Pharmacy Fact Sheets

Pharmacists - Making a Difference! ...On Healthcare Costs

Misuse of drugs is not only a major health concern, it is a major economic concern. Conservative figures estimate the costs of medication misuse to Canada's health care system, to be in the range of $7 - $9 billion per year.'1' Cost benefit analyses from studies conducted in various health care settings, have shown cost-benefit ratios from 1:6 to 1:25, suggesting that for every $1 spent on a pharmacist's services, between $6 - $25 in hospital costs were saved or avoided.'2-5'

Can pharmacists really make a difference?

Numerous studies have shown that a pharmacist can help achieve maximum health outcomes for the lowest possible cost to the system.'2' When pharmacists were actively involved in direct patient care and drug use programs, the following results were reported:

decreased hospital admissions
decreased institutional length of stay
decreased physician or clinic visits
decreased drug costs

How do pharmacists help in cost-containment, and drug-use management?

The pharmacist:

decreases overall health care costs by focusing on optimal medication use, avoidance or minimization of problems related to drug therapies, and achievement of desired patient outcomes
provides specialized services to specific patient groups (asthma, hypertension) to optimize medication use and outcomes. In turn, this process helps in decreasing office, hospital and emergency room visits
provides education to physicians on appropriate prescribing for specific diseases to ensure appropriate utilization of high cost drugs
implements programs to enhance adherence to specific prescribing guidelines to optimize medication use
develops and implements programs to promote use of outpatient therapy and monitoring thus resulting in decreased institutional admissions and/or length of stay

Research has shown that pharmacist interventions are reflected in both direct and indirect cost-savings. The greater the availability of the pharmacist, the greater the return in investment.

References

Coambs RB et al. Health Promotion Research. Review of the Scientific Literature on the Prevalence, Consequences, and Health Costs of Noncompliance & Inappropriate Use of Prescription Medication in Canada. University of Toronto Press, 1995
McLean WM. Pharmaceutical Care Evaluated: The Value of Your Services. CPJ 1998; 131(4): 34-40
Ogle BG, McLean WM, Poston JW. The Clinical Pharmacy Services Study. Can J Hosp Pharm 1996; 49:1:S5-S25
Condron JH, Mann JL. Drug Utilization and Therapeutic Intervention Programs; Pharmacy Services that Pay for Themselves. Can J Hosp Pharm 1994; 47:203-208
Schumock GT, Meek PD, Ploetz PA, Vermeulen LC. Economic Evaluations of Clinical Pharmacy Services - 1988 - 1995. Pharmacotherapy 1996; 16(6): 1188-1208