Drug manajement is a drug management cycle which include of selection,procurement, distribution and use. The purpose of this study was to evaluate drug management in Pharmacy Department of Poso Hospital of Central Sulawesi by using efficiency indicator and conducted improvement strategies by Hanlon method. The research using descriptive design to the data which retrospectively and concurrently. Data collected were qualitative and quantitative. All phases of drug management in Pharmacy Department of Poso Hospital of Central Sulawesi was level of measured the efficiency using Health Ministry (2008), Pudjaningsih (1996) and WHO (1993) indicators, then compared to the standard and descripted based on priority analysis of action plan by Hanlon method. The results showed that drug management system according to standards as follows : level of drug availability (14,75 months), generic prescription drugs (91,47%), average time to serve prescription (non drug concoction 5 & 12 minute, personalized medicine 15 & 17 minute), percentage of drug label (100%). Stage which are not standardized, is : DOEN suitability (54,82%), percentage of capital/fund (89,31%), percentage of fund allocation (29,73%), suitability drug plan with real (96,28%), frequency of drug procurement of each item was second times, drug stock card suitability (95,89%), ITOR value (8,57 times), percentage of expire/damage drug value (11,42%), percentage of dead stock (4,24%), average of drug item per prescription sheet (4). Priority of problem handling as follows : 1) Forming Pharmacy and Therapeutics Commite (PFT) and setting formulary, as well as monitoring and evaluation of drug management, 2) involving Pharmacy Department on procurement processes, 3) budget increase.