VED Analysis: V-Ed Analysis In A Hospital

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V-E-D Analysis: V-E-D Analysis is based on critical values and shortage costs of the items based on their critically, the items could be classified into three categories: Vital, Essential and Desirable.
»» Vital Items: There are several vital items in the inventory of a hospital which could make the dif- ference between life and death. There can be serious functional dislocation of patient care when such items are not available even for short period adversely affecting the image of the hospital. Such items should always be stocked in sufficient quantity to ensure their constant availability. This group of items should be controlled by top management.
»» Essential Items: The shortage of such items can be tolerated for a short period. If these
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Desirable items should be controlled by middle/ lower level management.
Steps to perform VED analysis
»» Classify all drugs on the list as V, E, and D.
»» Analyse D items, where possible, reduce quantities to be purchased or eliminate purchases en- tirely.
»» Identify and limit therapeutic duplication.
»» Reconsider proposed purchased quantities.
»» Find additional funds if needed.
Application of VED analysis
»» VED classification should be done at regular basis as list is updated regularly and public health priorities also change.
»» Drugs ordering and stock monitoring should be directed at vital and essential drugs.
Safety stock should be higher for vital and essential drugs.
»» Enough quantities of vital and essential drugs should be bought first.
»» Procuring and storing of VED drugs ensures all time availability of very essential drugs in health facilities.
Once VED analysis is done, a comparison should be made between the ABC and VED analyses in order to identify whether there is relatively high expenditure on low priority drugs. In particular, effort should be made to delete
“D” drug that are in the high cost/high consumption category of the ABC
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