Cost saving and cost avoidance from the pharmacy automation system

Abstract

The aims of this study were to assess effectiveness of the pharmacy automation system in term of cost saving and cost avoidance, medication filling errors reduction and to suggest a model of cost calculation. Data was collected retrospectively at the inpatient pharmacy department, the Bumrungrad International Hospital during 6 months separated period (July-December 2007, July-December 2008). Cost avoidance concerned costs of medication filling errors and other related costs, while cost saving referred to costs of dispensing labor, new staff training costs, and inventory costs. In an overall, the results revealed that the new pharmacy system with an automated drug filling was be able to reduce around 70% of medication filling errors. Under traditional dispensing system, the medication error and related costs was 4,940 baht, whereas the new system lost 4,053 baht during the 6-month study periods. Cost of claims and compensation could not include in this calculation because of unable to clarify of exact causes and details of such events. Thus, the automated system could avoid 1,687 baht of medications cost and drugs filling cost during the study. At the same time, the new automated system was able to save dispensing labor cost around 303,996 baht training cost saved 176,000 baht and inventory cost saved up to 1,049,308 baht. So, total cost saving was 1,529,304 baht. In the consideration of cost calculation model, it was concerned that all possible related costs directed to the implementation of the new robot in which; cost avoidance counted from medication filling errors cost (calculated depending on levels of severity) and cost of compensation resulting from dispensing deviations; cost saving could be computed from cost from dispensing labor, training costs, and inventory costs.