They service patients through health maintenance organizations, pharmacy benefit management companies, and integrated health care delivery systems. The Academy is fortunate to be regarded by policy makers both at the national and state levels as the source for sound, responsible information about managed care pharmacy. With the time I have with you today, I would like to review some basic definitions, look at the coalition-developed Principles of a Sound Drug Formulary System, and touch upon the characteristics of formulary development and implementation that make it distinct from other areas of pharmacy practice. Definitions First of all, let me describe formularies. A formulary is a continually updated list of medications and related information, representing the clinical judgment of physicians, pharmacists, and other experts in the diagnosis and treatment of disease and promotion of health.
Formularies are a key component of sound drug formulary systems.
Oftentimes when people use the term formulary , they are really referring to the entire drug formulary system that is the cornerstone of prudent medication therapy for patients. A drug formulary system is an ongoing process whereby a health care organization , through its physicians, pharmacists, and other health care professionals, establishes policies on the use of drug products and therapies, and identifies drug products and therapies that are the most medically appropriate and cost-effective to best serve the health interests of a given patient population. In the fall of 1999, a coalition of national organizations representing health care professionals, government, and business leaders formed a working group to develop a set of principles specifying the essential components that contribute to a sound drug formulary system. The group undertook its task because of two factors. First, the increasing emphasis placed by public policy makers on the use of formulary management systems as a method to provide necessary access to pharmaceuticals in a cost-effective manner.