Formulary management to reduce cost: P & T committee strategies

The hospital pharmacy can achieve cost reductions through a variety of means. These include controlling personnel costs, conducting systems and facilities design analyses, operating shared services, controlling inventory, and assisting the P & T Committee in implementing and operating a hospital formulary system. The type of formulary system within an institution and the effectiveness of the P & T Committee both influence cost saving programs in acquiring and dispensing therapeutic agents. Strategies effective in developing a workable formulary and ways in which the P & T Committee can encourage cost-effective drug acquisition and use are outlined.