Drug Pricing

Author: 
Gray, Andy
Other Authors: 
Matsebula, Thulani
Publication Year: 
2000
Issue: 
2000 Brief
City: 
Durban
Country: 
South Africa
Published by: 
Health Systems Trust

Introduction

Pursuing equity as a policy goal implies improving access to quality health care. Access may be constrained by many factors, both geographic and economic. Economic factors are usually related to the costs of services. Out-of-pocket expenditure 1 on drugs is high in many countries, and has been quoted at:

65% of total drug expenditure in sub-Saharan Africa
81% in Asia and
Less than 40% in established market economies.

Generally:

The rise in drug expenditure over time exceeds that for other health expenditures
Drug prices influence access. For, example, The Panos Institute, says that the main reason why anti-retrovirals are not widely available in the developing world is the price of the drugs.
The cost of drugs is one of the factors that determines the drugs inclusion in the Essential Drugs Lists.
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