|| Checking for direct PDF access through Ovid
To describe pharmacoeconomics and its relationship to drug interventions.Pharmacoeconomics is the branch of economics which applies cost-minimization, cost-benefit, cost-effectiveness and cost-utility analyses to compare the economics of different pharmaceutical products or to compare drug therapy to other treatments. Among the four instruments, cost-utility analysis is the most sophisticated, relevant and clinically applicable as it measures the value conferred by drugs for the monies expended. Value-based medicine incorporates cost-utility principles but with strict standardization of all input and output parameters to allow the comparability of analyses, unlike the current situation in the healthcare literature.Pharmacoeconomics is assuming an increasingly important role with regard to whether drugs are listed on the drug formulary of a country or province. It has been estimated that the application of standardized, value-based medicine drug analyses can save over 35% from a public healthcare insurer drug formulary while maintaining or improving patient care.