Governments that opt for prescription drug bulk purchasing agreements can save taxpayers money, but doing so may put patient health at risk, according to a report.
“In virtually all cases, bulk purchase agreements provide savings to drug plan sponsors, but choice and flexibility are often sacrificed,” says Dr. Kristina Lybecker, a senior fellow at the Fraser Institute and author of the report The Bulk Purchase of Pharmaceuticals.
The report examines bulk pharmaceutical purchase agreements in the United States, New Zealand and Europe.
These agreements can force patients to pay out of pocket for the medicines they need and delay the introduction of new, innovative treatments.
“This has the potential to harm patients and create additional expenditures on non-pharmaceutical forms of care,” she explains. “Indeed, the New Zealand experience clearly demonstrates poorer health outcomes, reduced innovation and a possible lack of savings overall as costs are shifted to other areas of healthcare.”
While bulk purchasing plans for prescription drugs can save money, the report concludes that governments must be cautious that potential savings aren’t offset by higher non-pharmaceutical health costs and poorer health outcomes.
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