Transcript Is drug pricing a problem?

Is drug pricing a
problem?
PHILIP J. SCHNEIDER MS, FASHP, FASPEN, FFIP
PROFESSOR AND ASSOCIATE DEAN
UNIVERSITY OF ARIZONA COLLEGE OF PHARMACY
PHOENIX BIOMEDICAL CAMPUS
Yes!
1.
The business community
2.
The political arena
3.
Payers
4.
Health care professionals
◦ Physicians
◦ AMA
◦ Pharmacists
◦ APhA
◦ ASHP
◦ AMCP
Perspective of a pharmacist
Medication-Use System
1.
Procurement
◦ Integrity of the drug supply
◦ Drug shortages
2.
Prescribing
3.
Transcription
4.
Preparation
5.
Dispensing
6.
Administration
7.
Monitoring
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Balanced Scorecard
Effectiveness
◦ Treatment outcomes (HbA1C, BP, INR, etc.)
Safety
◦ Preventable adverse drug events (falls, bleeds,
hypoglycemia, etc.)
Cost responsibility
◦ Cost/patient/month
◦ Health care utilization (hospital, ED, office visits, etc.)
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The Value Network: Medication-Use
Who can respond together (profitably) to meet the
common needs of customers (patients)?
◦ Needs of patients
◦ Efficacy
◦ Safety
◦ Responsible use of limited resources
◦ The value of medicines
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Availability of medicines
Integrity of the drug supply
Adherence
Pharmacovigilence
◦ The network
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Pharmaceutical industry
Governments/health insurance payers
Employers
Healthcare professions and health care providers
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Conflicting Goals
Pharmaceutical industry
◦ Maximize profits
Ministers of health/health insurance providers
◦ Minimize costs
Employers
◦ Minimize health benefit costs
◦ Optimize employee productivity
Healthcare professionals
◦ Improve health
◦ Effectiveness
◦ Safety
◦ Balancing effectiveness, safety, and cost
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Value Propositions*
Pharmaceutical industry
◦ Drug discovery
Ministers of health/health insurance providers
◦ Regulating and paying for drugs and health services
Employers
◦ Employee productivity/improved “presenteeism”
◦ Managing benefit costs
Healthcare professionals
◦ Providing health services and improving health
◦ Responsible use of medicines
◦ Effective
◦ Safe
◦ Cost-consciousness
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Summary comments
1.
Drug prices are becoming a public policy issue
2.
There are some bad players in the industry that do not understand (or appreciate) social
responsibility
3.
The free market system has resulted in price competition
4.
There is a cost of innovation and the willingness to take risk
5.
Healthcare professionals should be in a good position to optimize the value of medicines
6.
It is not clear that drug prices should be regulated