Featured Research

from universities, journals, and other organizations

Drug costs projected to rise three to five percent in all settings in 2014

Date:
March 5, 2014
Source:
American Society of Health-System Pharmacists (ASHP)
Summary:
Costs for medications are expected to rise by 3 - 5% in all health care settings in 2014, according to a report. This annual projection of drug expenditures helps hospitals and health-systems plan drug budgets, which are a significant operating expense.

Bethesda, Md. -- Costs for medications are expected to rise by three to five percent in all health care settings in 2014, according to a report published online ahead of print, by the American Journal of Health-System Pharmacy(AJHP), the professional journal of the American Society of Health-System Pharmacists (ASHP). ASHP publishes this annual projection of drug expenditures to help hospitals and health-systems plan drug budgets, which are a significant operating expense.

Related Articles


The report, National Trends in Prescription Drug Expenditures and Projections for 2014, by Glen T. Schumock, Pharm.D., M.B.A, Ph.D., et al, will be published in the March 15, 2014, edition of AJHP and examines recent trends in drug expenditures, projects drug expenditures for 2014, and explores factors likely to influence drug expenditures.

Prescription drugs account for approximately 11 percent of overall U.S. health care expenditures. As with other health care expenditures, growth in prescription drug spending has lessened in recent years, with a 0.7 percent decrease in spending during the 12-month period ending September 30, 2013 compared with 2012. The authors expect a reversal of this trend in 2014, projecting a three to five percent increase in drug expenditures across all settings, a five to seven percent increase in expenditures for clinic-administered drugs, and a one to three percent increase in hospital drug expenditures.

"Our projections for 2014 indicate a clear reversal of the downward growth in prescription drug expenditures we have seen over the last several years," said Schumock. "Drug expenditure trends will remain dynamic, and so health systems will need to carefully monitor local drug use patterns."

These increases in expenditures are influenced by a variety of factors, according to the report, including new drug approvals and patent expirations. Using data provided by IMS Health, the authors report several trends in prescription drug spending, including:

- Clinics and nonfederal hospitals experienced increased drug spending (4.5 percent and 1.8 percent growth, respectively) in 2013 relative to 2012, while decreased expenditures were seen in federal facilities (-13.7 percent) and in long-term care (-4.2 percent), mail order (-1.9 percent) and retail pharmacy (-0.3 percent) sectors.

- Changes in expenditures for specific medications, drug classes, and therapeutic categories. These included:

o A significant decrease in expenditures across all settings for oxycodone.

o A significant increase in expenditures for influenza vaccines in the clinic setting, which may be due to new vaccine formulations and vaccination recommendations.

o A decrease in the expenditure growth rate for anti-cancer drugs (from 2012 to 2013), although anti-cancer drugs remain the top expenditure for hospitals and clinics.

o Changes in the availability of generic products, with fewer first-time generic drugs expected to reach the market in 2014.


Story Source:

The above story is based on materials provided by American Society of Health-System Pharmacists (ASHP). Note: Materials may be edited for content and length.


Journal Reference:

  1. G. T. Schumock, E. C. Li, K. J. Suda, L. M. Matusiak, R. J. Hunkler, L. C. Vermeulen, J. M. Hoffman. National trends in prescription drug expenditures and projections for 2014. American Journal of Health-System Pharmacy, 2014; 71 (6): 482 DOI: 10.2146/ajhp130767

Cite This Page:

American Society of Health-System Pharmacists (ASHP). "Drug costs projected to rise three to five percent in all settings in 2014." ScienceDaily. ScienceDaily, 5 March 2014. <www.sciencedaily.com/releases/2014/03/140305144716.htm>.
American Society of Health-System Pharmacists (ASHP). (2014, March 5). Drug costs projected to rise three to five percent in all settings in 2014. ScienceDaily. Retrieved November 23, 2014 from www.sciencedaily.com/releases/2014/03/140305144716.htm
American Society of Health-System Pharmacists (ASHP). "Drug costs projected to rise three to five percent in all settings in 2014." ScienceDaily. www.sciencedaily.com/releases/2014/03/140305144716.htm (accessed November 23, 2014).

Share This


More From ScienceDaily



More Health & Medicine News

Sunday, November 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Ebola-Hit Sierra Leone's Late Cocoa Leaves Bitter Taste

Ebola-Hit Sierra Leone's Late Cocoa Leaves Bitter Taste

AFP (Nov. 23, 2014) The arable district of Kenema in Sierra Leone -- at the centre of the Ebola outbreak in May -- has been under quarantine for three months as the cocoa harvest comes in. Duration: 01:32 Video provided by AFP
Powered by NewsLook.com
Don't Fall For Flu Shot Myths

Don't Fall For Flu Shot Myths

Newsy (Nov. 23, 2014) Misconceptions abound when it comes to your annual flu shot. Medical experts say most people older than 6 months should get the shot. Video provided by Newsy
Powered by NewsLook.com
WFP: Ebola Risks Heightened Among Women Throughout Africa

WFP: Ebola Risks Heightened Among Women Throughout Africa

AFP (Nov. 21, 2014) Having children has always been a frightening prospect in Sierra Leone, the world's most dangerous place to give birth, but Ebola has presented an alarming new threat for expectant mothers. Duration: 00:37 Video provided by AFP
Powered by NewsLook.com
Could Your Genes Be The Reason You're Single?

Could Your Genes Be The Reason You're Single?

Newsy (Nov. 21, 2014) Researchers in Beijing discovered a gene called 5-HTA1, and carriers are reportedly 20 percent more likely to be single. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins