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Drugs and Money: Prices, Affordability and Cost Containment by M. N. G. Dukes

By M. N. G. Dukes

Through the years, many nations have approached the area health and wellbeing association for recommendation or details at the feasibility of measures to regulate the expansion of expenditure on medicinal drugs. Such demands aid led the association to adopt a learn as early as 1983. The document "Drugs and cash" was once familiar and again and again up-to-date. This variation goals to supply coverage makers and regulators with a compact and sensible overview of some of the ways which have been built and validated thus far for you to comprise the general charges of pharmaceutical companies and drug therapy. the real paintings of excellent home tasks during this box is obviously to make sure that medicines proceed to profit society anywhere they could, whereas disposing of each type of waste of public cash. The publication additionally addresses problems with the association, stands and supply of overall healthiness care. This quantity devotes huge recognition to the certain difficulties of constructing nations and people the place the economic system is at present in transition.

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Sample text

Again, as in capitation systems, a fixed fee per prescription system renders it necessary to prohibit pharmacies by regulation from placing an additional mark-up on the drugs which they dispense. 3. 1. 1. The concept of a positive list A list of those medicines eligible for reimbursement is usually called a positive list. The opposite of a positive list is naturally a negative list, specifying those drugs which will not be reimbursed. The National Health Service of the United Kingdom maintains a negative list on which about 129 substances are placed.

Budgetary constraints) to act in a cost conscious manner. H. M. Haaijer-Ruskamp / Policy options for cost containment of pharmaceuticals 33 Some bodies, mainly in the public sector, use tender systems. This is often the case when vaccines are purchased for immunization campaigns or when drugs are bought for the armed forces or to provide a strategic reserve. In developing countries, tendering is commonly used to cover the needs of hospitals and primary clinics for essential medicines. An example of a negotiation model can be found in France, where the government controls prices through direct negotiations before the launch of a product.

H. M. Haaijer-Ruskamp / Policy options for cost containment of pharmaceuticals multinationals and their far from transparent earnings and costs; it is significant that the British PPRS scheme operates in a country where a substantial part of the market is still in the hands of domestically based producers. 3. Comparative pricing systems In comparative pricing systems the prices of identical or similar products marketed in certain other countries are compared to the prices of products on the domestic market.

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