Publication:

ABC–VED matrix analysis of drug inventory management in a tertiary care teaching hospital: a retrospective observational study

Background Drug inventory management is essential for ensuring uninterrupted availability of medicines while maintaining financial sustainability in tertiary care hospitals. ABC analysis categorizes drugs based on expenditure, whereas VED analysis classifies them based on clinical criticality. The combined ABC–VED matrix provides a comprehensive approach for prioritizing managerial control. The present study aimed to analyse drug inventory using ABC, VED, and ABC–VED matrix methods in a tertiary care teaching hospital.

Methods A retrospective observational study was conducted using pharmacy procurement records over a one-year period at tertiary care teaching hopsital, New Delhi. Data on annual drug expenditure (ADE) for 4,581 drug items were analysed. ABC analysis categorized drugs according to expenditure, VED analysis classified drugs based on clinical importance, and an ABC–VED matrix was constructed for prioritization. Data were analysed using descriptive statistics.

Results Of 4,581 drug items, 1,003 (22%) were classified under Category A accounting for 70% of ADE; 1,245 (27%) under Category B accounting for 20%; and 2,333 (51%) under Category C accounting for 10%. VED analysis showed 1,423 (31.06%). Vital items accounting for 30.44% of ADE; 2,758 (60.20%). Essential items accounting for 57.12%; and 400 (8.53%) Desirable items accounting for 12.44% of ADE. The ABC–VED matrix identified 1,967 (42.93%) items under Category I consuming 78.91% of ADE.

Conclusions ABC-ED matrix analysis is an effective tool for rational drug inventory control in tertiary care hospitals. Focused monitoring of Category I drugs can improve financial efficiency while ensuring uninterrupted patient care.