1. Economic analysis of a medication assistance program for ambulatory care patients at an urban teaching clinic.
- Author
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Gillespie EL, Patel AA, Henyan NN, Sander S, White CM, and Coleman CI
- Abstract
Objective: Pharmacy-managed medication assistance programs (MAP) have the potential to recoup losses incurred by the pharmacy department, but whether this offsets the personnel cost of the program has not been well-established. The purpose of this study was to conduct a cost-benefit analysis of the pharmacy-managed MAP at an urban teaching clinic at Hartford Hospital in Hartford, Conn. Methods: Patients were enrolled into a MAP at Hartford Hospital, a large urban teaching hospital, based on referrals from social workers. Patients were assisted in identifying pharmaceutical manufacturers providing free drugs and completing applications. The program's benefit was defined as the value of the drugs procured using average wholesale price (AWP) in 2005 US dollars. The costs to the pharmacy consisted of personnel cost (time administering the program times a wage rate of $18.02/h). The net benefit was calculated as the value of the drugs procured minus personnel costs. Threshold sensitivity analysis and Monte Carlo simulation were performed by varying drug value, personnel time, and wage rate. Results: Over the 24-month period (May 2003 through April 2005), 143 patients were enrolled into the program, with 328 medication shipments received. The total benefit for all drugs was $83,504. An average of 4 h/wk were spent administering the program, resulting in personnel costs of $7,496. The program yielded a net benefit of 576,008. Upon sensitivity analysis, the break-even point was reached when the drug value was reduced to 57,496, personnel lime increased to 4,634 hours (44.5 h/wk), or the wage rate increased to $200/h. When the value of the drug procured, personnel time, and wage rate were simultaneously varied within plausible ranges ($68,175-$171,584, 2 h/wk-40 h/wk, and $13.65/h-$43.60/h, respectively), Monte Carlo simulation demonstrated there was a 96.1% chance of the program being cost-beneficial. Conclusion: This study demonstrated that Hartford Hospital's pharmacy-managed MAP for indigent inpatients was cost-beneficial. The conclusions of the study were found to be robust to changes in drug value, personnel time, and wage rate. [ABSTRACT FROM AUTHOR]
- Published
- 2006