Drug Pricing Process

Subject to modification by the VTH Director without approval.

Policy

This policy explains how drug prices are determined and applies to all drugs entered into the HIS by dispensary staff. The drug base fee should be priced consistently regardless of whether they are accessed from the dispensary or the Cubex.  The dispensing fee will vary based on where the drug is obtained from. Categories will be Cubex, Dispensary, Cleanroom, Chemo, and Non-Sterile Compound with the current fees approved by VTH Administration and/or the VTH board.

Guidelines

Prices should be based on what an rDVM or retail pharmacy could sell the drugs for, so as to not undercut outside practitioners. Some products may be priced higher as needed based on our acquisition prices and overhead costs.

Procedure (if applicable)

1. When a drug is ordered and received, update the acquisition cost in the HIS 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.
3. The special cost for the orange code should be the same as the acquisition cost.
4. If the special price needs updated, do the following:

• • Verify the price of the medication at 2 outside sources.  For Large Animal medications, use Valley Vet, PBS Health and/or FarmVet. For small animal medications, use Chewy, Walmart Rx, 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.

5. Mark up percentage should be the same across all entries for the medication for small animal. Large animal markup percentage may differ from small animal based on the anticipated quantity being prescribed.

Definitions (if applicable)

HIS – Health Information System

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.