Background Pharmacy and Therapeutics Committees function at various levels to make formulary decisions Independent process resulting in variations in.

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Presentation transcript:

Hospital Formularies Decision-Making Process a CADTH Environmental Scan Kathleen Kulyk Liaison Officer – Saskatchewan on behalf of Sirjana Pant 2015 CADTH Symposium April 13, 2015

Background Pharmacy and Therapeutics Committees function at various levels to make formulary decisions Independent process resulting in variations in formularies More collaboration in recent years to enhance continuity of care, ensure equality of services, and improve the ability to align the hospital formulary with the publicly funded provincial outpatient drug program In Canada, hospital-based Pharmacy and Therapeutics Committees may function at an individual hospital level, district or regional health authority level, or provincial level as well as public drug plan level. These P&T committees make formulary decisions on the basis of empirical evidence; however, factors such as safety of similar available agents and cost factors may also significantly impact formulary decisions Traditionally, health authority or hospital P&T committees make formulary decisions for hospitals, independent of the public drug plans, resulting in variations in these formularies. As such, there may be more than one set of drug formularies guiding the treatment of a patient in a province or territory depending on where the patient is receiving care (i.e., hospital versus community setting). Variations in what is listed across formularies may hinder the continuity of care and potentially affect patients’ adherence to medications However, in recent years, some jurisdictions have seen a growing collaboration between the public drug plans and the hospitals and health authorities to ensure consistent drug coverage for patients. The overarching goals of these efforts were to enhance continuity of care, ensure equality of services, and improve the ability to align the hospital formulary with the publicly funded provincial outpatient drug program

Introduction Survey-based Environmental Scan Level of awareness and use of CADTH products and services at Canadian health authorities and hospitals. Identify potential opportunities for CADTH to support formulary review processes at Canadian health authorities and hospitals Explore the level of collaboration between these health authorities and hospitals and the public drug plans when formulary decisions are being made. Pant S, Sherwood V, and Chelak K. Hospital Formularies Decision-Making Process. Ottawa: Canadian Agency for Drugs and Technologies in Health; 2015. www.cadth.ca To understand the ongoing collaboration between hospitals, health authorities and public drug plan, CADTH conducted a survey based Environmental scan. The scan explored 3 areas - the level of awareness and use of CADTH products and services at Canadian health authorities and hospitals. - to identify potential opportunities for CADTH to support formulary review processes at Canadian health authorities and hospitals - Explores the level of collaboration between these health authorities and hospitals and the public drug plans when formulary decisions are being made, highlight some of the opportunities and challenges in fostering such collaboration. This presentation will focus on the findings in this area. The full report is available on the CADTH website

Method 23 surveyed, responses received from 20 (June - October , 2014) Currently involved in a health authority or hospital formulary decision- making process (except Quebec) – Total 19 respondents in findings Representation from each province and territory. Representation from both urban and rural settings in all the provinces (except Nova Scotia) All respondents from the territories represented institutions servicing remote locations. Two respondents were located in urban centres but provided support for remote locations (Nunavut and rural Ontario) via telepharmacy The findings in this Environmental Scan are based on responses to the CADTH Hospital Formulary Environmental Scan Survey, gathered as at October 22, 2014. Of the 23 stakeholders surveyed, responses were received from 20.   All respondents were currently involved in a health authority or hospital formulary decision-making process, except for the respondent from Quebec. The survey response from Quebec is therefore presented separately. This presentation will focus on the response from 19 respondents Responses were received from at least one stakeholder from each province and territory. Except for Nova Scotia, there was representation from both urban and rural settings in the provinces. All respondents from the territories represented institutions servicing remote locations. Two respondents were located in urban centres but provided support for remote locations (Nunavut and rural Ontario) via telepharmacy.

Survey Questions on Collaboration Describe any ongoing initiatives your institution may be initiating or exploring to better support your drug review process? How do provincial drug plan formulary decisions influence your drug formulary decisions? Are there any formal policies or informal processes in place and/or any initiatives underway to align with provincial drug plan recommendations?  What challenges have been identified in your jurisdiction to align hospital formularies with provincial drug plan formularies? The survey questions on collaboration asked respondents to Describe any ongoing initiatives their institution is initiating or exploring to better support their drug review process? How provincial drug plan formulary decisions influenced their drug formulary decisions? Were there any formal policies or informal processes in place and/or any initiatives underway to align with provincial drug plan recommendations?  What challenges have been identified in their jurisdiction to align hospital formularies with provincial drug plan formularies?

Limitations Not a comprehensive review Do not represent perspective of public drug plans Perspective of health authorities and/or hospitals only Small sample size Identify potential trends Possible explanations around existing variations Encourage further discussion It should be noted that the findings of the survey are not intended to provide a comprehensive review of the topic The finding only represent perspective of health authorities and hospitals only and NOT that of the public drug plans. As only a small fraction of organizations operating in any province or territory were surveyed, it is not the intent of this report to represent the requirements and opinions of all the health authorities and/or hospitals across Canada. The sole purpose of this report is to identify potential trends in collaborations, explore possible explanations around existing variations in formularies and most importantly, to encourage further discussion on these issues.

Findings

Level of Collaboration between Hospitals and HAs in a province/territory Public Drug Plan, and HAs and Hospitals in a province/ territory The findings section will explore the level of collaboration between hospitals and HA in a province/territory; an between public drug plans, and HA or hospitals in a province/ territory.

Level of Collaboration No. of Respondents (Total 19) Use public drug plan formulary as a resource in the formulary decision-making process at their institution 13 Formal or informal policies and/or processes to align their formularies with provincial public drug plan 10 Public drug plan representative in their respective institution’s P&TC. 3 Formulary decision-making process is an independent process, with no collaboration with the drug plans. 4 A committee (mandated by legislation) to make formulary decisions for public drug plans, and health authority and hospital formularies. 1 (PEI) Out of the 19 respondents, . recommendations. Kathleen you can state this as is. Of note: These numbers will not add up to more than 19 because jurisdictions may have more than initiative in place

Examples of Collaboration BC A provincial committee that has representatives from all HAs as well as membership from the public drug plan. Information is shared between drug plan and P&TC. AB No formal policy to align with the drug plan but efforts are made to be consistent when possible. SK Re-establish the P&TC in the region as a multidisciplinary group. Committed to alignment when possible. Serving as a conduit between a hospital formulary committee and in the provincial expert advisory committee . MB Re-evaluating the role of the provincial D&TC. Not formal process by hospital consider drug plan formulary Informal discussions These slides provide examples of some of the collaborations that are taking place in the various jurisdictions. It should be noted that these were examples given by the respondents, and may not be reflective of all the initiative taking place in that jurisdiction. BC: The BC P&TC is a provincial committee comprising representatives from all the health authorities. The BC provincial D&TC has membership from the BC public drug plan. The BC public drug plan and the BC P&TC share information on drugs to be reviewed, including timelines, evidence reviews, drug decisions, and implementation timelines. AB: in Alberta there is no formal policy to align with public drug plan but the respondent said that there are efforts being made to be consistent with the drug plans when possible SK: Saskatchewan is exploring the possibility to re-establish the P&TC in the region as a multidisciplinary group. One provincial RHA pharmacy working group is committed to listing (when possible) medications that also have a public drug plan formulary listing. One respondent attempts to ensure consistency in decision-making by serving as a conduit since he is on a hospital formulary committee and in the provincial expert advisory committee MB: Manitoba is revaluating the role of the provincial D&TC, as well as the costs associated with automatic substitution practices. Although not a formal process, however, the hospital considers the public drug plan formulary such as post-discharge implications. In addition, informal discussions occur, with the aim of greater continuity of care between institutional and outpatient settings.

Examples of Collaboration ODB formulary is used as a reference Collaborative consultation between hospitals within a LHIN Share the drug review process work (telepharmacy) In-house policies that allow community products to be continued NB Informal effort to align with public drug plan formularies Share in-house reviews with other HAs and provinces, when possible. NS Public & private drug plan formularies considered (guidance) PE A single provincial D&TC NL Requested for a public drug plans representative to be a member at the health authority’s P&TC. ON: The ODB formulary list is used as a reference to assist with formulary decision-making. There is collaborative consultation between hospitals within a LHIN regarding formulary decision-making and access. One respondent who work in Telepharmacy is also looking at ways to share the drug review process work to be more efficient between pharmacist (telepharmacy). One hospital stated that they have in-house policies that allow community products (that are not listed in the hospital formulary) to be continued in the hospital if a substitution policy is not in place or not appropriate. NB: There is an (informal) effort to align with public drug plan formularies. They share the reviews that are done in-house with other health authority and provinces, when possible. They also use a provincially shared file site (SharePoint) to facilitate file sharing, and document storage and retrieval. NS: Public and private drug plan formularies are considered when making formulary decisions but this is only used as a guidance PEI: PEI has recently established a single provincial D&TC, and the alignment is expected to occur through this single provincial D&TC. They are initiating a common approval process for drugs funded in acute care, as well as those delivered through the private sector (i.e., community pharmacies) being vetted by the provincial D&TC. Pharmacist positions that support the various subcommittees of the provincial D&TC work closely and provide a measure of support to each other. NL: The organization has made a request for a government representative (i.e., from the public drug plan) to be a member at the health authority’s P&TC.

Challenges in Aligning Hospital Formularies With Provincial Drug Plan Formularies In general, all respondents agree that consistency between formularies of public drug plans, and of hospitals and health authorities. There are various levels of efforts taking place at the jurisdictions. At the very least, hospitals and health authorities consider public drug plan coverage when making formulary decisions in the interests of consistent treatment options for patients. However, they also outline various challenges in such collaboration. They consider that the challenges arise due to the following factors.

Challenges Role in the Health Care System Perception of public drug plans solely as the funders Factors Affecting the Overall Cost of Drug cost of managing an illness and hospital contract cost Decision-Making Process Factors influencing decision making. Limit hospital formulary listings to guide best practices. Viewpoints on who should influence decision making   Role in Health Care System: Some respondents perceived the public drug plans solely as the funders of the drugs as opposed to hospitals who are funders, suppliers, and administrators of drugs. This was attributed to the resulting differences in the cost of the drug to the institution. Additionally, partial reimbursement is an option for public drug plans but not for the hospitals, which have to either pay the total drug cost or not cover the drug at all. Factors Affecting Cost Hospitals and health authorities also consider the cost of managing an illness, which includes costs associated with human resources, ethical considerations, quality of care, etc. Tthese additional considerations may lead to an increase or decrease in the overall cost of adding a drug to a hospital formulary. These additional factors result in the differences between the drugs listed in the hospital formulary and those in the public drug plan formulary.   Hospital contract costs can be significantly different from public drug plan costs. Different drug purchasing contracts (group purchasing organizations) in secondary care also create inconsistency in the cost between the public drug plan, and the health authority and hospital formularies. Decision-Making Process The same evidence may be seen from widely different points of view, which creates conflict in the formularies. One example given was that hospitals perceive that cost negotiations may take precedence over the evidence or a CDR recommendation, therefore making it difficult for hospitals to align their formularies with that of the public drug plan. In addition, hospitals may have to limit hospital formulary listings to guide best practices by having the most effective products available, to address safety concerns to limit the number of products practitioners need to be familiar with, and to decrease inventory and associated cost. One respondent shared his view that specialists in the hospitals should be informing community practice and not the other way around. However, another respondent expressed concern over the influence of physicians on formulary decisions.

Challenges Implementation and Resources Implementation of new medications, Inventory issues and aligning with federal and provincial plan. Product Type Different therapeutic considerations; access to emerging treatment (tertiary care centers); hospital formulary more restrictive in general. Additional Issues Lack of resources to support a single equitable process Variation in local implementation Implementation and Resources Implementation of new medications in the hospital formulary takes time, as there may be many internal policies and procedures that need adapting — for example, staff education, pre-printed orders, therapeutic interchange policies, purchasing systems, and contracts. However, it is perceived that a public drug plan decision is active as soon as it is announced. Respondents also claimed that inventory issues (storage, expiry dates) and associated costs are concerns for hospitals but not for public drug plans.  In addition, hospitals face challenges when they have to align with federal and provincial public drug plans whose formularies are not consistent with each other.   Product Type Hospitals carry hospital-only products that would not be on the public drug plan formulary, a reflection of the different therapeutic considerations for treatment in acute settings. In addition, in tertiary care, specialists need to have access to emerging treatment options, and there may be off-label use of drugs for rare indications. hospital formulary is more restrictive for drugs within a therapeutic class and utilizes therapeutic interchanges that are not used in public drug plans. This requirement was attributed to the Accreditation Canada’s standard, which requires hospitals to minimize therapeutic duplication, limiting the different strengths of products supplied. Additional Issues One respondent shared that there is a lack of resources to support a single equitable process, although the support is growing. Another respondent stated that local implementation may vary across the country and among institutions, depending on financial resources and the availability of specialists with the knowledge to safely and effectively use certain drugs and non-drug technology.

Conclusion Various ongoing (formal/informal) efforts establishing a single committee to make formulary decisions for both public drug plans and hospitals in a province, establishing a single provincial hospital formulary, establishing provincial-level working groups or advisory committees, re-evaluating the role of the P&TC, and/or sharing drug reviews between institutions. In Conclusion, the survey indicates that there are various ongoing efforts to ensure continuity of care for patients by making consistent formulary decisions. Some of these (formal/informal) efforts include establishing a single committee to make formulary decisions for both public drug plans and hospitals in a province, establishing a single provincial hospital formulary, establishing provincial-level working groups or advisory committees, re-evaluating the role of the P&TC, and/or sharing drug reviews between institutions.

Conclusion Hospitals and HAs consider public drug plan coverage. Challenges in aligning with the public drug plan due to differences in the roles of these institutions in the health care system, factors affecting the overall cost of adding a drug to a formulary, decision-making processes, implementation and resources issues, product types. The majority of the respondents indicated that hospitals and health authorities consider public drug plan coverage when making formulary decisions in the interests of consistent treatment options for patients.   Respondents, however, stated that there are various challenges in aligning with the public drug plan formulary. These challenges arise because of differences in the roles of these institutions in the health care system, factors affecting the overall cost of adding a drug to a formulary, decision-making processes, implementation and resources issues, and product types. It should be noted that the challenges discussed represent only the perspective of the health authorities and hospitals surveyed. Hence, these comments cannot be generalized to the wider formulary decision-making bodies at hospitals, health authorities, or public drug plans. Rather, the purpose of this report is to identify potential trends and possible explanations around existing variation in these drug formularies and, more importantly, encourage further discussion among the relevant bodies.