Building a Cost-Effective Wound Care Formulary

Topic:  Building a cost-effective wound care formulary

Purpose:   Reduced reimbursement continues to force healthcare systems to produce or improve quality outcomes while finding ways to save money.

Objectives:   1) Identify the formularies used by other hospitals in the same purchasing group.  2) Obtain guidance from the purchasing group.  3) Create a chart of currently used products by category and manufacturer, color-coded to identify inpatient and outpatient.  Personnel in Supply Chain Services are experts in contracts, negotiations and usage numbers but not necessarily in clinical issues, i.e. why do you need all these dressings?  In addition, in some instances products that were being used in the outpatient clinics were different from those being used in the hospitals.  A chart clarifying all these issues created a common language and understanding between Nursing and Supply Chain Services.   4) Work with Supply Chain Services and the vendors to identify cost-savings available under the various purchasing agreements.  5) Submit proposed changes in the formulary to the Value Analysis Committee and Nursing’s Clinical Practice Council. 

Outcomes:  All 41 hospitals in our purchasing group were contacted by email.  Six hospitals responded, only two shared their formulary.  The purchasing group, in the end, could offer no guidance.  The products chart was created.  It proved to be helpful to Nursing and Purchasing in helping to identify areas where we might change and consolidate.  The chart directed us toward one vendor in particular.  More than $17,400/yr savings were identified if changes in three product categories were made without a significant change in practice.  The Value Analysis Committee pending approval by the Clinical Practice Council endorsed the changes.  The Clinical Practice Council pending the results of the pilot trials, which are currently ongoing, will approve the three changes to the formulary.