Evaluating the cost effectiveness of newer psychotropic medications

With the introduction of newer, more expensive psychotropic medications, pharmacists must consider the cost-effectiveness issues related to the use of these drugs. In general, the newer agents are more effective than conventional drugs, have improved side-effect profiles, and are associated with a lower rate of recidivism. However, because of cost constraints, not every patient who needs a newer psychotropic drug has the opportunity to receive it. To provide these patients with the medication they need, we must look beyond the acquisition cost of the drug and focus on the global impact of the medication on the total mental health budget at a facility. Data from this point of view can justify the greater expense of the medication, and more importantly, the patient can be better served. Cost-effectiveness data from one's own institution may be more convincing to formulary committee members than data from academic centers and can help make newer, more expensive agents available to the patients who need them. Designing and implementing a retrospective study is one means of obtaining these cost-effectiveness data.