University-based drug information services provided on a contractual basis to the pharmacies of a pharmacy management company are described. Allied Pharmacy Management, Inc. (APM), the manager of 34 institutional pharmacies, 3 community pharmacies, and 6 long-term-care and infusion therapy pharmacies, determined a need to contract for the services of a drug information center. Centers meeting basic criteria were invited to submit proposals. After careful research and negotiations, APM chose the University of Tennessee Drug Information Center for a one-year contract beginning in November 1992. Services provided under the contract include drug information consultations, formulary drug class reviews, new drug monographs, drug-use evaluation (DUE) criteria, literature reviews, and newsletters. Seven months after the contract went into effect, APM-affiliated pharmacy directors stated that they were either satisfied or very satisfied with the quality of the answers to drug information requests, the newsletters, and the drug monographs and agreed overwhelmingly that the contract should be renewed. The contract has been renewed for second and third years. During the first year, the drug information center answered 155 questions and took 121 hours to do so. In the second year there were 244 questions, requiring 161 hours. In year 1 there were 21 formulary class reviews, 6 newsletters, 5 new drug monographs, and 1 set of DUE criteria. There have been 20-25 literature searches during each contract year. The drug information services provided by a university-based drug information center under contract with a pharmacy management company satisfied the directors of the affiliated pharmacies.