Inefficient prescribing costs billions of healthcare dollars

Reuters Health Information: Inefficient prescribing costs billions of healthcare dollars

Inefficient prescribing costs billions of healthcare dollars

Last Updated: 2016-05-09

By Andrew M. Seaman

(Reuters Health) - In the U.S. between 2010 and 2012, nearly $73 billion was spent on brand name medications instead of less expensive alternatives, according to a new study.

A large portion of that was spent by patients, the researchers found.

"Prescription drug prescribing during the time of this paper was not efficient and still isn't efficient," said lead author Dr. Michael Johansen, of Ohio State University in Columbus. "The number we're spending on prescription drugs is really large. At least from what this paper shows, patients are bearing a disproportionate amount of the inefficiencies in our prescribing."

One way to make prescribing more efficient is to order the generic form of the brand name drug. Another, less widely accepted approach is known as therapeutic substitution, in which the patient receives a drug in the same class, but not necessarily the same drug.

To see how much could possibly be saved with therapeutic substitution, Johansen and his co-author Dr. Caroline Richardson of the University of Michigan in Ann Arbor analyzed 2010-2012 data on 107,132 medication users.

As reported online May 9 in JAMA Internal Medicine, about 62% of participants were using prescription drugs, and about a third were using a medication that was eligible for therapeutic substitution.

Of the $760 billion spent on prescription drugs during the study period, about $73 billion may have been unnecessarily spent on brand name drugs, the researchers found.

Nearly $25 billion of the $175 billion that patients paid out-of-pocket for their drugs during that time might have been saved by therapeutic substitutions.

The key to moving toward therapeutic substitution is to coordinate with doctors, said Johansen, because in some cases a patient may need a specific generic drug for a specific reason.

His concerns are echoed in an editorial by Dr. Joseph Ross, JAMA Internal Medicine associate editor and associate professor at Yale University in New Haven, Connecticut.

"To achieve the benefits of within-class substitution, we need wider adoption of systematic protocols, aligned with physician judgment, as to when such substitutions are beneficial and when not," he wrote.

Johansen thinks it will take a lot of different interventions at different levels to overcome reluctance to implement therapeutic substitution, but policy efforts will probably be helpful.

"Essentially the feeling you get with this is very similar to how people felt when generics were coming out," he said. But, he pointed out, "The acceptance of generic drugs has improved."


JAMA Intern Med 2016.

© Copyright 2013-2019 GI Health Foundation. All rights reserved.
This site is maintained as an educational resource for US healthcare providers only. Use of this website is governed by the GIHF terms of use and privacy statement.