Policy financial

About the Authors Dr. Farmer is Associate Professor of Pharmacy Administration at the University of Oklahoma Health Sciences Center College of Pharmacy. He received a B.S. in pharmacy and Ph.D. in pharmaceutical sciences from the University of Missouri-Kansas City. Dr. Farmer has experience in retail and hospital pharmacy practice settings and marketing research in the pharmaceutical industry. He teaches courses in U.S. health care systems and policy, financial management, and pharmaceutical marketing. Dr. Farmer s research is focused on issues related to medication adherence and health and economic consequences of health and medication health care policies. 

The national policy and financial support in October 2007, revised through the energy conservation law of the People s Republic of China clearly put forward the state encourages and supports the development and utilization of new energy and renewable energy , the state will introduce tax preferential policies, financial incentives and market oriented. 

Cost of Capital The value of the interest rate of return used in calculating the net present value (NPV) of a project is usually referred to as the cost of capital. It is not a constant value since it depends on the financial structure of the company, the policy of the company toward a particular project, the local method of assessing taxation, and, in some cases, the measure of risk associated with the particular projec t. The last-named fac tor is best dealt with by calculating the entrepreneurs risk allowance inherent in the project i from Eq. (9-108), written in the form... 

In the absence of a rislc allowance the cost of capital becomes a technical financial computation based on sources of funds and company policy. As such it will usually be presented as a figure specified For use in a particular appraisal and is therefore of little concern to the projec t assessor. However, the following resume indicates the lands of Factors to be considered. 

Subsidy is a transfer of money from government to an individual or a firm to stimulate undertaking a particular activity. Subsidies and subsidy-hke programs arc major parts of energy policies. However, such energy grants are only one example of government aid and not the most important examples. The basic economic principle that people respond favorably to financial incentives implies that such transfers stimulate the action that is aided. 

The selection of the discount factor depends on the financial policy of the business, but is usually 2-3 per cent above the current interest rates. Use of discounting methods will determine whether the project cost will produce a better return than by simply investing the capital involved at the highest compound interest rate or, if the capital cost has to be borrowed, whether the rate of return is much higher than the cost of borrowing. 

Significant capital expenditure usually represents a substantial commitment of the resources of a business, both financially and in terms of man-hours. It is therefore incumbent upon management to ensure that proposals for such outlays receive proper and full consideration of all the relevant implications before implementation. Once policies as to levels of authorization and commitment are laid down, there should follow the formal appraisal of the financial effects of the proposal. These can be formulated only after detailed discussion with the appropriate departments as to all the physical, technical and environmental factors involved in making the final decision. There will also be brought into consideration, where pertinent, the marketing and sales effects. 

Many factors influence how a policy is implemented and whether it achieves its objectives effectively. Experience in policy implementation in many areas indicate the importance of good organization. A number of organizational attributes, such as a sound structure, efficient procedures, well-trained personnel and adequate financial resources, are considered cmcial for effective policy execution (18, 19, 20, 21). 

Acknowledges the financial support from the CNPq (Conselho Nacional de Desenvolvimento CientiTico e Tecnologico - Brazil) and the Federal Science Policy Office of Belgium (IPA Program). 

They held conferences and meetings to increase awareness on the part of key policy-makers from ministries of environment and industry, environmental management agencies, and financial institutions, in the hope that they will support the adoption of appropriate institutional policies. 

In Chapter 9, lecturers V. Ortun Rubio of Pompeu Fabra University and L. Cabiedes Miragaya of the University of Oviedo address the subject of measures intended as a way of influencing prescriber decisions. The authors place special emphasis on analysing prescriber incentive policies, distinguishing between incentives of a financial nature (both coercive and non-coercive) and non-financial incentives (information, training, treatment protocols, monitoring of prescription practices, cost-effectiveness guidelines, interaction with other professionals, pressure from patients and so on). The authors advocate incentive policies based on a combination of financial and non-financial incentives. 

To summarize, it should be highlighted that in general terms the issue of prescribing incentives is approached with a marked lack of consideration of such fundamental concerns as their impact on health, although this aspect is indirectly addressed by non-financial incentives and mixed formulas such as those discussed above. Financial incentives alone appear to lack effectiveness as instruments of pharmaceutical policy. Incentives aimed at prescribers should under no circumstances create a clash of interests between their fees and the quality of the care they provide for their patients, and therefore adjustment must be made in these terms. In turn, we cannot ignore that the effect of this type of mechanism on physicians behaviour will depend on, among other factors, the quality of available information on the aspects taken into consideration in their application. 

This chapter on prescriber incentives brings together various midpoints, all of them difficult to find. One of these midpoints concerns incentives (if there is one distinguishing feature of health care organizations it is the advisability of moderating the power of incentives in order to stop financial considerations from short-circuiting clinical considerations) another concerns the balance between health policy issues and industrial policy ones and a third concerns the influences exerted on prescription by the market, the state and clinical standards (the combination of financial and non-financial incentives). 

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