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.
Such a system ensures a streamlined cost of healthcare. Disparities in charges often exist where there is no control. For example, the same drug might be sold by a big margin between two different regions in the same country. With this system, however, the price of a drug is guaranteed to be the same whether you are in Eastern or western China.
There is increased market access. The system indicates clearly the amount the patient is allowed to pay. Any excesses are handled by the government or insurance agents, depending on the country's policies. This encourages people to seek medical services as they are certain that they will not be left penniless by the time they come back from the hospital.
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.
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.
The system is easy to implement. The most important tool in the implementation of this system is communication. Once the relevant IR policies have been developed, they only need to be communicated to the drug manufacturers and other stakeholders for implementation to begin. This is not only easy, but also cheap.
Over the years, the IRP has gained increased usage. It is mostly used in Asia but is also dominant in Europe. The United States is also considering its adoption. As this growth is witnessed across the globe, there is a lot that other countries can learn from China and Japan.
Such a system ensures a streamlined cost of healthcare. Disparities in charges often exist where there is no control. For example, the same drug might be sold by a big margin between two different regions in the same country. With this system, however, the price of a drug is guaranteed to be the same whether you are in Eastern or western China.
There is increased market access. The system indicates clearly the amount the patient is allowed to pay. Any excesses are handled by the government or insurance agents, depending on the country's policies. This encourages people to seek medical services as they are certain that they will not be left penniless by the time they come back from the hospital.
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.
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.
The system is easy to implement. The most important tool in the implementation of this system is communication. Once the relevant IR policies have been developed, they only need to be communicated to the drug manufacturers and other stakeholders for implementation to begin. This is not only easy, but also cheap.
Over the years, the IRP has gained increased usage. It is mostly used in Asia but is also dominant in Europe. The United States is also considering its adoption. As this growth is witnessed across the globe, there is a lot that other countries can learn from China and Japan.
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