M. N. G. Dukes's Drugs and Money: Prices, Affordability and Cost Containment PDF
By M. N. G. Dukes
Through the years, many nations have approached the area well-being association for suggestion or details at the feasibility of measures to regulate the expansion of expenditure on medications. Such demands support led the association to adopt a research as early as 1983. The file "Drugs and cash" used to be favourite and many times up-to-date. This variation goals to supply coverage makers and regulators with a compact and sensible overview of a few of the techniques which were built and established thus far for you to comprise the general charges of pharmaceutical companies and drug therapy. the genuine artwork of fine home tasks during this box is obviously to make sure that medicinal drugs proceed to learn society anywhere they could, whereas putting off each type of waste of public cash. The e-book additionally addresses problems with the association, stands and supply of overall healthiness care. This quantity devotes significant consciousness to the particular difficulties of constructing nations and people the place the financial system is presently in transition.
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Extra info for Drugs and Money: Prices, Affordability and Cost Containment
Institutional buyers such as hospitals, health insurers, regional and national governments, on the other hand, have more technical expertise and information than do individuals and are, due to budgetary constraints, sensitive to the prices of drugs. Furthermore, due to their size and resources, they can exercise considerable bargaining power, and are capable of negotiating prices with the supply side of the market. Negotiation on prices is made easier for buyers when (generic) substitutes are available.
If for example the level of co-payment for an valuable but expensive drug is deliberately set at a low level so as preserve its accessibility, whereas a low-priced item in the same therapeutic category carries a high co-payment, one may thereby create a “perverse” incentive; the prescriber and patient who would ordinarily have chosen the low-priced drug may move to the expensive item in order to evade the high co-payment, resulting in a greater cost to the public purse. Similarly, when implementing a system of ﬂat rate co-payments (for example a ﬁxed sum per prescription) one should also implement measures to limit the dispensed volume per prescription.
One also encounters systems in which only the pharmacy selling prices are regulated, while manufacturers, importers, wholesalers and pharmacies negotiate with each other on their charges and margins. The most difﬁcult step in developing any price control system is the establishment of a “fair” price. H. M. Haaijer-Ruskamp / Policy options for cost containment of pharmaceuticals 31 of a negotiating process between the supplier and the user. Consumer markets are usually transparent and it is possible to obtain information on product characteristics and to compare prices.
Drugs and Money: Prices, Affordability and Cost Containment by M. N. G. Dukes