Pharmacoeconomics and the formulary decision-making process.

What is pharmacoeconomics and why is there growing interest in this concept by those who work in or serve the medical community? This article provides a brief explanation of this concept and its importance from an institutional perspective. Additionally, the tasks typically associated with the position of a pharmacoeconomist in the hospital setting are defined. Also described are the types of cost analyses that can be used, the relationship between pharmaceutical care and pharmacoeconomics, and finally, two examples of how pharmacoeconomic principles are actually being used in the formulary decision-making process at a major tertiary care center--The Cleveland Clinic Foundation.