Analyzing of drug expenditure helps in cost control, identifying spending patterns, and making informed decisions about inventory management.
1. ABC Analysis
Concept:
Categorizes inventory based on importance.
A Items: 20% of items accounting for 80% of expenditure.
B Items: 30% of items accounting for 15% of expenditure.
C Items: 50% of items accounting for 5% of expenditure.
Application:
Focus on A Items: Tight control and accurate records.
Simplify Management of C Items: Less rigorous controls.
2. VEN Analysis
Categories:
Vital (V): Essential for life-saving; no substitutes.
Essential (E): Important for health; alternatives may exist.
Non-essential (N): Limited therapeutic value or duplicates.
Usage:
Prioritize V and E Items: Ensure constant availability.
Review N Items: Assess the necessity of stocking them.
3. FSN Analysis
Classification:
Fast-moving (F): High turnover items.
Slow-moving (S): Moderate turnover.
Non-moving (N): Items with little or no movement.
Management Strategy:
F Items: Regular monitoring and reordering.
N Items: Evaluate for potential discontinuation.
4. HML Analysis of Drug Expenditure
Grouping:
High cost (H): Expensive items requiring tight control.
Medium-cost (M): Moderately priced items.
Low-cost (L): Inexpensive items.
Control Measures:
H Items: Detailed oversight and approval for purchase.
L Items: Simplified procurement processes.
5. SDE Analysis
Categories:
Scarce (S): Difficult to procure.
Difficult (D): Limited suppliers or longer lead times.
Easy (E): Readily available.
Procurement Planning:
S and D Items: Advance ordering and maintaining higher safety stock.
E Items: Just-in-time ordering.