title: Policy options for pharmaceutical pricing and purchasing: issues for low- and middle-income countries.
abstract: Pharmaceutical expenditure is rising globally. Most high-income countries have exercised pricing or purchasing strategies to address this pressure. Low- and middle-income countries (LMICs), however, usually have less regulated pharmaceutical markets and often lack feasible pricing or purchasing strategies, notwithstanding their wish to effectively manage medicine budgets. In high-income countries, most medicines payments are made by the state or health insurance institutions. In LMICs, most pharmaceutical expenditure is out-of-pocket which creates a different dynamic for policy enforcement. The paucity of rigorous studies on the effectiveness of pharmaceutical pricing and purchasing strategies makes it especially difficult for policy makers in LMICs to decide on a course of action. This article reviews published articles on pharmaceutical pricing and purchasing policies. Many policy options for medicine pricing and purchasing have been found to work but they also have attendant risks. No one option is decisively preferred; rather a mix of options may be required based on country-specific context. Empirical studies in LMICs are lacking. However, risks from any one policy option can reasonably be argued to be greater in LMICs which often lack strong legal systems, purchasing and state institutions to underpin the healthcare system. Key factors are identified to assist LMICs improve their medicine pricing and purchasing systems.
authors.affiliation: Quality Use of Medicines and Pharmacy Research Centre, School of Pharmacy and Medical Sciences, University of South Australia, Adelaide, SA 5000, Australia Pharmacoeconomic and Pharmaceutical Administration Department, Hanoi University of Pharmacy, 13-15 Le Thanh Tong St., Hanoi, Vietnam School of Public Health and Community Medicine, University of New South Wales, High St, Kensington NSW 2052, Australia and Pharmaceutical Consultant, Adelaide Parade, Woollahra, NSW 2025, Australia Quality Use of Medicines and Pharmacy Research Centre, School of Pharmacy and Medical Sciences, University of South Australia, Adelaide, SA 5000, Australia Pharmacoeconomic and Pharmaceutical Administration Department, Hanoi University of Pharmacy, 13-15 Le Thanh Tong St., Hanoi, Vietnam School of Public Health and Community Medicine, University of New South Wales, High St, Kensington NSW 2052, Australia and Pharmaceutical Consultant, Adelaide Parade, Woollahra, NSW 2025, Australia Tuan.Nguyen@unisa.edu.au.
authors.forename: Tuan Anh
authors.initials: TA
authors.lastname: Nguyen
authors.affiliation: Quality Use of Medicines and Pharmacy Research Centre, School of Pharmacy and Medical Sciences, University of South Australia, Adelaide, SA 5000, Australia Pharmacoeconomic and Pharmaceutical Administration Department, Hanoi University of Pharmacy, 13-15 Le Thanh Tong St., Hanoi, Vietnam School of Public Health and Community Medicine, University of New South Wales, High St, Kensington NSW 2052, Australia and Pharmaceutical Consultant, Adelaide Parade, Woollahra, NSW 2025, Australia.
authors.forename: Rosemary
authors.initials: R
authors.lastname: Knight
authors.affiliation: Quality Use of Medicines and Pharmacy Research Centre, School of Pharmacy and Medical Sciences, University of South Australia, Adelaide, SA 5000, Australia Pharmacoeconomic and Pharmaceutical Administration Department, Hanoi University of Pharmacy, 13-15 Le Thanh Tong St., Hanoi, Vietnam School of Public Health and Community Medicine, University of New South Wales, High St, Kensington NSW 2052, Australia and Pharmaceutical Consultant, Adelaide Parade, Woollahra, NSW 2025, Australia.
authors.forename: Elizabeth Ellen
authors.initials: EE
authors.lastname: Roughead
authors.affiliation: Quality Use of Medicines and Pharmacy Research Centre, School of Pharmacy and Medical Sciences, University of South Australia, Adelaide, SA 5000, Australia Pharmacoeconomic and Pharmaceutical Administration Department, Hanoi University of Pharmacy, 13-15 Le Thanh Tong St., Hanoi, Vietnam School of Public Health and Community Medicine, University of New South Wales, High St, Kensington NSW 2052, Australia and Pharmaceutical Consultant, Adelaide Parade, Woollahra, NSW 2025, Australia.
authors.forename: Geoffrey
authors.initials: G
authors.lastname: Brooks
authors.affiliation: Quality Use of Medicines and Pharmacy Research Centre, School of Pharmacy and Medical Sciences, University of South Australia, Adelaide, SA 5000, Australia Pharmacoeconomic and Pharmaceutical Administration Department, Hanoi University of Pharmacy, 13-15 Le Thanh Tong St., Hanoi, Vietnam School of Public Health and Community Medicine, University of New South Wales, High St, Kensington NSW 2052, Australia and Pharmaceutical Consultant, Adelaide Parade, Woollahra, NSW 2025, Australia.
authors.forename: Andrea
authors.initials: A
authors.lastname: Mant
mesh_terms: D003906:Developing Countries; D016527:Drug Costs; D006291:Health Policy; D006801:Humans
keywords: Pharmaceutical pricing; developing countries; pharmaceutical expenditure; pharmaceutical purchasing; value-based pricing