Hospice Medication Cost Study

Abstract

Hospice organizations struggle to provide quality services within the parameters of decreasing per diem rates. So as to avoid a reduction in direct patient care, this organization chose to evaluate one of its highest indirect costs-medications. As a result of benchmarking on a national basis with other similar sized hospices, they identified that their prescription costs per patient per month were significantly higher. Using formulary information shared by other hospices and their benchmark vendor, this hospice was able to save money on prescription costs while continuing to provide the same amount of care and services without a detrimental effect on either the hospice or the patient.