Charging for hospital pharmaceutical services: computerized system using a markup and a dose fee.

The methods used to determine pharmacy charges for a pricing program in a 940-bed hospital using a computerized on-line pharmacy pricing and inventory control system are described. The program requires input of only four pieces of information: (1) patient number; (2) drug identification number; (3) dose factor; and (4) total number of doses dispensed. In the pricing formula, the charge to the patient is calculated by adding the product of the total cost of medication and the markup factor to the product of the dose fee and the total number of doses received. Advantages of the system are: (1) the patient or third-party payer can be given an itemized bill for all pharmaceutical charges; (2) the system accounts for all medication costs, whether they are charged to the patient or not; (3) the revenue for the department can be projected and adjusted accurately; (4) the charges are fair and equitable; (5) the patient is charged for medication administered only; and (6) the system produces accurate statistical reports for both the pharmacy and the financial services department. The disadvantages is the number of man-hours needed for the pricing function.