Therapeutic equivalence program: continued economic benefits in the context of rising costs and increased demand

Abstract

Objective The aim of this study was to describe the effect of a therapeutic equivalence program (TEP) in achieving financial sustainability from 2010–11 to 2014–15.

Methods A TEP was introduced at Monash Health in 2006–07. Therapeutic medicine classes for inclusion were selected by stakeholder consensus and a preferred medicine for each class was chosen based upon therapeutic equivalence and cost considerations. New patients were commenced on a preferred medicine, but patients already prescribed another medicine from the same therapeutic class were not automatically switched to the preferred medicine. Data was obtained retrospectively from the pharmacy dispensing system, including the purchasing and issuing of all medicines from the preferred medicine classes. The prescribing patterns for preferred and comparator medicines were used as a measure of acceptance of the TEP, along with the savings produced by the program.

Results Over the 5-year evaluation period, 18 therapeutic classes were targeted, including seven new classes. Six therapeutic classes from the 11 included in the TEP before 2010–11 were removed throughout the evaluation period when the comparative economic benefits were no longer present. The use of all preferred medicines increased following implementation and a total of AU$7.38 million was saved from 2010–11 to 2014–15 and AU$10.54 million across 2006–07 to 2014–15.

Conclusions This paper provides an update on the progress of the TEP at Monash Health and outlines additional learnings gained. The market dynamics for pharmaceuticals means ongoing maintenance and review of the therapeutic medicine classes targeted is important to enable continued economic benefits.

What is known about the topic? There is continued and increasing focus on efficient, cost-effective and financially sustainable medication management. There is limited information available on strategies that can be implemented at a health service level.

What does this paper add? The TEP has resulted in sustained savings. The market dynamics for pharmaceuticals means ongoing maintenance and review of the therapeutic classes targeted is important to enable continued economic benefits.

What are the implications for practitioners? TEP is a process of genuine disinvestment. Identification and resolution of critical factors in the success of the program may assist implementation at other health services.