ABC analysis: a tool of effectively controlling pharmaceutical expenditure in Greek NHS hospitals. Issue 3 (26th April 2016)

• Record Type: Journal Article
• Authors: Kastanioti, Catherine; Mavridoglou, George; Karanikas, Haralampos; Polyzos, Nikolaos
• Is Part Of: Journal of pharmaceutical health services research. Volume 7:Issue 3(2016:Sep.)
• Page Start: 173
• Page End: 179
• Publication Date: 2016-04-26
• Subjects: ABC analysis -- expenditure -- Greek NHS Hospitals -- pharmaceuticals; Pharmacy -- Research -- Periodicals; Drugs -- Research -- Periodicals; Medical care -- Research -- Periodicals; Public health -- Research -- Periodicals; Pharmaceutical industry -- Periodicals; Health Services Research -- Periodicals; Economics, Pharmaceutical -- Periodicals; 615.1072
• DOI: 10.1111/jphs.12137
• Languages: English
• ISSNs: 1759-8885

Abstract

Abstract: Objectives: The technical cost analysis, in order to highlight expensive medicines, is an important factor in the administration of health units. The purpose of the study is to analyse the annual pharmaceutical expenditures in NHS hospitals and to investigate the therapeutic categories requiring greater supervisory, for years 2013–2014. Methods: The study was conducted at 19 public hospitals (9900 beds) and the data of annual consumption and expenditure incurred on each medicine using ATC classification were collected via observe.net web system and then arranged in descending order based on the Pareto principle. Key findings: ABC analysis revealed that 21% (J, B, L) items (at ATC-1 level) represented class A amounting for nearly 80% (91 150 641 euros) of annual NHS pharmaceutical expenditure. Furthermore, approximately 9% (30) items (at ATC-4 level) represents class A, accounting for nearly 70% of annual pharmaceutical expenditures for year 2013, and 11% of items are responsible for nearly 80% of cumulative ADE for year 2014. Conclusions: The inventory control is an effective measure for cost management of pharmaceutical expenditure by identifying the drugs requiring stringent control for rational use of funds in public hospitals.