Drug Pricing Process

Implementation Date: 10/2021

Date of Last Revision: 3/7/2023

Next Review Due: 3/6/2025

 

Reviewed by VTH Administrative Team: 10/2021

Reviewed by VTH Board: N/A

 

Approved by VTH Director: 10/2021

Reviewed by Biosecurity Subcommittee: N/A

Subject to modification by the VTH Director without approval.

Policy

To explain how drug prices are determined, this applies to all drugs entered into the HIS (Health Information System) by dispensary staff. Drugs should be priced consistently regardless of whether they are accessed from the dispensary or the Cubex. Drugs obtained from the dispensary will have an $8 - $15 dispensing fee (depending on item type) and tax charge, while drugs obtained from the Cubex will have a $1 dispensing fee and no tax charge. 

Guidelines

Prices should be based on what an rDVM or retail pharmacy could sell the drugs for, so as to not undercut outside practitioners or overprice our product

Procedure (if applicable)

1. When a drug is ordered and received, update the acquisition cost in HIS (Health Information System) for all entries of that medication. This may include EMS, Farms, anesthesia, purple codes, orange codes (ward stock/ research), and active black codes.
2. Verify that the special price has been updated within the last six months and that it is not less than our acquisition cost. Make sure this number is the same across all entries except for the orange code (ward stock/research). 
3. The special cost for the orange code should be the same as acquisition cost.
4. If the special price needs updated, do the following:
   

   • Verify the price of the medication with at least 2 outside sources. For Large Animal medications, use Valley Vet, PBS Health and/or FarmVet. For small animal medications, use Chewy, Walmart Rx, AlliVet, or PetMeds. If the medication is not available from any of these sources, then use GoodRx to determine what an outside pharmacy would charge. If medication cost info is not available from any of the above, then contact an rDVM to determine what their purchase / selling price of the medication is. 
   • Update the special price to the acquisition cost from an rDVM or to something slightly less than one of the other places is selling the medication for. If the drug has an EMS code, the special price times the markup or the sale price should be comparable to the outside comparisons.
   • Make sure the special price and date updated are the same across all entries for that drug for small animal. 
   • For Farms drugs, consult with technicians to determine if the medication should be priced slightly lower than ValleyVet to retain business. If yes, then price about $1.00 less than the ValleyVet price.

5. Markups should be the same across all entries for the medication for small animal.
6. Cubex codes should have the appropriate price code for the $1 dispensing fee and as non-taxable.
7. Dispensing fees are as followed: 
   $15 for clean-room prepared drugs* 
   $10 for veterinary compounds 
   $8 for all other drugs 
   
   *This excludes chemotherapy drugs due to the Chemo Prep fee
   
   

Definitions (if applicable)

Veterinary Teaching Hospital (VTH): The collective clinical services of the Large Animal Clinic, Midwest Equine, the Small Animal Clinic, and the Veterinary Medicine South Clinic.