ABSTRACT
Approximately 35.0% of annual hospitals budget is spent
on buying materials and supplies, including medicines. We can bring about substantial improvement in the hospital inventory and expenditures by the inventory control techniques. Objective: To identify
the categories of drugs which need stringent management control. Material and
Method: The ABC and VED analysis of the medical store of a Neuropsychiatry hospital
at Delhi, India was conducted for the year 2008-2009 to identify the categories
of items needing stringent management control. Results: The total number of the
drugs at the medical store was 145 drugs. The total annual drug expenditure (ADE)
on these drug items was Rs. 19219594.79. ABC analysis revealed 3.45%, 6.9% and 89.65%
items as A, B and C category items, respectively, accounting for 70.5%, 19.68% and
9.83% of ADE of the medical store. VED analysis
showed 32.41%, 61.38% and 6.2% items as V, E, and D category items, respectively,
accounting for 70.9%, 28.72% and 0.38% of ADE
of the medical store. On ABC-VED matrix analysis, 33.8%, 60% and 6.2% items
were found to be category I, II and III items,
respectively, accounting for 92.33%, 7.29% and 0.38% of ADE of the medical
store. Conclusion: It is suggested by the study that the management of Category I drugs should
be done by the top management resulting in stringent control on the annual expenses. The Category II should be managed
by the middle management level and Category III
at lower managerial level.