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.
Such a system ensures a streamlined cost of healthcare. Disparities in charges often exist where there is no control. For example, the same drug might be sold by a big margin between two different regions in the same country. With this system, however, the price of a drug is guaranteed to be the same whether you are in Eastern or western China.
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.
Companies no longer have monopoly over prices. While drug manufacturers still hold a considerable grip on the price rod, they are no longer lone rangers in the game. There are deep consultations and clear guidelines on prices. Hence, they should already know how much a particular drug is likely to cost even before it is released to the market.
Treatment benefits to patients are enhanced. When prices are set, patients can get treatment, knowing very well the costs they will incur. However, it is important to note that not all medicines are placed under the IRP. Only certain types or classes of drugs are referenced. These are mainly drugs that are of significance to each country.
Without referencing, it would be difficult to determine the prices of medicines. There are several other methods that can be applied, but they are too expensive. IRP is a system that still makes sure that while the manufacturer can make profits, the patient can also afford the medicines. Here, everyone wins.
This is a relatively simple method. For the implementation of this system, countries only need little information such as the costs of the same medicines in other countries. The countries used for referencing are normally those that share similar economic environments or geographic similarities. It is assumed that referencing countries have fairer and competitive prices.
The system is easy to implement. The most important tool in the implementation of this system is communication. Once the relevant IR policies have been developed, they only need to be communicated to the drug manufacturers and other stakeholders for implementation to begin. This is not only easy, but also cheap.
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.
Such a system ensures a streamlined cost of healthcare. Disparities in charges often exist where there is no control. For example, the same drug might be sold by a big margin between two different regions in the same country. With this system, however, the price of a drug is guaranteed to be the same whether you are in Eastern or western China.
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.
Companies no longer have monopoly over prices. While drug manufacturers still hold a considerable grip on the price rod, they are no longer lone rangers in the game. There are deep consultations and clear guidelines on prices. Hence, they should already know how much a particular drug is likely to cost even before it is released to the market.
Treatment benefits to patients are enhanced. When prices are set, patients can get treatment, knowing very well the costs they will incur. However, it is important to note that not all medicines are placed under the IRP. Only certain types or classes of drugs are referenced. These are mainly drugs that are of significance to each country.
Without referencing, it would be difficult to determine the prices of medicines. There are several other methods that can be applied, but they are too expensive. IRP is a system that still makes sure that while the manufacturer can make profits, the patient can also afford the medicines. Here, everyone wins.
This is a relatively simple method. For the implementation of this system, countries only need little information such as the costs of the same medicines in other countries. The countries used for referencing are normally those that share similar economic environments or geographic similarities. It is assumed that referencing countries have fairer and competitive prices.
The system is easy to implement. The most important tool in the implementation of this system is communication. Once the relevant IR policies have been developed, they only need to be communicated to the drug manufacturers and other stakeholders for implementation to begin. This is not only easy, but also cheap.
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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