ORGANIZATION: Indian Institute of Health Management Research (IIHMR), Jaipur, India & Delhi Society for Promotion of Rational Use of Drugs (DSPRUD), Delhi PROBLEM OR ISSUE ADDRESSED: In 1994, when efforts for developing a drug policy were made, the availability and use of medicines in Delhi government hospitals was poor. Most of the prescribed drugs expected to be given free of cost to patients were not available at the hospital pharmacy.  Unneeded medicines such as drug combinations, herbal medicines, and tonics were stocked in the stores. At this time the Delhi Society for Promotion of Rational Use of Drugs (DSPRUD), a Non-Governmental Organization (NGO) consisting of government and non-government members, was formed to improve the situation. This group assisted the government in framing the drug policy and its implementation through support from WHO. GOALS: To assess the impact of the drug policy in Delhi in terms of availability of essential medicines, change in stockout days, and expenditure on essential and non essential drugs. OUTCOMES ITEMS USED IN THE DECISION: The quantity of drugs procured from the Essential Drugs List (EDL) and outside the EDL; money spent on these; changes in stockout days for the key drugs; and change in utilization patterns of health services by patients. IMPLEMENTATION STRATEGY: Implementation of elements of the drug policy such as selection of essential drugs and an improved procurement system for medicines. Design: Retrospective data were collected through record reviews. The data for two years before (1993-1994, 1994-1995) and two years after (2000-2001, 2001-2002) the drug policy were assessed. Setting and Population: Two public sector hospitals at Delhi that serve a large section of the population, one with 1350 beds (large) and the other with 550 beds (medium), were selected by the convenient purposive sampling method. RESULTS: After the implementation of the drug policy, the availability of drugs increased by 25% in the large and 98% in the medium hospital. The drugs procured from the EDL increased from 62% to 78% in the large and 74% to 87% in the medium hospital. Of the total expenditure, the money spent on essential drugs increased from 73% to 85% in the large and 87% to 93% in the medium hospital, whereas money spent on nonessential drugs decreased from 27% to 15% in the large and 13% to 7% in the medium hospital. The average number of stockout days for key dugs decreased from 33 to 16 days in the large and from 143 days to 33 days in the medium hospital. The utilization pattern of health services by patients increased by 8% in the large and by 35% in the medium hospital. LESSONS LEARNED: The implementation of the drug policy in the state of Delhi has led to increased availability of essential drugs. This type of intervention can serve as a model for improving access to medicines by implementing an effective drug policy through an NGO working with the government,and involving bureaucratic and political commitment.