Expenditure on medicines in Nyeri County between 2014 and 2017: a retrospective analysis using the ABC and VEN classifications of medicines.

Date
2018
Authors
Murigi, Beatrice Wangui
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Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This research aimed at evaluating the category of medicines that consumed most of the allocated budget in Nyeri Couty and assessing whether Nyeri County procured the right medicines, at the right cost, in the right quantities. The archival method was used to collect medicines procurement data from the following 5 hospitals: Nyeri County Referral Hospital, Karatina Sub-County Hospital, Mukurwe-ini Sub-County Hospital, Othaya Sub-County Hospital and Mt. Kenya Sub-County Hospital. Medicines shortfall analysis, cost analysis, the ABC method, the VEN method, and ABC-VEN matrix analysis were the study tools used to analyze the data.The findings revealed that all the five hospitals reported insufficient budgetary allocation for medicines, with Nyeri County Referral Hospital having the highest budgetary shortfall of (58.60%) while Mt.Kenya Sub-District Hospital had the lowest shortfall of (9.44%). To curb these shortages, the researcher proposes that the government should promote economic growth. The ABC-VEN matrix analysis of the five hospitals revealed that about 10% of the items consumed about 70% of the annual drug expenditure (ADE) of the hospitals. These items are vital, hence had to be procured. To prevent locking up of capital due to these items, the researcher proposes that low buffer stock needs to be maintained while keeping a strict vigil on the consumption level and the stock in hand.
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Keywords
Medicines shortfall analysis, Cost analysis, ABC method, ABC-VEN matrix analysis
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