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Monetary incentive for pharmacists to control drug costs
American Journal of Hospital Pharmacy
|July 1, 1985
Summary
Hospital pharmacists received monetary incentives for cost savings on drug and i.v. expenses. This program helped control expenses while maintaining quality of care.
Area of Science:
- Health Economics
- Hospital Pharmacy Management
Background:
- Hospitals face increasing pressure to control pharmaceutical expenses.
- Pharmacy departments are key to implementing cost-saving strategies.
- Rewarding staff can enhance the effectiveness of cost-containment initiatives.
Purpose of the Study:
- To describe a monetary incentive program for hospital pharmacists.
- To evaluate the program's impact on drug and intravenous (i.v.) expenses.
- To assess the program's effectiveness in cost control and staff motivation.
Main Methods:
- A program was implemented paying pharmacists a percentage of savings on drug and i.v. expenses.
- Incentive calculations were based on expenses saved relative to budget.
- A screening mechanism prevented payouts if total expenses exceeded budget.
Main Results:
- In fiscal 1984, drug and i.v. expenses per adjusted case decreased by 1.55%.
- Full-time pharmacists received an average payout of $500.
- Payouts were lower than anticipated due to increased intensive-care patient influx during a nursing strike.
Conclusions:
- Monetary incentive programs can be effective tools for controlling hospital drug and i.v. expenses.
- Such programs reward pharmacists for successful cost-saving strategies.
- Careful program design and screening mechanisms are crucial for success.