TITLE: Pharmacoeconomic Analysis of Ultraceph and Megaceph BACKGROUND: Two new antibiotics, Ultraceph and Megaceph, were recently approved by the Food and Drug Administration. Both work equally well on the same spectrum of bacteria (i.e., their scope and efficacy have been shown to be equal), and the products are priced similarly. Ultraceph is dosed intravenously at 25 mg, three times per day. Ultraceph is affected by liver functioning, so monitoring is needed. Megaceph is dosed intravenously at 75 mg once per day and is associated with a 0.1% chance of hearing loss, which is reversible if caught within the first 2 days of treatment. METHODS: The purpose of this study was to compare the costs to Mercy General Hospital between patients who received Ultraceph versus Megaceph. Patients admitted to the hospital during the first 6 months who met study criteria were randomly given either Ultraceph or Megaceph. Medical and billing records for each patient were used to estimate costs. Costs were estimated using two methods: using billed charges and estimating costs using an overall hospital cost-to-charge ratio of 47%. RESULTS: A total of 212 patients were included in the study (105 on Ultraceph and 107 on Megaceph). Effectiveness for these two groups of patients was similar. Total costs, on average per patient, for Ultraceph were $332 more than Megaceph when using cost estimates based on charges and $156 more when using cost-to-charge estimates.    -What is the perspective of the study? How do you say so?