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The case for a value-based formulary: striving for total lowest net cost.

A value-based formulary, supported by a full-disclosure financial model, ensures the use of the most appropriate drugs at the lowest net cost. It is a complex process that requires a high level of ongoing due diligence by the Pharmacy & Therapeutics Committee responsible for managing an organization's formularies. Choosing the appropriate drugs for a formulary goes beyond safety, efficacy, and pricing. These are important factors, but determining the appropriateness of a drug also involves demographic considerations, compliance probabilities, and a comparison of desired medical outcomes.