NEWSROOM
Preventable adverse drug reactions: a major hidden cost driver in healthcare
Research Insight
Adverse drug reactions (ADRs) represent a significant yet often underestimated burden for healthcare systems worldwide. Studies suggest that around one in ten hospital admissions are caused by adverse drug reactions, making them one of the most common medication-related causes of hospitalisation.
Beyond the clinical consequences, ADRs also carry a substantial economic impact.
16.3.2026

The IATROSTAT-ECO study examined the cost of hospital admissions related to adverse drug reactions. In the study population, around 200 ADR patients generated total hospital costs of approximately €1.17 million, illustrating the substantial resource use associated with these events. The average cost per ADR admission was around €5,000–€6,000, with individual cases ranging from €618 to €27,380 depending on severity and length of hospital stay.
When multiplied across national healthcare systems, the financial implications become significant.
A large share of ADRs could be prevented
Importantly, not all adverse drug reactions are unavoidable. The study estimated that approximately 15% of ADRs were considered preventable based on the researchers’ assessment, highlighting a meaningful opportunity to improve both patient safety and healthcare efficiency.
Preventable ADRs often arise from factors such as:
- drug–drug interactions
- inappropriate dosing
- patient-specific risk factors
- insufficient monitoring
- polypharmacy in high-risk populations
Addressing these risks requires systematic approaches to medication safety and improved access to clinically relevant drug information at the point of care.
The economic impact at national level
The scale of the economic burden becomes even clearer when looking at national estimates.
The IATROSTAT-ECO study estimates that ADR-related hospital admissions cost approximately €1.3 billion annually in France.
When these estimates are scaled to a country with around 10 million inhabitants – such as the Czech Republic – this corresponds to roughly €200 million per year in hospital costs related to ADRs, of which around €30 million may be preventable.
Even modest reductions in ADR incidence could therefore generate significant savings. For example: Preventing 1,000 ADR admissions per year could save approximately €6 million in hospital costs.
These figures do not yet include additional benefits such as reduced readmissions, improved staff productivity, and better patient outcomes.

Prevention improves both safety and efficiency
As healthcare systems face increasing pressure from ageing populations, complex therapies and polypharmacy, the need for effective ADR prevention strategies becomes even more critical.
Key prevention approaches include:
- systematic medication reviews
- identifying high-risk patients
- monitoring complex drug therapies
- improving clinical decision support for medication management
In practice, preventing adverse drug reactions is not only a matter of patient safety. It is also a powerful way to improve healthcare efficiency by reducing avoidable hospital admissions and freeing up valuable clinical resources.extremely interesting innovation will soon gain momentum with the forecasted trends in medtech for 2026.
Supporting safer drug therapy decisions
Medbase provides scientifically validated and clinically relevant drug information that supports healthcare professionals in making safer medication decisions. By integrating high-quality drug information directly into clinical systems and workflows, Medbase helps clinicians identify medication risks earlier and support safer drug therapy decisions.
Improving medication safety requires both clinical expertise and reliable information. When these elements are available at the point of care, healthcare professionals are better equipped to prevent adverse drug reactions before they occur.
Ultimately, preventing adverse drug reactions is not an added cost. It is a financially sound investment that improves both patient safety and healthcare system sustainability.
References
- Laroche ML et al. Economic burden of hospital admissions for adverse drug reactions in France: The IATROSTAT-ECO study. Br J Clin Pharmacol. 2025.