What is the basic function of the National Drug Code (NDC)?

The National Drug Code (NDC) serves as a unique identifier for medications, which encompasses essential details such as the medication's manufacturer, formulation, and package size. This coding system enhances pharmacy operations and facilitates the tracking and identification of drugs across various settings, including dispensing and billing processes.

The structure of the NDC is specifically designed to categorize and systematize drug products, making it easier for healthcare providers, including pharmacies, hospitals, and insurers, to access accurate medication information. By providing such assurances, the NDC promotes medication safety, reduces errors, and enhances inventory management.

While classifications by therapeutic use or tracking distribution may be part of broader pharmaceutical practices, the main role of the NDC is its function as a comprehensive identifier, ensuring that each product is uniquely recognized in the healthcare system. Pricing information for medications and their variations is typically established through separate mechanisms and does not fall within the primary intent of the NDC system.