IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v10y2020i2p31-d360058.html
   My bibliography  Save this article

Indicators of Efficiency in the Pharmaceutical Management of a Public Health System

Author

Listed:
  • Manuel Martínez-Blanes

    (Departamento de Economía, Métodos Cuantitativos e Historia Económica, Universidad Pablo de Olavide, Ctra. Utrera (A-376) km 1, 41013 Seville, Spain
    These authors contributed equally to this work.)

  • Francisco Javier Rondán-Cataluña

    (Dpto. Administración de Empresas y Marketing, Universidad de Sevilla, Ramon y Cajal, 1, 41018 Seville, Spain
    These authors contributed equally to this work.)

  • José Manuel Velarde-Gestera

    (Drimay Consultores, Alberche 4A -1º, 41005 Seville, Spain
    These authors contributed equally to this work.)

Abstract

This practical research arises from a growing interest in offering models that provide a measure of the efficiency of pharmaceutical management in the Public Health System, beyond spending per inhabitant or other similar indices that do not incorporate the effects of the environment. The main objective of the paper is to design a tool that can measure the relative efficiency of health systems, with respect to the rational use of medicament based on its regional socioeconomic context. The first step was to check if it is possible to apply the efficiency and productivity analysis models, widely used in the economy and companies. We have carefully chosen the context factors that are pertinent and influential in the final index: demographic, sanitary, economic, and social. After selecting and ordering the context variables of the different regions of Spain, they are normalized using the index number transformation or ‘distance’ to a reference. The weighted sum method is used to build the synthetic indicators. The main contribution of this paper is to propose a relative efficiency indicator that assumes the context of performance and allows a comparison between health organizations. The methodology offered in this manuscript could assist policymakers to make better decisions in order to enhance the productivity of the public pharmaceutical system, and it makes available feedback about past decisions.

Suggested Citation

  • Manuel Martínez-Blanes & Francisco Javier Rondán-Cataluña & José Manuel Velarde-Gestera, 2020. "Indicators of Efficiency in the Pharmaceutical Management of a Public Health System," Administrative Sciences, MDPI, vol. 10(2), pages 1-19, May.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:2:p:31-:d:360058
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/10/2/31/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/10/2/31/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christine de la Maisonneuve & Rodrigo Moreno-Serra & Fabrice Murtin & Joaquim Oliveira Martins, 2016. "The drivers of public health spending: Integrating policies and institutions," OECD Economics Department Working Papers 1283, OECD Publishing.
    2. Annalisa Belloni & David Morgan & Valérie Paris, 2016. "Pharmaceutical Expenditure And Policies: Past Trends And Future Challenges," OECD Health Working Papers 87, OECD Publishing.
    3. António Afonso & Mina Kazemi, 2017. "Assessing Public Spending Efficiency in 20 OECD Countries," Dynamic Modeling and Econometrics in Economics and Finance, in: Bettina Bökemeier & Alfred Greiner (ed.), Inequality and Finance in Macrodynamics, pages 7-42, Springer.
    4. Heckley, Gawain & Gerdtham, Ulf-G. & Kjellsson, Gustav, 2016. "A general method for decomposing the causes of socioeconomic inequality in health," Journal of Health Economics, Elsevier, vol. 48(C), pages 89-106.
    5. Mariateresa Torchia & Andrea Calabrò & Michèle Morner, 2015. "Public-Private Partnerships in the Health Care Sector: A systematic review of the literature," Public Management Review, Taylor & Francis Journals, vol. 17(2), pages 236-261, February.
    6. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, September.
    7. Giuseppe Moscelli & Luigi Siciliani & Nils Gutacker & Richard Cookson, 2015. "Socioeconomic Inequality of Access to Healthcare: Does Patients' Choice Explain the Gradient? Evidence from the English NHS," Working Papers 112cherp, Centre for Health Economics, University of York.
    8. Matteo Mazziotta, Adriano Pareto, 2013. "Methods For Constructing Composite Indices: One For All Or All For One?," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 67(2), pages 67-80, April-Jun.
    9. David J Hunt & Charles R. Link, 2020. "Better outcomes at lower costs? The effect of public health expenditures on hospital efficiency," Applied Economics, Taylor & Francis Journals, vol. 52(4), pages 400-414, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pessino, Carola & Izquierdo, Alejandro & Vuletin, Guillermo, 2018. "Better Spending for Better Lives: How Latin America and the Caribbean Can Do More with Less," IDB Publications (Books), Inter-American Development Bank, number 9152.
    2. Eric French & Elaine Kelly & Richard Cookson & Carol Propper & Miqdad Asaria & Rosalind Raine, 2016. "Socio‐Economic Inequalities in Health Care in England," Fiscal Studies, Institute for Fiscal Studies, vol. 37, pages 371-403, September.
    3. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    4. Helmi Hammami & Thanh Ngo & David Tripe & Dinh-Tri Vo, 2022. "Ranking with a Euclidean common set of weights in data envelopment analysis: with application to the Eurozone banking sector," Annals of Operations Research, Springer, vol. 311(2), pages 675-694, April.
    5. Norman Gemmell & Patrick Nolan & Grant Scobie, 2017. "Public sector productivity: Quality adjusting sector-level data on New Zealand schools," Working Papers 2017/02, New Zealand Productivity Commission.
    6. Simona Alfiero & Laura Broccardo & Massimo Cane & Alfredo Esposito, 2018. "High Performance Through Innovation Process Management in SMEs. Evidence from the Italian wine sector," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(3), pages 87-110.
    7. Roselinde Kessels & Guido Erreygers, 2016. "Structural equation modeling for decomposing rank-dependent indicators of socioeconomic inequality of health: an empirical study," Health Economics Review, Springer, vol. 6(1), pages 1-13, December.
    8. Fethi, Meryem Duygun & Pasiouras, Fotios, 2010. "Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey," European Journal of Operational Research, Elsevier, vol. 204(2), pages 189-198, July.
    9. Sabrina Auci & Laura Castellucci & Manuela Coromaldi, 2021. "How does public spending affect technical efficiency? Some evidence from 15 European countries," Bulletin of Economic Research, Wiley Blackwell, vol. 73(1), pages 108-130, January.
    10. Barbara Langlois & Vincent Martinet, 2023. "Defining cost-effective ways to improve ecosystem services provision in agroecosystems," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(2), pages 123-165, June.
    11. Scheierling, Susanne M. & Treguer, David O. & Booker, James F. & Decker, Elisabeth, 2014. "How to assess agricultural water productivity ? looking for water in the agricultural productivity and efficiency literature," Policy Research Working Paper Series 6982, The World Bank.
    12. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    13. Krzysztof Opolski & Piotr Modzelewski, 2009. "Quality and efficiency in the local government-methodological approach," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 22.
    14. Nguyen, Bao Hoang & Simar, Léopold & Zelenyuk, Valentin, 2022. "Data sharpening for improving central limit theorem approximations for data envelopment analysis–type efficiency estimators," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1469-1480.
    15. Tero Kuusi, 2015. "The dynamics of ICT adaptation and the productivity gaps across advanced nations," Journal of Productivity Analysis, Springer, vol. 44(2), pages 175-188, October.
    16. Simon Pol & Paula Rojas Garcia & Fernando Antoñanzas Villar & Maarten J. Postma & Antoinette D. I. Asselt, 2021. "Health-Economic Analyses of Diagnostics: Guidance on Design and Reporting," PharmacoEconomics, Springer, vol. 39(12), pages 1355-1363, December.
    17. Mocholi-Arce, Manuel & Sala-Garrido, Ramon & Molinos-Senante, Maria & Maziotis, Alexandros, 2023. "Profit productivity change in the English and Welsh water sector: Impact of the price reviews," Utilities Policy, Elsevier, vol. 82(C).
    18. Karmann, Alexander & Sugawara, Shinya, 2022. "Comparing the German and Japanese nursing home sectors: Implications of demographic and policy differences," CEPIE Working Papers 02/22, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    19. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2023. "Public support for performing arts. Efficiency and productivity gains in eleven European countries," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    20. Yujian Jin & Lihong Yu & Yan Wang, 2022. "Green Total Factor Productivity and Its Saving Effect on the Green Factor in China’s Strategic Minerals Industry from 1998–2017," IJERPH, MDPI, vol. 19(22), pages 1-20, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:10:y:2020:i:2:p:31-:d:360058. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.