Understanding Strategies That Determine the Formulary Development and Inventory Management in Indian Healthcare Settings While Exploring Public Opinions on the Affordability of Medicines
Author(s)
Bhimireddy Sahithi, Bachelors of Pharmacy, Shivangi Bansal, Bachelors of Pharmacy, Vishruti Mehra, Bachelors of Pharmacy, Avisha Jain, Bachelors of Pharmacy, Abhijeet Joshi, PhD.
Birla Institute of Technology and Science, Pilani, Hyderabad Campus, Hyderabad, India.
Birla Institute of Technology and Science, Pilani, Hyderabad Campus, Hyderabad, India.
OBJECTIVES: Providing the best therapeutic care has always remained the primary goal in a healthcare setting but with the costs steadily rising, ensuring both clinical value and economic efficiency is necessary. Pharmacoeconomics is a vital health domain that proposes various strategies for the assessment of cost, affordability and informed decision making.
METHODS: A questionnaire-based survey was conducted with 8 community pharmacies and 13 private hospitals in India to study and analyze the decision making involved in formulary development and inventory management. Additionally, based on income variability and age a survey was conducted to study people’s perspectives on the affordability of prescription drugs and medication adherence.
RESULTS: Our analysis showed that private hospitals lack a standard system as the formulary decisions are made by a Pharmacy and Therapeutics (PTC), consisting of experts from various disciplines. Tools like Scoring Analytical Tool (SAT) and GRADE were used variably to select the drugs. Drug inclusion was dependent on availability of vendors, cost and alignment with the WHO model list of medicines. Hospitals are fostering academic collaborations to broaden the scope of this niche domain. Most of the pharmacies followed similar strategies in terms of formulary development as well as cost management, like working according to the demand, using cost-minimization and cost-effectiveness methodologies, following first-expiry-first-out (FEFO) system to prevent stockouts. However, the usage of inventory management software is minimal. About 20% of the surveyed public in India reported financial constraints that affect the medication adherence due to high costs, indicating the need for more patient centered and practical strategies that emphasize affordability.
CONCLUSIONS: The study demonstrates a demand driven approach when the budget is limited. This helps in a comprehensive evaluation of understanding both the healthcare facilities and the applicable pharmacoeconomic principles.
METHODS: A questionnaire-based survey was conducted with 8 community pharmacies and 13 private hospitals in India to study and analyze the decision making involved in formulary development and inventory management. Additionally, based on income variability and age a survey was conducted to study people’s perspectives on the affordability of prescription drugs and medication adherence.
RESULTS: Our analysis showed that private hospitals lack a standard system as the formulary decisions are made by a Pharmacy and Therapeutics (PTC), consisting of experts from various disciplines. Tools like Scoring Analytical Tool (SAT) and GRADE were used variably to select the drugs. Drug inclusion was dependent on availability of vendors, cost and alignment with the WHO model list of medicines. Hospitals are fostering academic collaborations to broaden the scope of this niche domain. Most of the pharmacies followed similar strategies in terms of formulary development as well as cost management, like working according to the demand, using cost-minimization and cost-effectiveness methodologies, following first-expiry-first-out (FEFO) system to prevent stockouts. However, the usage of inventory management software is minimal. About 20% of the surveyed public in India reported financial constraints that affect the medication adherence due to high costs, indicating the need for more patient centered and practical strategies that emphasize affordability.
CONCLUSIONS: The study demonstrates a demand driven approach when the budget is limited. This helps in a comprehensive evaluation of understanding both the healthcare facilities and the applicable pharmacoeconomic principles.
Conference/Value in Health Info
2025-11, ISPOR Europe 2025, Glasgow, Scotland
Value in Health, Volume 28, Issue S2
Code
PCR254
Topic
Economic Evaluation, Patient-Centered Research, Study Approaches
Topic Subcategory
Adherence, Persistence, & Compliance
Disease
No Additional Disease & Conditions/Specialized Treatment Areas