Hospital, a 343 bed, private, non-profit community hospital located in Salt Lake City, Utah. On March 12, 1979, a generic, closed formulary system was adopted by the hospital. On April 11, 1979, the pharmacy and therapeutics committee approved affiliation, via the Utah Hospital Association, with the Intermountain Health Care Group Purchasing Program. Contracts with this group purchasing system begin July 1 of each year. The first objective of this study was to compare on a per dose or per gram basis the purchase costs of those drugs that remained on the formulary (formulary drugs), and those drugs that were removed from the hospital after implementation of the formulary (non-formulary drugs). The second objective of this study was to measure, by use of price and value indexes, the combined effects of formulary implementation and group purchasing on purchase costs and purchase volume. Four therapeutic categories were analyzed: antihistamines and decongestants, antitussives, antacids, and topical corticosteroidal creams and ointments. |
