Cost containment measures

This book consists of a series of works that evaluate various aspects related to the public financing of pharmaceuticals. In all health systems with majority public funding, the financing of pharmaceuticals constitutes one of the key factors in reform policies and health cost containment measures. This importance of pharmaceutical spending can be explained by both its relative size (its share within health expenditure as a whole), and its rapid growth, which is closely related to the constant incorporation of therapeutic innovations. 

Table 10.11 Some cost-containment measures in the pharmaceutical sector... 

Traditional cost-containment measures are not always consistent with improved patient care. Thus attention has turned toward demonstrating the value of health care. A full evaluation of relevant costs and consequences differentiates outcomes research from traditional cost-containment strategies. Costs are defined as the value of the resources consumed by a program or treatment alternative. Consequences are defined as the effects, outputs, and outcomes of the program or treatment alternative (Eisenberg, 1989). 

The pharmacist identifies how drug costs may be minimized through appropriate use of dmgs in the ICU and through implementation of cost-containment measures. 

Jung, B. Andrews, J.D. Effectiveness of an antibiotic cost containment measure. Can. J. Hosp. Pharm. 1990, 43, 116-122. 

The very rapid growth of expenditure on medicines is of particular concern and it has attracted considerable political attention, in part no doubt because it is a concrete issue which at first sight appears readily amenable to economic control. That hrst impression has often proven misleading despite the impressive variety of cost containment measures which have been devised over the years, drug expenditure has remained high and as a rule it has continued to grow. 

In order to avoid high CO prices or price spikes, cap-and-trade schemes may implement cost-containment measures, including offset provisions, borrowing provisions or price caps. If these provisions are present in one of the linked systems, they will be made available to participants in the other system regardless of whether the other system has the same provisions (Stavins and Jaffe, 2007). The unlimited import of low-cost credits from other sectors and regions will reduce the CO price and total abatement costs in a cap-and-trade system. However, if policy-makers... 

On the surface, the EU 20% case and the US targets being discussed therefore appear to be similarly strict. In all cases the same baseline year is used and the reduction percentages are similar, as are projected carbon prices. However, the 20% case is only the EU s fallback position. The EU is pushing for a comprehensive international agreement that would include a stricter EU commitment. In addition, one also needs to take into account potential US cost-containment measures. For example. 

Moreover, although cost-containment measures may be necessary to get political agreement in the short term, there is less opposition in the USA to absolute caps in the longer term. Therefore, US legislation could phase out cost-containment mechanisms over some time period. The Boxer-Lieberman-Warner proposal takes this approach. 

C. National differences in packaging-sterile products F. Cost containment measures... 

Cost containment measures provide fewer incentives for companies in the healthcare sector to invest in new technologies. Pharmaceutical companies, pressured by the soaring costs of bringing a new drug to the market want relief to sell into a free market and are dissatisfied with many governments current cost containment policies. 

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