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Related Experiment Videos

Pharmaceutical management in ProCare Health Limited.

L Malcolm1, M Barry, I MacLean

  • 1Aotearoa Health, Lyttelton. laurence.malcolm@cyberxpress.co.nz

The New Zealand Medical Journal
|August 2, 2001
PubMed
Summary

General practitioners in New Zealand achieved pharmaceutical budget savings through collaborative strategies. Addressing prescribing volume variation offers further potential for cost reduction in primary healthcare.

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Area of Science:

  • Health Services Research
  • Pharmaceutical Management
  • General Practice

Background:

  • ProCare Health Limited is a large independent practitioner association (IPA) in New Zealand.
  • Pharmaceutical expenditure and prescribing patterns are key areas for healthcare management.
  • Understanding variations in prescribing behavior is crucial for cost-effective healthcare delivery.

Purpose of the Study:

  • To review pharmaceutical budget holding and management strategies at ProCare Health Limited.
  • To describe budget holding strategies implemented during 1995/6.
  • To identify prescribing savings achieved and analyze variations in prescribing behavior.

Main Methods:

  • Data from 1994 to 1996 were analyzed for pharmaceutical expenditure against budget and national trends.
  • Analysis considered member and general medical services (GMS) consultations.
  • Prescribing behavior was assessed for variations in per capita and per consultation costs.

Main Results:

  • ProCare implemented a quality-focused pharmaceutical management strategy.
  • Savings against the agreed budget were 9.5% (1996 vs 1995) and 5.7% compared to national trends.
  • Significant variation in per capita and per consultation costs persisted, driven by prescribing volumes, not drug prices.

Conclusions:

  • Collaborative general practitioner (GP) strategies can influence clinical behavior and achieve financial savings.
  • Financial investment in management strategies yielded significant returns.
  • Addressing per capita prescribing volume variation between practices is essential for future healthcare strategy and cost savings.

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