[india-drug] Research paper available: the hidden costs of procuring essential medicines

[Libby Levison <llevison@bu.edu>]

E-drug: Research paper available: the hidden costs of procuring
   essential medicines
---------------------------------------------
 
Dear All,
 
I posted a request for information on retail and wholesale markups on
pharmaceuticals a couple of months ago.  That information was needed
for research I was doing with Dr. Richard Laing into the hidden costs
of
procuring pharmaceuticals -- the costs incurred between the
manufacturer and the patient, for example: tariffs, taxes, shipping,
procurement method, markups, storage, expiry etc.
 
I am writing now to tell you that the paper is finished and available. 
The research found that hidden costs can frequently more than double
the procurement costs of pharmaceuticals and is supported by data from
10 countries.
 
The paper abstract and access information is included below.  For
anyone without Web access, please email me at libby@theplateau.com or
llevison@bu.edu, tell me whether you prefer Word, Zipped Word or PDF, 
and I will send you a copy directly.  For anyone who is inspired to 
send parallel data from their country, I would be happy to collate it
for future reference.
 
An especially large "thank you" to the E-Druggers who contributed their
data and comments and made the research possible.
 
Regards,
 
Libby Levison
 
 
Paper title: Policy and programming options for reducing the
procurement
costs of essential medicines in developing countries.
 
Author: Libby Levison
URL:
http://dcc2.bumc.bu.edu/richardl/IH820/Resource_materials/Web_Resources/Levison-hiddencosts.doc
(Long URL -- you will have to "repair")
 
Abstract: Essential medicines are central to a health system's success
and the care it provides its clients.  An estimated one third of the
world's population lacks access to essential medicines, due in part to
their cost.  While poor infrastructure and distribution systems make
delivery difficult, the cost of essential medicines remains the largest
obstacle to access.  This paper investigates hidden costs inherent in
the procurement process that diminish purchasing power.  Data collected
and presented from ten countries illustrates that hidden costs can
frequently more than double the price of essential medicines between
manufacturer and patient.  Faced with fixed budgets and limited
financial resources available, countries must reduce costs in order to
increase access to essential medicines.
 
This paper identifies nine policy and programming options available to
governments and pharmaceutical procurement offices to lower the costs
of the essential medicines they procure.  When available, these
policies
are supported by evidence from developing countries; when evidence is
lacking, suggestions are made for studies.  Specific actions for public
health officials are also proposed.
 
By reducing hidden costs, countries will increase purchasing power and
provide more essential medicines to a greater portion of their
population.  Once implemented, these policies will also turn the
spotlight on the next barrier to access: the manufacturer's price.
 
 
Libby Levison
MPH candidate, Boston University School of Public Health
llevison@bu.edu
(or libby@theplateau.com)




The INDIA-DRUG discussion group is a partnership between SATELLIFE
(www.healthnet.org), WHO Essential Drugs and Medicines Policy
(www.who.ch), and the Delhi Society for the Promotion of the
Rational Use of Drugs (DSPRUD) in India.

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