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. 2022 Aug 15;39(8):356–360a. doi: 10.12788/fp.0296

eAPPENDIX.

Calculations for Determining Direct Cost Savings

Cost of requested therapy
Cost of requested therapy = (daily drug acquisition cost) × (duration of therapy)
Cost of recommended alternative therapy
Cost of recommended alternative therapy = (daily drug acquisition cost) × (duration of therapy)
Duration of therapy was annualized or as stated if < 1 year
Cost of review for all CC PADRs
Cost of review for all CC PADRs = (cost per PADR) × (total PADRs)
Cost per PADR = (average time to completion) × (salary plus benefits)
Direct cost savings
Direct cost savings = (sum of requested therapies for CC PADR nonapprovals) – (sum of recommended alternative therapies for CC PADR nonapprovals) − (cost of review for all CC PADRs)

Abbreviations: CC, community care; PADR, prior authorization drug request.