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Exploring the impact of clawback on pharmaceutical expenditure: A case study of public hospitals in Greece

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  • Apostolos N. Letsios
  • George Mavridoglou
  • Domniki Ladopoulou
  • Despoina Tsourdini
  • Nikolaos Dedes
  • Nikolaos M. Polyzos

Abstract

Several European administrations have applied various mechanisms promoting cost containment to stabilise their budgets for pharmaceutical expenditure. Since 2016, Greece has adopted the clawback as a policy to contain the NHS hospitals' pharmaceutical expenditure, which increased significantly in the 2016–2020 period. The present study reviews the impact of this policy on the operation of NHS hospitals, the uninterrupted supply and rational use of their medicines, along with the sustainability of their finances. The trend of pharmaceutical expenditure for the period 2016–2020 is combined with further analysis of detailed drug consumption data of 15 sampled NHS hospitals. The data is classified by Anatomical Therapeutic Category (ATC) and the percentage of clawback distributed to each ATC and pharmaceutical company is calculated. It was found that a large proportion of the clawback is allocated to a few therapeutic categories (ATCs) and consequently, few pharmaceutical companies are particularly burdened. The increased burden on pharmaceutical companies, due to the continuous increase in the excessive pharmaceutical expenditure of the NHS hospitals and their limited budget, endangers the uninterrupted supply of medicines to hospitals and the viability of pharmaceutical companies. This issue was discussed in a scientific consensus group*, in which participants proposed ways to keep the level of pharmaceutical expenditure in line with patients' needs, the country's economic potential, and the sustainability of pharmaceutical companies.

Suggested Citation

  • Apostolos N. Letsios & George Mavridoglou & Domniki Ladopoulou & Despoina Tsourdini & Nikolaos Dedes & Nikolaos M. Polyzos, 2023. "Exploring the impact of clawback on pharmaceutical expenditure: A case study of public hospitals in Greece," International Journal of Health Planning and Management, Wiley Blackwell, vol. 38(5), pages 1539-1554, September.
    • Handle: RePEc:bla:ijhplm:v:38:y:2023:i:5:p:1539-1554
    DOI: 10.1002/hpm.3679
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    References listed on IDEAS

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    1. Lambrelli, Dimitra & O'Donnell, Owen, 2011. "The impotence of price controls: Failed attempts to constrain pharmaceutical expenditures in Greece," Health Policy, Elsevier, vol. 101(2), pages 162-171, July.
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