Related Experiment Videos
Determining the differences among cost savings, cost avoidance, and cost reduction.
1Ohio State University, Columbus, USA.
Pharmacy Practice Management Quarterly
|April 5, 2000
Summary
Universally accepted definitions are needed to measure cost savings, cost avoidance, and cost reduction from clinical pharmacy services. Current literature shows controversy, hindering uniform evaluation of these important financial impacts.
Area of Science:
- Health Economics
- Pharmacy Practice
- Clinical Outcomes Research
Background:
- Measuring the financial impact of clinical pharmacy services is crucial for demonstrating value.
- Existing literature lacks standardized definitions for cost savings, cost avoidance, and cost reduction.
- This ambiguity complicates the accurate assessment of pharmacy interventions.
Purpose of the Study:
- To analyze articles that quantified cost savings, cost avoidance, or cost reduction related to clinical pharmacy services.
- To provide recommendations for the appropriate use of these financial terms.
- To highlight the need for standardized definitions in this field.
Main Methods:
- Systematic review and analysis of 44 articles.
- Evaluation of how cost savings, cost avoidance, and cost reduction were defined and applied.
- Identification of inconsistencies and controversies in the literature.
Main Results:
- Significant controversy exists in the literature regarding the definitions and application of cost avoidance and cost reduction.
- Many studies use these terms without clear, consistent definitions.
- Recommendations were developed to guide the appropriate use of these financial metrics.
Conclusions:
- There is a critical need for universally accepted definitions for cost savings, cost avoidance, and cost reduction in clinical pharmacy.
- Standardized definitions will enable more consistent and reliable research on the financial value of pharmacy services.
- Future research should adopt uniform terminology for accurate financial impact assessment.