Hospital Pharmacy

(Purchasing, distribution and

control of hospital medicines,
medical and surgical supplies)

Lecture # 1
By
Imran Ahsan
 Learning objectives
At the end, the students will be able to:
• Explain the procurement procedure of
hospital supplies
• Describe the roles of pharmacist and
purchasing agent in drug procurement
 Introduction
• Necessary to maintain adequate stocks of
drugs and allied items at reasonable cost
• Purchase
• Inventory
• Control
 Procurement procedure
• Purchasing Department and pharmacist
• Selection of items
• Purchasing authority
• Records
• Receiving drugs
• Drug storage and inventory control
 Types of purchasing
• Centralized purchasing
• Departmental purchasing(decentralized)
Pharmacy
Bio-Medical
Laboratory
Radiology
Lenin- etc.
 Role of purchase department in
drug procurement
• Issues purchase orders
• Maintains records
• Follow ups on delayed orders
• Initiates bidding procedure
• Obtains quotations
 Methods of Purchasing
• Direct purchase from manufacturer
• Direct purchase from wholesaler
• By bid from either manufacturer or
authorized distributor
• By purchase from a local retail pharmacy
• By contract purchase arrangement with
manufacturer
• By contract purchase through a hospital
purchase bureau or corporation
 Further duties of a pharmacist/
Purchase Department
• Maintain list of drug manufacturers,
wholesalers and their local representatives
• Prepare detailed specifications for drugs,
chemicals and biologicals
• Prepare Request for Purchase Forms
• Prepare Receiving Memo
• Prepare Return Goods Memo
 Thanks
any questions???

• Reference
Hospital Pharmacy, W E Hassan, Pg.193-
212, 5th edition, 1986, Lea & Febiger
 Hospital Pharmacy
(Purchasing, distribution and
control of hospital medicines,
medical and surgical supplies)

Lecture # 2-3
By
Imran Ahsan
 Learning objectives
At the end, the students will be able to:
• Explain the purchasing procedure of
hospital supplies
• Know about control on purchases
• Learn about various types of discounts on
hospital supplies while purchasing
 Purchasing procedure
• Plan
Pharmacy Department & Purchase
• Purchase request form and approval
or Demand or indent
• Purchase order
Upon receiving request from Pharmacy or other
department or on the basis of reorder quantity level
 Cont.
• Good receiving note
Inspection committee or audit committee
• Purchase record
• Out of stock form
 Control on Purchases
• By inventory controlling
• Previous Data
• Predictions
 Records
• Purchase and inventory records
• Controlled substance inventory and
dispensing record
• Records of medication orders and there
processing
 Tolls of inventory management
• ABC concept
• Money limitation on purchase order
• Inventory turnover based order
• Economic order quantity
 Tolls of inventory management
• ABC concept
Simple toll
Few items accounts for major part
Drugs are classified , highest-medium and
low-value items
A and B constitute major portion of
inventory by value (about 90% or more)
 Cont.
• Money limitation on purchase order
Administration exercise
Multiple short orders
Long run more costly
 Cont.
• Inventory turnover based
Modern and reliable
Cost of goods sold during fiscal period by
average of opening and closing inventories
Low turnover indicates ,
Duplication of stock
large purchases of slow moving items
Dead inventory
 Cont.
High turnover inventory ,
low volume purchases
discount on bulk purchases i-e large
volume
purchases
6-8 times a year consider satisfactory
Institutes with limited budget may wish to
increase there turnover rate
 Cont.
• Economic order quantity
Decision of inventory volume based on
the cost keeping
The EOQ factor decide ascertaining cost
ordering and inventory carrying cost
 EOQ cont.
• Thing that considered in ordering cost
All man power cost in purchasing
Labor cost in supporting area
Cost applicable to payment of invoices
Cost of stationary
Freight and telephonic cost
 EOQ cont.
• To determine inventory carrying charges
Space charge for storage area
Labor cost for storage operation
Cost of supplies for storage operation
Taxes
Deterioration
Pilferage
 EOQ cont.
• Computation of inventory turn over by
EOQ

√ 2 x 12 x cost of ordering
/ unit cost x inventory carrying
 Reorder quantity level
• Components of reorder point system
Safety stock

Order point

Order quantity
 Reordering level

• RO = AU/13 x AVLT + SF

RO, reordering level

AU , average usage rate of a product/
month
AVLT , average vendor lead time
SF , safety factor
 Cont.
• In application of the above formula ,necessary
points must be considered
Unanticipated increase in consumption
Shelf live of item involve
Unusual delay
Periodically recheck RO level for change
in usage rate
 Discounts
• Volume contract
Offered by majority of Pharmaceutical companies
Institute approximates its annual consumption and signed
agreement with company
Price usually less than trade price
Price protected from an increase
 Cont.
• Bonus deals
Offered by companies
Time to time on particular product
e.g. One free on purchase of a dozen
 Learning objectives
At the end, the students will be able to:
• Discuss about the storage of hospital
supplies
• Know about the control of inventory
 Storage
• Central storage vs. pharmacy storage

• Store room arrangement

• Shelf stripping and floor marking

• Marking of merchandise
 Control of inventory
• Record of dated pharmaceuticals
• Taking of a physical inventory
Planning , stock review , stock adjustment
• Perpetual inventory
Pegboard method
Through software
 Materials management
• Movement of material from point of origin
to point of use
Control of drugs and related items from
its procurement , storage , use ,inventory
control and disposition.
Inventory forecast , availability of products
right inventory investment
 Thanks
any questions???

• Reference
Hospital Pharmacy, W E Hassan, Pg.193-
212, 5th edition, 1986, Lea & Febiger