International Experience With Pharmaceutical Policy: Common Challenges and Lessons for Canada

Donald Willison (), Mary Wiktorowicz, Paul Grootendorst, Bernie O'Brien, Mitchell Levine, Raisa Deber and Jeremiah Hurley
Additional contact information
Donald Willison: Department of Clinical Epidemiology & Biostatistics, McMaster University, Centre for Evaluation of Medicines
Mary Wiktorowicz: Department of Clinical Epidemiology & Biostatistics, and Political Science, University of Western Ontario
Bernie O'Brien: Department of Clinical Epidemiology & Biostatistics, McMaster University, Centre for Evaluation of Medicines
Mitchell Levine: Department of Clinical Epidemiology & Biostatistics, McMaster University, Centre for Evaluation of Medicines
Raisa Deber: Department of Health Administration, University of Toronto

No 2001-08, Centre for Health Economics and Policy Analysis Working Paper Series from Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada

Abstract: Pharmaceuticals are the focus of increased scrutiny by public insurers. Between 1985 and 1998, drug expenditure in Canada increased by 226% - approximately double the increase in total expenditure on health. Prescribed and non-prescribed drugs now comprise the second-largest share of health care expenditures after hospitals, surpassing physicians’ services. The National Forum on Health called for common strategies across the provinces, to manage pharmaceuticals from a health policy perspective. At the same time, the federal government and several provinces are interested in promoting pharmaceutical research and development (R&D), as part of the advancement of a knowledge-based economy. In the past, debates about pharmaceutical policy centred on the balancing of cost-containment and access to needed pharmaceuticals. The creation of an environment more conducive to attracting pharmaceutical R&D introduces additional tensions that will, no doubt, require concessions in current policies to manage pharmaceutical expenditures. In addition, a significant R&D investment will have predictable “downstream” effects on other sectors, such as academic research. In this study, we describe the experience of 7 Western industrialized countries in controlling pharmaceutical budgets while maintaining access to medically necessary prescription medications. In addition, we describe the potential impact of these policies on pharmaceutical R&D and the efforts of these countries to create a favourable climate for fostering R&D within their borders. We identify tensions that arise between health policy and industrial policy goals, and broad questions of directions and choices.

Pages: 66 pages
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.chepa.org/Files/Working%20Papers/01-08.pdf First version, 2001 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hpa:wpaper:200108

Access Statistics for this paper

More papers in Centre for Health Economics and Policy Analysis Working Paper Series from Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada Contact information at EDIRC.
Bibliographic data for series maintained by Lyn Sauberli ( this e-mail address is bad, please contact ).