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ABC analysis in hospitals of NCT of Delhi : Impact of drug policy Khanna N* , Tekur U*, Bhooi N** and Bapna J S** * Deptt. of Pharmacology , UCMS and MAMC , Delhi **IIMHR , Jaipur. Abstract. Background and Setting.

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ABC analysis in hospitals of NCT of Delhi : Impact of drug policyKhanna N*, Tekur U*, Bhooi N** and Bapna J S*** Deptt. of Pharmacology , UCMS and MAMC , Delhi **IIMHR , Jaipur

Background and setting
Background and Setting

  • The Delhi Drug Policy was implemented in 1994-95. Before this, essential drugs were not readily available in the hospital.

  • Drugs available in the hospital were not cost effective.

  • Unnecessary medicines, including herbal drugs were stocked.

  • EDL was published in 1994. Pooled procurement of drugs in all the Govt. hospitals started from 1995.

  • EDL has been revised every two years. 2002 was the latest one. Work is on for 2004.

Study aims
Study Aims

  • To conduct an ABC analysis of all the drugs procured in three hospitals of Delhi.

    * LNH: Lok Nayak Hospital

    * DDUH: Deen Dayal Upadhyay Hospital

    * LBSH: Lal Bahadur Shastri Hospital

Methods 1
Methods 1

  • The study was conducted in 3 hospitals of Delhi, vis LN, DDU and LBS.

  • Prior permission was obtained from Director Health Services, Delhi and MS of all the three Hospital.

  • Retrospective data was collected for the years 1993-94 and 1994-95 (pre-implementation period) and 2000-01 and 2001-02 (post implementation period). Details of data collected included name of drugs, dosage form, quantity procured and the total cost incurred by the hospital.

  • The drugs were further categorized as those belonging to the EDL of NCT of Delhi or not part of this EDL.

  • Data was subsequently analyzed according to ABC analysis in LN & DDU hospitals.

Methods 2
Methods 2




Consumption Value









Frequent ordering

One in 3 months

Bulk ordering





ABC Analysis

  • Examines the annual consumption of drugs & expenditures for procurement

  • Divides the drugs consumed into 3 categories

    • Class A ( 10 % of items : 75% of exp)

    • Class B ( 15 % of items : 15% of exp)

    • Class C (75 % of items : 10% of exp)

      Uses of ABC

  • Degree to which actual consumption reflects public health needs

  • Reduce inventory levels and costs

  • Seek cost reductions by finding lower prices on class A items

  • Ensure that large orders of class A items are handled expeditiously.

    Features of ABC Items

Abc of lnh

Results 2


Non essential drugs lnh a class
Non Essential drugs (LNH):A Class

Results 3

Non Essential drug (DDU):A Class

Non edl drugs in lnh in class a
Non EDL drugs in LNH in Class A

Results 4

Post drug Policy

No of non EDLs = 6

Pre drug Policy. No of EDLs = 12

Non EDL drugs in DDU in Class A

Post drug Policy

No of non EDLs = 3

Pre drug Policy. No of EDLs = 6


  • ABC analysis was done to determine the impact of Drug Policy in Hospitals of Delhi.

  • There was an increase in the %age procurement of drugs from the EDL after the implementation of drug policy.

  • Number of Non EDL drugs in the Class A category has reduced after the implementation of the drug policy

  • Stock outs have decreased

    • Implies increased availability of drugs

    • Improved service delivery

    • Leading to economic gains for the hospital

Conclusions and policy implications
Conclusions and Policy Implications

  • Drugs which appear very commonly in A Category should be included in the EDL.

    • Large amount of money has been spent on procuring Cefotaxime in all the hospitals. This could be taken into consideration while updating the EDL in future.

We are grateful toProf. R.R. Choudhary, President - DSPRUDWHO India EDP for providing financial assistance.