IDEAS home Printed from https://ideas.repec.org/a/spr/pharme/v35y2017i10d10.1007_s40273-017-0536-y.html
   My bibliography  Save this article

Availability and Pricing New Medicines in Ireland: Reflections and Reform

Author

Listed:
  • Paul K. Gorecki

    (Trinity College Dublin
    Economic and Social Research Institute)

Abstract

This paper argues that the current method of determining the availability and pricing of new medicines for public reimbursement in Ireland likely results in too large a share of public healthcare expenditure allocated to medicines. Resources are misallocated. Welfare is lowered. In contrast to some other areas of public healthcare, patients exercise ‘voice’ rather than ‘exit’ concerning the public provision of high-cost new medicines. Setting publicly agreed cost-effectiveness thresholds, with clear predictable criteria for when the cost-effectiveness thresholds can be exceeded, would contribute to the creation of a more appropriate new medicine decision-making framework. It would incentivise suppliers to set prices consistent with the decision-making framework. Guidance and clarity raises the possibility of shielding the Health Service Executive, the decision maker, at least partially, from the pressure to fund expensive new medicines that lack cost-effectiveness, while at the same time increasing transparency and predictability.

Suggested Citation

  • Paul K. Gorecki, 2017. "Availability and Pricing New Medicines in Ireland: Reflections and Reform," PharmacoEconomics, Springer, vol. 35(10), pages 981-987, October.
    • Handle: RePEc:spr:pharme:v:35:y:2017:i:10:d:10.1007_s40273-017-0536-y
    DOI: 10.1007/s40273-017-0536-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40273-017-0536-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40273-017-0536-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Laura McCullagh & Michael Barry, 2016. "The Pharmacoeconomic Evaluation Process in Ireland," PharmacoEconomics, Springer, vol. 34(12), pages 1267-1276, December.
    2. Gorecki, Paul K. & Nolan, Anne & Brick, Aoife & Lyons, Seán, 2012. "Pharmaceuticals Delivery in Ireland. Getting a Bigger Bang for the Buck," Research Series, Economic and Social Research Institute (ESRI), number RS24.
    3. Brick, Aoife & Gorecki, Paul K. & Nolan, Anne, 2013. "Ireland: Pharmaceutical Prices, Prescribing Practices and Usage of Generics in a Comparative Context," Research Series, Economic and Social Research Institute (ESRI), number RS32.
    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. A. ConwayLenihan & S. Ahern & S. Moore & J. Cronin & N. Woods, 2016. "Factors influencing the variation in GMS prescribing expenditure in Ireland," Health Economics Review, Springer, vol. 6(1), pages 1-8, December.
    2. Dunne, Suzanne & Shannon, Bill & Hannigan, Ailish & Dunne, Colum & Cullen, Walter, 2014. "Physician and pharmacist perceptions of generic medicines: What they think and how they differ," Health Policy, Elsevier, vol. 116(2), pages 214-223.
    3. Han, Euna & Chae, Su-Mi & Kim, Nam-Soon & Park, Sylvia, 2015. "Effects of pharmaceutical cost containment policies on doctors’ prescribing behavior: Focus on antibiotics," Health Policy, Elsevier, vol. 119(9), pages 1245-1254.
    4. Martin Kenneally & Brenda Lynch, 2018. "Ageing, health status and coverage rate effects on community prescription costs in Ireland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(5), pages 687-695, June.
    5. Gorecki, Paul, 2017. "The savings from the 2016-2020 Framework Agreement on the Supply and Pricing of Medicines in Ireland: which counterfactual?," MPRA Paper 79481, University Library of Munich, Germany.
    6. Laura McCullagh & Susanne Schmitz & Michael Barry & Cathal Walsh, 2017. "Examining the Feasibility and Utility of Estimating Partial Expected Value of Perfect Information (via a Nonparametric Approach) as Part of the Reimbursement Decision-Making Process in Ireland: Applic," PharmacoEconomics, Springer, vol. 35(11), pages 1177-1185, November.
    7. Duffy, David & Durkan, Joe & O'Sullivan, Cormac, 2012. "Quarterly Economic Commentary, Winter 2011/Spring 2012," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20121, march.
    8. James F. O’Mahony & Diarmuid Coughlan, 2016. "The Irish Cost-Effectiveness Threshold: Does it Support Rational Rationing or Might it Lead to Unintended Harm to Ireland’s Health System?," PharmacoEconomics, Springer, vol. 34(1), pages 5-11, January.
    9. James O’Mahony & Diarmuid Coughlan, 2016. "The Irish Cost-Effectiveness Threshold: Does it Support Rational Rationing or Might it Lead to Unintended Harm to Ireland’s Health System?," PharmacoEconomics, Springer, vol. 34(1), pages 5-11, January.
    10. Suaad Almajed & Nora Alotaibi & Sana Zulfiqar & Zahraa Dhuhaibawi & Niall O’Rourke & Richard Gaule & Caoimhe Byrne & Aaron M. Barry & Dylan Keeley & James F. O’Mahony, 2022. "Cost-effectiveness evidence on approved cancer drugs in Ireland: the limits of data availability and implications for public accountability," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(3), pages 375-431, April.
    11. Foad Iravani & Hamed Mamani & Emisa Nategh, 2020. "External Reference Pricing and Parallel Imports of Pharmaceuticals: A Policy Comparison," Production and Operations Management, Production and Operations Management Society, vol. 29(12), pages 2716-2735, December.
    12. Duffy, David & Durkan, Joe & Casey, Eddie, 2012. "Quarterly Economic Commentary, Summer 2012," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20122, march.
    13. Aoife Brick & Anne Nolan & Jacqueline O’Reilly & Samantha Smith, 2012. "Conflicting Financial Incentives in the Irish Health-Care System," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 273-301.
    14. Layte, Richard & Nolan, Anne, 2013. "Income-Related Inequity in the Use of GP Services: A Comparison of Ireland and Scotland," Papers WP454, Economic and Social Research Institute (ESRI).
    15. Felicity Lamrock & Laura McCullagh & Lesley Tilson & Michael Barry, 2020. "A retrospective analysis of budget impact models submitted to the National Centre for Pharmacoeconomics in Ireland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(6), pages 895-901, August.
    16. Richard Layte & Anne Nolan, 2015. "Income-related inequity in the use of GP services by children: a comparison of Ireland and Scotland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(5), pages 489-506, June.
    17. James F. O’Mahony, 2021. "Revision of Ireland’s Cost-Effectiveness Threshold: New State-Industry Drug Pricing Deal Should Adequately Reflect Opportunity Costs," PharmacoEconomics - Open, Springer, vol. 5(3), pages 339-348, September.

    More about this item

    Statistics

    Access and download statistics

    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:spr:pharme:v:35:y:2017:i:10:d:10.1007_s40273-017-0536-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.