ABC-VEN Analysis of Medicine Expenditure at Mwananyamala Regional Hospital in Tanzania

Mori, Amani Thomas; Mnandi, Penina Erick; Kagashe, Godeliver A.B.; Håvard, Røkke; Haavik, Svein

doi:10.4236/me.2021.1210074

Cited by 6 publications

(6 citation statements)

References 29 publications

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“…Omeprazole was ranked among the top medicines with high expenditure, possibly resulting in prescription habits. A study conducted in Tanzania at Mwananyamala regional hospital found the same results while investigating whether proton pump inhibitors, including omeprazole, are among products with high expenditure [ 10 ].…”

Section: Discussionmentioning

confidence: 84%

“…However, with a frequent shortage of medicines, it would not be easy to ensure the best healthcare service delivery [ 5 – 8 ]. Thus, effective inventory management is needed to match the cost of stocks with the demand for medicines [ 3 , 9 , 10 ]. Optimal medicines management helps ensure that essential drugs are available at affordable prices [ 1 ].…”

Section: Introductionmentioning

confidence: 99%

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Analysis of pharmaceutical inventory management based on ABC-VEN analysis in Rwanda: a case study of Nyamagabe district

Mfizi

Niragire

Bizimana

et al. 2023

J of Pharm Policy and Pract

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Background Pharmaceuticals account for a large portion of healthcare spending in healthcare organizations. Their effective inventory management is required to match the cost of stocks with the customer demand and avoid shortage of supplies at any health facility level. This study aimed to analyze pharmaceuticals' inventory management using ABC-VEN analysis. Methods The study was conducted at Rwanda Medical Supply (RMS) Ltd, Nyamagabe Branch for products distributed to health facilities in Nyamagabe District catchment area from the financial years 2017–2018 to 2019–2020. It consisted of a descriptive retrospective study of 457 items. The latter are generic essential medicines distributed to public health facilities during the study period. Products were arranged according to a descending order of importance, and we performed a breakdown of products according to the Pareto Principle. Following an ABC analysis of distribution data for such drugs billed to healthcare facilities, a VEN analysis was performed to identify high-value vital products that require more attention. Results During the ABC analysis, 76 products were classified in group A. These accounted for 19.84% and had a value of 74.91% of the total cost of all products. Group B included 116 products, representing 30.29% with a value of 20% of the total cost, while Group C had 191 products, representing 49.87% with a value of only 5.09% of the total cost. During the VEN analysis, 202 products (44.20%) were classified as vital, 231 (50.54%) as essential, and 24 products (75.26%) as non-vital. The analysis with ABC-VEN resulted in Class I representing 55.80% of all medicines that cost 87.88% of all total cost, Class II representing 40.70% with a total cost of 11.82%, and Class III representing 3.50% with a cost of 0.3%. Conclusions This study results show that inventory management of vital and expensive products, such as antibiotics, antihypertensive pharmaceuticals, consumables, and massive solutions would be carefully monitored to prevent a shortage of such products at health facility levels. The ABC-VEN analysis is one of the practical and affordable method to achieve their optimized supply chain.

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Section: Discussionmentioning

confidence: 84%

Section: Introductionmentioning

confidence: 99%

Analysis of pharmaceutical inventory management based on ABC-VEN analysis in Rwanda: a case study of Nyamagabe district

Mfizi

Niragire

Bizimana

et al. 2023

J of Pharm Policy and Pract

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“…A single AN item (Valganciclovir HCL 450 mg tablet) in the present study consumed 9.4% of the annual expenditure in 2014/15. In a similar study conducted at Mwananyamala hospital in Tanzania, four of 233 medicines, which accounts for 7% of the total medicine expenditures, were expensive and nonessential ( Mori et al, 2021 ). This subgroup (expensive and nonessential) needs removal from the list if possible or replacement with equivalent but less costly medicine; hence, it would bring cost savings without affecting patient care ( Kokonya, 2016 ).…”

Section: Discussionmentioning

confidence: 99%

Inventory Management of Health Commodities in a Tertiary Teaching Hospital in Ethiopia

2022

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Background: Analyzing purchased health commodities based on their budgetary consumption and importance is crucial for efficient utilization of a hospital’s budget. However, it is rarely seen when hospitals, mostly in developing countries, conduct such kinds of analyses and make an informed decision, including to utilize their limited budget efficiently. Therefore, the purpose of this study was to analyze a 3-year inventory of health commodities (medicines, medical supplies, and laboratory reagents and chemicals) in Saint Paul Hospital Millennium Medical College (SPHMMC).Methodology: The study was conducted in SPHMMC located in Addis Ababa, Ethiopia. It is one of the largest specialized public hospitals in the country. It is a huge teaching hospital in the country where a large amount of budget is utilized. Three years of data were collected and ABC, VEN, and ABC-VEN matrix techniques were applied for the analysis. The data collection period was from March to April 2017.Results: An average of 296 medicines, 194 laboratory commodities, and 105 medical supplies were purchased over 3 years. Class A medicines, which consume 80% of the total annual pharmaceutical expenditures (APE) account, are 17.8%–20% of the total medicines by quantity. Antibiotics (ceftriaxone 1 gm injection and metronidazole), IV fluids (sodium chloride 0.9% injection and dextrose 40% injection), and antidiabetic medication (insulin zin suspension and metformin) are among the top 10 medications by value that consume significant amounts of the budget of the hospital. On VEN analysis, an average of 24% of the items were vital, 67% were essential, and 4–8–8.9% were nonessential. Nonessential items consumed 0.49%, 9.9%, and 1.1% of Annual Expenditures (AEs) in 2013/14, 2014/15 and 2015/16, respectively. On ABC-VEN matrix analysis, a single expensive and nonessential medicine (valganciclovir HCL 450 mg tablet) consumed 9.4% of expenditure in 2014/15. Class A laboratory commodities, which consume 70%–80% of the total laboratory expenditures represented 8.5%–20% of the total laboratory commodities analyzed for the 3 years. From class A items, antimonoclonal antibodies in 2013/14, hemocue glucose 201 4 × 25 tests in 2014/15, and glucose tests in 2015/16 consumed the highest percentages: 9.2%, 8.2%, and 23.7% of the AEs, respectively. There were laboratory commodities procured out of the VEN list, and these accounted for 6.8%–31.2% of the total laboratory expenditures over the 3 years. Class A medical supplies, which consumed 80% of the total medical supply expenditures, represented only 8.2%–15.8% of the total items over the 3 years studied. Surgical gauze 90 cm × 100 m, surgical gloves sterile latex number 7.5, and examination gloves were the top three based on expenditures in all the studied years. In 2015/16, examination gloves alone consumed 71.9% of the total expenditure.Conclusion: SPHMMC manages large numbers of health commodities (more than 500 excluding program commodities) which necessitate efficient inventory management practice in place. However, the purchase of the commodities particularly those products used for laboratory diagnosis is not strictly based on the hospital’s VEN list, indicating the need for better communication of the laboratory unit with the Drug and Therapeutic Committee (DTC) of the hospital. The DTC of the hospital should update the VEN list of the health commodities and strictly enforce the hospital procurement to adhere to the agreed upon list of medicines. In addition, the hospital should prioritize and decide the quantity and frequency of ordering health commodities based on regular ABC-VEN results.

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“…71,943,426(Darmawan et al, 2021). Efficient investment in drug supply value can be realized through rational prescribing and replacement of high-cost and non-essential vital drugs with low-cost ones (Mori et al, 2021). Effective and efficient management of pharmacies requires efficient prioritization and proper decision-making in the purchase and distribution of drug items and close supervision of those classified as important categories (Fitriana et al, 2017).…”

Section: Cost Efficiency After Inventory Planning Using Abc-ven and E...mentioning

confidence: 99%

Drug Inventory Management Using ABC-VEN and EOQ Analysis for Improving Hospital Efficiency

Wang¹

2022

Jurnal Aisyah : Jurnal Ilmu Kesehatan

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Pharmaceutical Installation at Hospital is a service unit that has a very large influence on hospital services and income from hospitals because the source of income and expenses comes from pharmaceutical installation activities in procurement to distribution. This research is a study on inventory management for Pharmaceutical supplies at Santo Yusup Boro Kulon Progo Hospital, Yogyakarta, this study aims to find a suitable inventory management calculation method that can be applied in hospitals, researchers chose ABC-VEN analysis to be applied to hospital pharmacy supply planning, as well as calculating the optimum number of orders in pharmaceutical drug supply, using EOQ calculations (Economic Order Quantity), as well as calculating when the reorder time (ROP) for the type of supply in pharmacy. This research method is a type of analytical descriptive research, the subjects of this study are the head of the service, head of finance, Head of Pharmacy installation, Head of Pharmacy and Hospital Therapy Team, other TFT members, as well as secondary data in the form of pharmaceutical sales reports, pharmacy reports in the form of opnam stock reports, reports of expired drugs, etc., data processing based on analytical descriptive using Microsoft excel. Where the results of the study from the number of pharmaceutical supplies at Santo Yusup Boro Hospital were 465 Drug items after being classified based on ABC-VEN analysis, 18 drugs entered the AV group, 20 drugs in the BV group, and 57 drugs including the CV group, after grouping based on ABC-VEN analysis in calculating the Optimum value of ordering drugs respectively, drug items, after using calculations based on ABC-VEN and EOQ analysis there was the efficiency of Rp. 22,206,511.52 in one year or there was efficiency of 41.8%. The conclusion of this study shows that the ABC VEN and EOQ methods can increase efficiency in the supply of medicines in hospital pharmacy installations, so this method is suitable for application in hospitals to manage supplies in hospitals.

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ABC-VEN Analysis of Medicine Expenditure at Mwananyamala Regional Hospital in Tanzania

Cited by 6 publications

References 29 publications

Analysis of pharmaceutical inventory management based on ABC-VEN analysis in Rwanda: a case study of Nyamagabe district

Analysis of pharmaceutical inventory management based on ABC-VEN analysis in Rwanda: a case study of Nyamagabe district

Inventory Management of Health Commodities in a Tertiary Teaching Hospital in Ethiopia

Drug Inventory Management Using ABC-VEN and EOQ Analysis for Improving Hospital Efficiency

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