The ever-escalating cost of healthcare has made it difficult for most people to access health care services. Governments are, therefore forced to step in and control prices to ensure universal access. Various strategies can be used to determine the cost of medicines, and IRP is an emerging system in this sector. When it comes to International Reference Pricing China and Japan stand to gain a lot due to their economic and geographic similarities. For more details on how these two countries can benefit from this system, read on.
There is a streamlined cost of medicines. Before, the same drug could go for different prices within the same country. These differences could be quite big percentages. IRP has eliminated such disparities in market discrimination. Now, the cost of drugs is not only across the country, but also across the region.
There is greater market access. Streamlining of prices not only removes disparities, but also increases the range of reach of drugs. Japan and China can trade the same drug across their borders at relatively the same cost. Hence, companies can focus on producing high-quality medicines rather than just competing for markets.
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.
Patients experience greater benefits. When the prices are clearly known, it is not only access to health care that is increased, but also quality. It has been evidence that there is increased quality in care among the drugs under the IRP system. This can be attributed to the fact that many people can now afford these medicines and get the treatment they need.
Referencing is critical in reducing the prices of medicines. There are many ways in which governments can regulate the costs of medicines. However, IRP is found to be the most suitable because it considers several issues to ensure that while patients benefit, the manufactures also do not lose.
This method is simple. IRP relies on the pricing in regional and similar economic markets. This simply means that a country like China can use the data on prices of a particular drug in Japan to determine its local prices.
Implementation of the system is fairly easy. Some systems, such as the economic evaluation require a lot of technical analysis for values to be attained and for implementation to be successful. With IRP, on the other hand, implementation can be done even with little resources. All that is required is to pass the information to policy-makers and regulators.
This system is slowly gaining ground across the globe. Countries such as China and Japan, which have implemented it can have something to teach others. So far, evidence suggests that it is successful and appropriate, particularly in capitalistic markets.
There is a streamlined cost of medicines. Before, the same drug could go for different prices within the same country. These differences could be quite big percentages. IRP has eliminated such disparities in market discrimination. Now, the cost of drugs is not only across the country, but also across the region.
There is greater market access. Streamlining of prices not only removes disparities, but also increases the range of reach of drugs. Japan and China can trade the same drug across their borders at relatively the same cost. Hence, companies can focus on producing high-quality medicines rather than just competing for markets.
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.
Patients experience greater benefits. When the prices are clearly known, it is not only access to health care that is increased, but also quality. It has been evidence that there is increased quality in care among the drugs under the IRP system. This can be attributed to the fact that many people can now afford these medicines and get the treatment they need.
Referencing is critical in reducing the prices of medicines. There are many ways in which governments can regulate the costs of medicines. However, IRP is found to be the most suitable because it considers several issues to ensure that while patients benefit, the manufactures also do not lose.
This method is simple. IRP relies on the pricing in regional and similar economic markets. This simply means that a country like China can use the data on prices of a particular drug in Japan to determine its local prices.
Implementation of the system is fairly easy. Some systems, such as the economic evaluation require a lot of technical analysis for values to be attained and for implementation to be successful. With IRP, on the other hand, implementation can be done even with little resources. All that is required is to pass the information to policy-makers and regulators.
This system is slowly gaining ground across the globe. Countries such as China and Japan, which have implemented it can have something to teach others. So far, evidence suggests that it is successful and appropriate, particularly in capitalistic markets.
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