In hospitals, formulary medications are jointly approved in a Pharmacy and Therapeutics Committee by both Medical and Pharmacy staff, with input from specific medical specialists as needed . Choice of medications are based on safety/adverse effect profiles, level of effectiveness, use based on best practice evidence-based studies, and a cost-effective review of risk/benefit comparing older, less expensive meds to newer drugs entering the market.
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Usually of the BFAD or FDA. Bureau of Food and Drug Administration or Food and Drug Administration