|Home | About | Journals | Submit | Contact Us | Français|
Pursuing value for money in medicines funding is neither tough nor new.1
PHARMAC (New Zealand's funder) has focused strongly on it for 14 years. We are mindful of funding trade-offs through explicit use of a fixed budget—a desirable and powerful incentive to ensure that value for money remains paramount.2
PHARMAC has used the tools referred to by Jack for several years, including reference pricing, tendering, rebates, and risk sharing arrangements.3 4 Built around a strong core of independent clinical5 and economic assessment, the strategies have successfully improved value for money, freeing up resources for funding of other medicines or health services.
The idea of an individual refund for ineffective treatments is interesting, but one PHARMAC hasn't implemented because of definitional and monitoring concerns. The mechanism is an attempt to deal with a fundamental mismatch between pricing and value (health outcomes) to populations—an issue that can generally be more cost effectively managed in other ways.
Competing interests: None declared.