The Profitability of Investment in Automated Dispensing Drug System in Jordanian Hospital Pharmacies

OBJECTIVES: Automated Drug Dispensing System (ADDS) is an emerging technology positively impacts drug dispensing efficiency and improves patient safety by minimizing medication errors. ADDS implementation has an initial substantial cost that must be balanced against its profitability. The aim is to assess the profitability of investment in ADDS in Jordanian hospital pharmacies.

METHODS: The analysis includes the investment cost and cost-savings of preventing severe dispensing errors in outpatient hospital settings over 5 years. We calculated the net present value (NPV) and internal return rate (IRR) of cash flows. The cost of investment included only the cost of machine purchase (estimated 700,000 JOD), other costs such as the costs of repairs, system upgrading, and technical training were assumed to be 100% insured by supplier over 5 years. The cost-savings were evaluated from the prevention of hospital admissions due to severe medication errors.

The annual average number of prescriptions/outpatient pharmacies (257,142), annual manual dispensing error rate (16%), annual percentage of dispensing errors causing severe harm (1.1%), mean length of hospital stay due to avoidable severe medication errors (5 days) and the hospitalization cost per inpatient day (138.31 JOD) were taken from a Jordanian public health center and published studies. Severity of harm was assessed using the Harm Associated with Medication Errors Classification (HAMEC) tool.

We assumed that the investment return rate will be the interest rate (5%) as reported by the Central Bank of Jordan in June 2024.

RESULTS: NPV for ADDS investment is positive (+654,981.7 JOD) with IRR value of (28%) in 5 years. We found that the payback will begin after 3 years of ADDS implementation with an estimated IRR of 11%.

CONCLUSIONS: ADDS systems are worthwhile investments and primarily improve the quality and safety of the medication process. Our findings may contribute to faster adoption of these technologies by Jordanian hospitals.