Economic grand rounds: experience with mandated use of generic medications for patients covered by the mental health safety net.

Psychiatr Serv

Dr. Amirsadri and Dr. Arfken are with the Department of Psychiatry and Behavioral Neurosciences, Wayne State University, Detroit. Dr. Chapman is with Gateway Community Health, Detroit. Mr. Breen and Dr. Drake are with Advanced Care, Shelby Township, Michigan. Send correspondence to Dr. Arfken (e-mail: Steven S. Sharfstein, M.D., Haiden A. Huskamp, Ph.D., and Alison Evans Cuellar, Ph.D., are editors of this column.

Published: July 2014

Reducing pharmacy costs without increasing adverse outcomes would relieve some pressure on mental health budgets. This column describes the experience of a publicly funded provider network in a Michigan county that mandated generic use of psychotropic medications to address financial challenges. The percentage of brand-name medications and cost per prescription declined with the policy change, resulting in lower total pharmacy expenditures. No increase was noted in prescriptions per patient or psychiatric hospitalizations. Changes were sustained after the initial implementation period. Mandating generic use may be feasible as a tool for constraining pharmacy costs in mental health budgets.

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Source
http://dx.doi.org/10.1176/appi.ps.201400075DOI Listing

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