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Managing high value medicines

Published
Topics: ProcurementTrusts

Medicines can be seen as a liability or an asset. High value medicines should have regular stock checks to ensure stock holding is accurate.

This article forms part of a series
  1. Managing medicines inventory
    1. Understanding principles of medicines inventory management
    2. Completing regular and annual stock checks
    3. Reconciling stock in automated storage systems
    4. Monitoring slow moving stock and rarely used medicines
    5. Managing high value medicines
    6. Managing stock of critical medicines
    7. Managing high frequency order lines
    8. Managing expired stock and decommissioned products

Using our advice

Refer to the first article in this series, Managing medicines inventory (SPS page), if you have not done so already.

The actions discussed are viewed as best practice, but none are mandated by SPS regional pharmacy procurement leads.

High value medicines

Medicines inventory is often perceived in industry as a liability. Some medicines that hospitals are required to hold are of high value, particularly branded medicines, and specialist medicines such as those used in oncology, each has a defined expiry date. 

High value medicines are commonly commissioned by NHS England and require patient level billing data to be submitted for financial recovery. On the other hand, some finance departments may see the stock in real terms as an asset. Reducing stock holding has an impact on Trust assets therefore it is essential to speak with your chief pharmacist or designated responsible person when making any significant changes to stock holding. 

There is a financial risk of holding stock that may not be used within its expiry date.   

Typically, oral solid dose medicines will have long shelf lives, spanning a couple of years. Injectable medicines generally have shorter shelf lives, unlicensed specials and compounded medicines may have very short expiry dates. 

High value medicines within all locations in the department should have regular stock checks to ensure stock holding is accurate, and all medicines can be financially accounted for. 

Pharmacy systems can support the reporting of inventory for stock checking by value and location to support this process.

RxInfo’s, Exend has a function to identify the highest value medicines.