Antimicrobial formulary management: a consultant's perspective

Health care administrators are concerned with the need for cost containment, including how pharmacies may contribute to cost savings. They also must be aware of how quality assurance activities and cost containment are related. Various techniques are available for reducing antibiotic costs, such as formulary alternatives, improving pricing, use of guidelines, controlling dosage frequency and strength, and converting from intravenous to oral route of administration. Two kinds of savings are involved: soft and hard. Soft savings are usually not real in the sense that overall hospital expenses will probably not be reduced as a result of implementing change. Hard savings will increase a hospital's profits and reduce expenses as a result of the intended change.