formulary decision-making

Formulary decision-making is the process healthcare providers and payers use to determine which medications should be approved for use and covered. It involves evaluating drugs based on their effectiveness, safety, cost, and value, often considering research, clinical guidelines, and patient needs. The goal is to ensure patients have access to safe, effective treatments while managing healthcare costs responsibly. This process helps balance quality care with economic sustainability, guiding formulary committees to make informed choices about which medications to include or restrict in a healthcare plan.