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.
This system facilitates market access. IRP policies increase the interconnection of markets. The Asian market is huge, and countries stand to benefit from trading across borders. When prices are aligned, it ensures that the same products can be sold across the border at almost the same costs. This not only widens the market, but also allows countries to specialize in different areas of production.
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.
Treatment benefits to patients are enhanced. When prices are set, patients can get treatment, knowing very well the costs they will incur. However, it is important to note that not all medicines are placed under the IRP. Only certain types or classes of drugs are referenced. These are mainly drugs that are of significance to each country.
The prices for medicines have been reduced greatly. In any system where there is control on pricing, finding a method that benefits everyone is never easy. However, the IRP ensures that drug manufacturers get their work's worth, and patients get value for their money. This has greatly curtailed the prices.
This method is simple. IRP relies on the pricing in regional and similar economic markets. This simply means that a country like China can use the data on prices of a particular drug in Japan to determine its local prices.
Implementation of the system is fairly easy. Some systems, such as the economic evaluation require a lot of technical analysis for values to be attained and for implementation to be successful. With IRP, on the other hand, implementation can be done even with little resources. All that is required is to pass the information to policy-makers and regulators.
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.
This system facilitates market access. IRP policies increase the interconnection of markets. The Asian market is huge, and countries stand to benefit from trading across borders. When prices are aligned, it ensures that the same products can be sold across the border at almost the same costs. This not only widens the market, but also allows countries to specialize in different areas of production.
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.
Treatment benefits to patients are enhanced. When prices are set, patients can get treatment, knowing very well the costs they will incur. However, it is important to note that not all medicines are placed under the IRP. Only certain types or classes of drugs are referenced. These are mainly drugs that are of significance to each country.
The prices for medicines have been reduced greatly. In any system where there is control on pricing, finding a method that benefits everyone is never easy. However, the IRP ensures that drug manufacturers get their work's worth, and patients get value for their money. This has greatly curtailed the prices.
This method is simple. IRP relies on the pricing in regional and similar economic markets. This simply means that a country like China can use the data on prices of a particular drug in Japan to determine its local prices.
Implementation of the system is fairly easy. Some systems, such as the economic evaluation require a lot of technical analysis for values to be attained and for implementation to be successful. With IRP, on the other hand, implementation can be done even with little resources. All that is required is to pass the information to policy-makers and regulators.
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.
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