A multimethod Analysis of Pharmaceutical Expenditure, consumption patterns and Clinical-Financial Value at Tibebe Ghion comprehensive specialized Hospital, Amhara regional state, Ethiopia, 2024

Abstract

Background: - Effective inventory management is essential to prevent stock-outs and overstocking. In Ethiopia, there remains a lack of multimethod studies that integrate procurement expenditure, issuing units, consumption patterns, Clinical-Financial Value and real-time stock status. Objective: - To assess pharmaceutical Expenditure, Stock Status, and Clinical-Financial Value using a multi-method analysis at Tibebe Ghion Comprehensive Specialized Hospital., Amhara regional state, Ethiopia. Method: - A descriptive mixed-method research design was employed, utilizing primary qualitative and secondary quantitative data sources. Data were collected from goods receiving vouchers and recording systems, with Microsoft Excel used for expenditure analysis based on pharmaceutical procurement parameters. The ABC matrix, holding cost analysis, pharmaceutical flow analysis, and stock status analysis were conducted, along with a facility-specific drug list categorized into VEN items. The study examined the frequency of movement and distribution of pharmaceuticals to service delivery points over a one-year period from July 8, 2023, to July 7, 2024. In-depth interviews were conducted to explore pharmaceutical inventory management practices. Result: - Pharmaceutical expenditure analysis showed that 87.9% of purchases came from government suppliers (12.1% from private sources via proforma 3.3% and open tenders 8.8%), ABC–VEN classification indicated that Category I items consumed 89% of spending while Category I in FSN–XYZ accounted for 77.5%, and issuance was mainly pharmacy (78.4%), lab (10%), OPD (11.5%), and others (0.1%); stock review revealed 16% overstock, 8% optimal, 9% low, and 67% shortages, with 29 items worth 297,267 birr nearing expiration. In the qualitative segment of the study, most participants indicated that inventory management practices were inadequate, and there was insufficient effort to procure pharmaceuticals from private suppliers. Conclusion: - Tibebe Ghion Hospital is hindered by inefficient inventory management practices stemming from poor data usage, weak analytical systems, and supply chain instability