Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Use of cost-consequence models in managed care

H F Blissenbach1

  • 1Diversified Pharmaceutical Services, Minneapolis, Minnesota, USA.

Pharmacotherapy
|September 1, 1995
PubMed
Summary

Pharmacy benefit managers should consider total treatment costs, not just drug prices. Analyzing value (outcomes/cost) can optimize formulary decisions and improve patient care.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

An industry in evolution.

Medical interface·1995
Same author

Medical committee enforcement of policy limiting postsurgical antibiotic use.

American journal of hospital pharmacy·1984
Same author

Patient drug self-administration improves regimen compliance.

Hospitals·1978
See all related articles

Area of Science:

  • Health Economics
  • Pharmacoeconomics
  • Pharmacy Management

Background:

  • Pharmacy benefit managers (PBMs) aim to procure medications at the lowest cost.
  • Current formulary decisions balance therapeutic necessity with drug price.
  • Focusing solely on drug price may overlook potential long-term cost savings.

Purpose of the Study:

  • To evaluate the impact of considering total medical costs on formulary decisions.
  • To explore the concept of value-based drug formularies.
  • To determine if more expensive drugs can lead to lower overall healthcare expenditures.

Main Methods:

  • Analysis of direct and indirect medical costs associated with different drug choices.
  • Application of the value equation (Value = Outcomes/Cost) to drug selection.
  • Review of community practice patterns and pricing in formulary decisions.

Main Results:

  • Higher drug costs may result in lower total direct medical costs when the entire medical picture is considered.
  • Information on total treatment cost differences enhances therapeutic decision-making.
  • Value assessment is crucial for payers deciding between drugs with different price points.

Conclusions:

  • Formulary decisions should incorporate comprehensive cost-effectiveness analysis.
  • An outcome-based drug formulary, informed by total treatment costs, can guide better therapeutic choices.
  • Demonstrating value (outcomes relative to cost) is essential for justifying higher drug expenditures.

Related Experiment Videos