Pharmaceutical Industry Funding Challenges. Val Beaumont July 07. True Cost Reflection Of Medicines As A Component Of Healthcare Expenditure. Total Meds Incl. Disp Fee. R bn. Total Meds Excl Disp. Fee. CMS Annual Report 2000-6 Disp Fee 2000-2003 = +50%-30% Disp Fee 2004-2005 = Max 26%.
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Incl. Disp Fee
Excl Disp. Fee
CMS Annual Report 2000-6
Disp Fee 2000-2003 = +50%-30%
Disp Fee 2004-2005 =
Medicine Expenditure Trend Declining Back To 1990’s Levels
R 16 bn.
Drug Utilization Review/Clinical Entry Criteria
SA Spend On Medicines In Line With International Benchmarks
& OECD Benchmarks
Medicines No Long A Cost Driver In Private Sector
Including Dispensing Fees
Sources: OECD Health Report 2006 (Data 2004), *South Africa 2005-6 CMS Annual Report Figure 12, Pg 50 (Includes Dispensing Fees), ** South Africa 2005-6 CMS Annual Report Pg 88,89,90 Annexure I, Pg 99 Annexure K (Includes Dispensing Fees)
SA Spend On Medicines In Line With OECD Benchmarks
If We Include Non Healthcare Expenses In
The Healthcare Pie For 2005
**( 2005-6 CMS = 15.70%)
CMS Annual Report 2005-6
Non Healthcare Costs Consume More Than Medcines
139 Medical Schemes
Each With Different
Benefits & Rules
Chronic Application Forms
Do These Member Access Barriers Lead To Healthier Members?
Does Competing On Cost Alone Lead To Healthier Members?
Can We All Do A Better Job In Ensuring Members Are Experiencing Value
from Our Products And Services?
Driver In SA Market
Due To Regulatory And
Managed Care Interventions
With International Benchmarks
Saving Medicines A Complex
Process Which Might Not
Be Incorporating The
True Value Of The Medicine
Been Proven Not To Drive
Total Medicines Costs For
Balancing Cost With Clinical
Value For Members Best Interest
Should Be The Focus Area For