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

Manuel Martínez-Blanes, Francisco Javier Rondán-Cataluña and José Manuel Velarde-Gestera
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Manuel Martínez-Blanes: Departamento de Economía, Métodos Cuantitativos e Historia Económica, Universidad Pablo de Olavide, Ctra. Utrera (A-376) km 1, 41013 Seville, Spain
Francisco Javier Rondán-Cataluña: Dpto. Administración de Empresas y Marketing, Universidad de Sevilla, Ramon y Cajal, 1, 41018 Seville, Spain
José Manuel Velarde-Gestera: Drimay Consultores, Alberche 4A -1º, 41005 Seville, Spain

Administrative Sciences, 2020, vol. 10, issue 2, 1-19

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.

Keywords: pharmaceutical management; efficiency; health organizations; synthetic indicator (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2020
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