LEBEN COLLEGE OF
HEALTH SCIENCE AND
TECHNOLOGY
Department of
Nursing
Pharmacology 1: 109
LECTURER: MR
MWALA
TASK 1 :WRITE NOTES ON DRUG
PROCUREMENT AND SUPPLY
PHARMACO-ECONOMICS
TASK 2: WRITE NOTES ON
CLASSIFICATION OF DRUGS
LBN/KRCHN/SEP24/193
DATE OF SUBMISSION: /12/2024
Pharmaco-economic
Pharmaco-economics is a field of pharmacology that analyses the cost and
benefits of pharmaceutical products and other health interventions.
Key components of Pharmaco-economics include
1. Cost-effectiveness analysis (CEA)
Compares the cost of different interventions to there
outcomes
Helps determine the most effective treatment option
2. Cost benefit analysis (CBA)
Assigns monetary values to both costs and benefits
of an intervention.
Allows for comparison of interventions with different
outcomes.
3. Cost-Minimization Analysis (CMA):
Identifies the least costly option among interventions
with equivalent clinical outcomes.
4. Cost-Utility Analysis (CUA):
Similar to CEA, but measures outcomes in terms of
quality-adjusted life years (QALYs).
Considers both the quantity and quality of life gained
from an intervention.
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Principles of
Pharmaco-economics
Economic Evaluation: This involves comparing the
costs and consequences of different interventions. It
helps determine the most cost-effective option.
Perspective: The perspective from which the
analysis is conducted can influence the results.
Common perspectives include:
Societal Perspective: Considers all costs and
benefits to society, including healthcare costs,
productivity losses, and quality of life.
Healthcare Payer Perspective: Focuses on the
costs incurred by healthcare payers, such as
insurance companies or government programs.
Patient Perspective: Considers the costs and
benefits experienced by individual patients.
Cost Measurement: Accurately measuring costs is
essential. This includes direct costs (e.g., drug costs,
medical procedures), indirect costs (e.g., lost
productivity), and intangible costs (e.g., pain and
suffering).
Outcome Measurement: Measuring the health
outcomes of interventions is crucial. This can involve
clinical outcomes (e.g., mortality, morbidity), quality-
of-life measures, and productivity gains.
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Discounting: Future costs and benefits are often
discounted to account for the time value of money.
This is necessary to compare costs and benefits that
occur at different points in time.
Healthcare Decision Making: Assists policymakers,
healthcare providers, and insurers in making
informed choices about drug inclusion in formularies
and coverage.
Resource Allocation: Helps optimize the allocation of
healthcare resources to maximize health benefits.
Pricing and Reimbursement: Supports evidence-
based pricing and reimbursement decisions by
demonstrating the value of drugs.
Clinical Guidelines: Informs the development of cost-
effective clinical guidelines and treatment protocols.
Patient Access: Improves patient access to effective
medications by promoting the use of cost-effective
therapies.
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Drug Procurement and supply
Drug procurement and supply is an important part of Healthcare. It
ensures that essential medications are available when they are
needed.
It includes the following:
Need assessment
Identify the specific drugs required based on patient needs, disease prevalence,
and treatment guidelines.
- Consider factors like drug utilization patterns, expiry dates, and storage
requirements.
Selection of Suppliers:
- Evaluate potential suppliers based on factors such as:
- Quality assurance systems
- Reliability of supply
- Competitive pricing
- Compliance with regulatory standards
Procurement Methods:
- Open Tendering: Inviting bids from multiple suppliers, ensuring transparency
and competition.
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- Direct Purchase: Procuring directly from a single supplier, often used for urgent
needs or specialized products.
- Framework Agreements: Establishing long-term contracts with suppliers,
providing stability and potential cost savings.
Negotiation and Contract Management:
- Negotiate favourable terms with suppliers, including pricing, delivery timelines,
and quality standards.
Ensure compliance with contract terms and address any
issues.
Supply
Storage and Distribution:
Maintain appropriate storage conditions for drugs, including
temperature and humidity control.
Implement robust inventory management systems to track
stock levels and prevent shortages or overstocking.
Ensure timely and efficient distribution of drugs to
healthcare facilities.
Quality Assurance:
Establish quality assurance procedures to verify the
authenticity, quality, and efficacy of procured drugs.
Implement regular inspections and testing to identify and
mitigate potential quality issues.
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Waste Management:
Develop policies and procedures for the safe disposal of
expired or unused medications.
Minimize drug waste through proper inventory
management and rational prescribing practices.
Classification of Drugs
Drug Classification is the systematic categories . This
classification helps healthcare professionals understand the
properties, indications, and potential side effects of drugs.
Classification by Function
- Analgesics: Relieve pain
- Anesthetics: Induce loss of sensation
- Antibiotics: Combat bacterial infections
- Antihypertensives: Lower blood pressure
- Antipsychotics: Treat mental disorders
- Cardiovascular Drugs: Affect the heart and blood vessels
- Respiratory Drugs: Treat respiratory conditions
- Gastrointestinal Drugs: Affect the digestive system
Classification by Chemical Structure
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- Organic Compounds: Carbon-based compounds
- Inorganic Compounds: Non-carbon-based compounds
Classification by Therapeutic Use
- Anti-infective Agents: Treat infections
- Cardiovascular Agents: Treat heart and blood vessel
conditions
- Central Nervous System Agents: Affect the brain and spinal
cord
- Respiratory Agents: Treat respiratory conditions
- Gastrointestinal Agents: Treat digestive disorders
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