Formulary system controversies in the new environment of DRGs

The currently rapid growth in the hospital industry is expected to continue. The massive increase in the aged population in the US, resulting in a shift from acute to chronic care, will also result in changes in reimbursement strategies. These changes, as well as structural changes in the health care system (HMOs, multihospital systems, PPOs, and so on), will have a profound impact on the way in which the P & T Committee functions. Contemporary management of drug distribution systems is essential in order to maintain financial viability within institutions. Implications for the role of P & T Committees in the future are discussed.