Healthy Skepticism Library item: 7651

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Publication type: Journal Article

Trimble LT, Ashby DM, Geize SB, Thomasset KB.
Cost-benefit analysis of indigent care programs for inpatients in a large academic medical center
ASHP Summer Meeting 2003; 60:

Abstract:

Indigent care programs (ICP) are pharmaceutical manufacturer sponsored initiatives that provide medications to eligible patients at no or reduced cost. Many institutions have utilized pharmaceutical ICP for outpatient medications. Since funding from federal, state and local governments becomes limited or fixed, providers are paying more for drug expenditures. This, compounded by increasing developments in pharmaceutical services, increases the overall costs of drug therapy. As costs associated with prescription medications and the number of indigent patients increases, providers are under pressure to develop solutions to rising drug costs. At an institution that services a large indigent patient population, a potential benefit may be seen from utilizing indigent care programs for in-patients. This research assessed the net benefit of implementing a program to utilize ICP for in-patients. Pharmaceutical cost data was collected by obtaining a list of the most costly pharmaceuticals by volume of use and individual cost. Pharmaceutical manufacturers associated with the particular pharmaceuticals were contacted to determine availability of ICP for inpatients. From inpatients identified that were unable to pay, medication use during their stay was compiled and medications matching on the list of high cost pharmaceuticals were determined. Based on the pharmaceutical companies eligibility criteria and medications utilized, a cost savings was calculated for a subset of patients. Based on this subset of patients, an estimate of potential cost savings for one year for the institution was calculated. From these findings, a cost-benefit analysis was completed to assess the feasibility of implementing a program to utilize ICP for inpatients.