Czech reforms will cut drug spending

pharmafile | January 13, 2011 | News story | Sales and Marketing Czech Republic, Drug pricing, drug funding, drug spending, global pricing, healthcare reforms, medicines pricing 

The Czech Republic has announced a major healthcare reform plan, including plans to restrict access to high cost new medicines.

Health minister Leos Heger has unveiled the comprehensive reform plan in response to protests from the country’s doctors, who are threatening to emigrate en masse if they do not receive a substantial increase in their salaries.            

Doctors are arguing that the government should divert spending from expensive equipment and medicines and increase their salaries instead.

A typical doctor’s salary in the Czech Republic is currently around £750, (€880) per month, well below the national average salary, and less than a mechanic or waiter.

The reform proposals include the concept of ‘standard’ and ‘above-standard’ care, which would entail patients paying more for the most expensive, and arguably the best, care; it is implied that this will also involve medicines, in due course.

The plans to restrict the introduction of and access to new medicines will require new legislation, however, with parliament likely to present obstacles to the package.

The government aims to speed the introduction of generics onto the market, and at the same time aims to cut generics prices.

Heger says the central elements are the definition of patient eligibility and the creation of reimbursement standards, as well as greater controls on the introduction of new healthcare technologies, and a redefinition of the powers and duties of health insurance funds.

Andrew McConaghie

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