Background: Adverse drug reactions (ADRs) are significant causes of morbidity and mortality worldwide and also increase the healthcare cost due to hospital admission and extended hospital stay. Many countries spend 15–20% of the hospital budgets to treat drug-related problem. In India, the frequency of ADRs to individual drugs and their economic burdens are rarely evaluated. Aim: The aim of this article was to study the frequency and pattern of occurrence of ADRs and their economic impact in a hospitalized patient. Materials and methods: The prospective, observational study was carried out in four wards of the general medicine department. The WHO's definition of an ADR and intensive monitoring method was adopted. The direct cost imposed by ADRs was calculated using the available resources and indirect cost according to the human capital approach. The frequency and pattern of ADRs were evaluated. Results: A total of 3012 patients were intensively monitored and among them 317 patients were identified with ADRs. Among 317 patients, 8.8% of the patients developed ADRs during the hospital stay, 1.7% patients were admitted to hospital due to ADRs, death due to ADRs was 0.32%, and the overall incidence of ADR was 10.5%. The higher frequency of the ADRs was observed with methotrexate (33.33%), followed by dapsone (23.8%) and antitubercular drugs (ATT) (22.58%). The average cost per patient in the management of ADRs was ₹3367. Conclusion: Early detection and prevention of ADRs reduce the morbidity, mortality, and healthcare expenditures. The outcome of this study may be used to predict and prevent ADRs, which results in the effective healthcare budget of the hospital.
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