The cost of healthcare is ever on the rise. As countries struggle to provide universal access to healthcare, more and more people are falling into the bracket of those who cannot access such services. One of the main barriers to universal access to healthcare has been identified as the high cost of medicines. Hence, it is important for governments to ensure that medicines are affordable. One of the ways of doing this is using the IRP. Among the countries that have tried International Reference Pricing China and Japan take the lead because of its realized potential.
There is a streamlined cost of medicines. Before, the same drug could go for different prices within the same country. These differences could be quite big percentages. IRP has eliminated such disparities in market discrimination. Now, the cost of drugs is not only across the country, but also across the region.
There is greater market access. Streamlining of prices not only removes disparities, but also increases the range of reach of drugs. Japan and China can trade the same drug across their borders at relatively the same cost. Hence, companies can focus on producing high-quality medicines rather than just competing for markets.
The control of drug manufacturers on the prices of medicines is eliminated. A capitalistic system, such as what the drug market is, can be cannibalistic. For example, drug manufacturers may escalate process, not because of high production costs but simply because they are dominant and can dictate prices. Such a scenario would play against the government's interest in providing universal access to healthcare.
Patients experience greater benefits. When the prices are clearly known, it is not only access to health care that is increased, but also quality. It has been evidence that there is increased quality in care among the drugs under the IRP system. This can be attributed to the fact that many people can now afford these medicines and get the treatment they need.
Referencing is critical in reducing the prices of medicines. There are many ways in which governments can regulate the costs of medicines. However, IRP is found to be the most suitable because it considers several issues to ensure that while patients benefit, the manufactures also do not lose.
IRP is simple and cheap. Many systems fail at the implementation stage. This is because they are rigorous and require a lot of information to be implemented successfully. However, when countries share similar economic and geographic environments such as China, and Japan do, they can benefit from IRP greatly.
Implementation is cheap. For a system to be implemented with ease, it should be easy to replicate. The International Reference Pricing relies heavily on communication. There is little resource usage after development. The manufacturers and stakeholders in the industry are simply communicated to the polices for them to implement.
This system is slowly gaining ground across the globe. Countries such as China and Japan, which have implemented it can have something to teach others. So far, evidence suggests that it is successful and appropriate, particularly in capitalistic markets.
There is a streamlined cost of medicines. Before, the same drug could go for different prices within the same country. These differences could be quite big percentages. IRP has eliminated such disparities in market discrimination. Now, the cost of drugs is not only across the country, but also across the region.
There is greater market access. Streamlining of prices not only removes disparities, but also increases the range of reach of drugs. Japan and China can trade the same drug across their borders at relatively the same cost. Hence, companies can focus on producing high-quality medicines rather than just competing for markets.
The control of drug manufacturers on the prices of medicines is eliminated. A capitalistic system, such as what the drug market is, can be cannibalistic. For example, drug manufacturers may escalate process, not because of high production costs but simply because they are dominant and can dictate prices. Such a scenario would play against the government's interest in providing universal access to healthcare.
Patients experience greater benefits. When the prices are clearly known, it is not only access to health care that is increased, but also quality. It has been evidence that there is increased quality in care among the drugs under the IRP system. This can be attributed to the fact that many people can now afford these medicines and get the treatment they need.
Referencing is critical in reducing the prices of medicines. There are many ways in which governments can regulate the costs of medicines. However, IRP is found to be the most suitable because it considers several issues to ensure that while patients benefit, the manufactures also do not lose.
IRP is simple and cheap. Many systems fail at the implementation stage. This is because they are rigorous and require a lot of information to be implemented successfully. However, when countries share similar economic and geographic environments such as China, and Japan do, they can benefit from IRP greatly.
Implementation is cheap. For a system to be implemented with ease, it should be easy to replicate. The International Reference Pricing relies heavily on communication. There is little resource usage after development. The manufacturers and stakeholders in the industry are simply communicated to the polices for them to implement.
This system is slowly gaining ground across the globe. Countries such as China and Japan, which have implemented it can have something to teach others. So far, evidence suggests that it is successful and appropriate, particularly in capitalistic markets.
About the Author:
Discover all the essential facts about the international reference pricing China and Japan by reading more about this topic online. Get quick access to our main website at http://www.theauricgroup.com/about.
No comments:
Post a Comment