* Foodservice estimate extracted from Bureau of Labor
Statistics
** Beginning with this issue of the Inflation
Indices, pharmaceutical inflation figures will be derived from Premier’s
Drug Budget Development Tool. The drug budget development tool analyzes
the top 85 percent of drug purchases, both on-contract and non-contract
items based on July 2008 through June 2009 member purchases. Estimates
of inflation indices for each line item are based on July 2008 to July
2009 prices corrected for the recent generic bid roll, recent changes in
contract prices, and anticipated first-time generic approvals. Inflation
figures are updated monthly and the tool is recalculated semiannually.
The drug budget development tool and instructions for its use are
available on Premier’s Web site at www.premierinc.com/pharmacy. Click on
Contracting and look for the budget tool button in the left navigation
bar. The tool is used with SpendAdvisor™ to analyze over 80 percent of
your on- and non-contract items. The total time to run SpendAdvisor™ and
the tool is generally less than 10 minutes.
PLEASE NOTE: The
range of increases is based on the high and low supplier estimate for
the various products within the category. The range does not take into
account Premier contract price protection or utilization data. The
Supplier average percent increase is based on a true average, while the
Premier average is a weighted average.
Sources of information
The inflationary estimates are intended to reflect
industry-wide changes only. Based on contractual price protection and
ongoing negotiations, the impact on Premier members should be less than
industry predictions.
The information in the indices is derived from a
broad spectrum of industry and membership sources, as well as the
insight of the Premier contracting staff. The percentages represent the
best estimates from all of these sources. Actual inflationary changes
are subject to social, economic, and political pressures, which are
impossible to predict accurately.
