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Hospital budget cuts can result in changes.(Report)

Drug Formulary Review

| July 01, 2009 | COPYRIGHT 2009 A Thomson Healthcare Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Hospital budget cuts can result in changes

IT efficiencies can help

Not every hospital pharmacy has experienced budget cuts this year, but with the prolonged economic downturn this is a possibility for everyone.

The pharmacy at Oregon Health & Sciences University Hospital and Clinics in Portland, OR, took a 3.5-4% across-the-board budget cut -- all in labor costs, says Gae M. Ryan, PharmD, director of pharmacy services.

"The reason OHSU needed to lay off staff is because the hospital and clinics are part of a larger campus, and its educational mission partly relies heavily on investment income," Ryan says. "And as you might expect, that didn't do too well this year."

So last fall there was an immediate deficit, and the hospital system's budgetary pressures also emerged, Ryan adds.

"Volume is down everywhere, and there are so many things impacting people's reactions to things now," she says.

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