The pharmaceutical business is often described as one of the the most profitable industries on the planet. And Australian drug I worry about the consumer, says Professor David Jacksonprices are amongst the most expensive in the world.
As Federal Cabinet considers radical plans to bring down the costs of pharmaceuticals, Professor David M Jackson from Charles Sturt University’s (CSU) School of Biomedical Sciences explains why the price of drugs in Australia is too high.
According to Professor Jackson, part of the problem is a lack of competition between pharmacies. Recently, the pharmacy industry fought, and won, a battle with the major supermarkets who wanted to open chemist shops in their stores.
“You can buy small quantities of aspirin in a supermarket, and that’s cheap,” says Professor Jackson. But that’s where the bargains end for the consumer. “What you pay depends on the wholesale price plus the mark-up, which can vary between 40 and 70 per cent.”
At the moment, the pharmaceutical companies can virtually set their own price for a new drug. One example is the relatively recent statins…drugs for controlling cholesterol levels. “The patent life is about 14 years, and they can charge whatever the market will bear until a generic drug comes along. Australia spends one billion a year on statin drugs, that’s phenomenal,” says Professor Jackson, “New Zealand spends just fifty million a year on statins.” How come?
“Because New Zealand has a tender system. It says, we have a certain budget, we do not need six different statins. They tender it out.
“So effectively what New Zealand does is say, well, we haven’t got the money to subsidise these very expensive statins, we’ll subsidise one statin.”
It’s a good system for bringing down the price of pharmaceuticals, but it doesn’t explain the high cost of generic drugs in Australia.
“They cost next to nothing to make, why are they only a bit cheaper than the brand name? The government negotiates the price, and they have to balance the conflicting needs of the pharmaceutical industry, the consumer, the pharmacies.”
If Federal Cabinet adopts the New Zealand model, could there could be a backlash from the powerful pharmaceutical lobby?
“It’s hard to say. In New Zealand, some researchers say it’s harder to get research money. They also say a lot of clinical trials are now no longer done there, but I don’t really believe that. But what has happened is quite a few pharmaceutical companies have closed their doors and moved offshore.
“But I worry about the consumer. I don’t care about the Federal Goverment, I don’t especially care about the drug companies. Australia is going the way of the US, where people in a lower socio-economic group don’t have access to drugs.”
Showing posts with label Sciences. Show all posts
Showing posts with label Sciences. Show all posts
20100704
Flexibility key to health care planning for rural Australia
Accessibility and human rights, instead of rigid funding models, should be the priorities when planning health care services for rural and remote Australia says a leading Charles Sturt University (CSU) academic.
“A model of health-care funding for rural and remote Australia should be developed based on fundamental human rights and access to services rather than ‘bricks and mortar’,” said Professor Patrick Ball.
The Professor of Rural and Remote Pharmacy Patrick Ball studied two communities in Central West NSW between 2006 and 2008 as part of his examination of the provision of health services outside Australia.
“The two communities were similar and only a short distance apart but had very different health care needs due to transport links and proximity to a city,” said Professor Ball.
“We have the evidence to show that what is needed by rural and remote areas is more flexibility in allowing individual communities to meet their health needs and more emphasis on access to services rather than what hospital and which health facilities are located where.
“The expenditure of the health dollar has been centrally controlled and based on a mix of what a community has traditionally had and what the community has secured through pressure and lobbying.
“No community can have everything; therefore there is a need for flexibility in the future, including the sharing of health services between big and small communities and even trading of health services.
“The rigid model of health care funding does not serve rural and remote Australia well,” concluded Professor Ball.
Patrick Ball was appointed Australia’s first Professor of Rural and Remote Pharmacy when he joined CSU in 2005. His work centres on the provision of health services in rural and remote Australia. Professor Ball is based at the School of Biomedical Sciences at CSU at Wagga Wagga.
“A model of health-care funding for rural and remote Australia should be developed based on fundamental human rights and access to services rather than ‘bricks and mortar’,” said Professor Patrick Ball.
The Professor of Rural and Remote Pharmacy Patrick Ball studied two communities in Central West NSW between 2006 and 2008 as part of his examination of the provision of health services outside Australia.
“The two communities were similar and only a short distance apart but had very different health care needs due to transport links and proximity to a city,” said Professor Ball.
“We have the evidence to show that what is needed by rural and remote areas is more flexibility in allowing individual communities to meet their health needs and more emphasis on access to services rather than what hospital and which health facilities are located where.
“The expenditure of the health dollar has been centrally controlled and based on a mix of what a community has traditionally had and what the community has secured through pressure and lobbying.
“No community can have everything; therefore there is a need for flexibility in the future, including the sharing of health services between big and small communities and even trading of health services.
“The rigid model of health care funding does not serve rural and remote Australia well,” concluded Professor Ball.
Patrick Ball was appointed Australia’s first Professor of Rural and Remote Pharmacy when he joined CSU in 2005. His work centres on the provision of health services in rural and remote Australia. Professor Ball is based at the School of Biomedical Sciences at CSU at Wagga Wagga.
Federal health reforms not enough for regional Australia
A Charles Sturt University (CSU) health researcher does not believe the latest round of health reforms in Canberra will address the difference in health services available to rural and metropolitan residents.
“The current focus on hospital services will not necessarily improve the health of rural people. Improving acute care in major hospitals by reducing hospital waiting lists for elective surgery and waiting times in emergency rooms is great for our regional cities,” said Associate Professor Sue McAlpin, the Associate Head of the University’s School of Dentistry and Health Sciences.
“But rural people need much improved access to primary health services, GPs and allied health services, as well as better coordination between aged care and community based services.”
As part of her recently completed PhD, Professor McAlpin investigated the so-called ‘decade of chaos’ that plagued rural health services in NSW during the 1990s.
“Rural people currently have fewer health services available to them and poorer health status, while Indigenous people have a life expectancy 17 years less than non-Indigenous Australians.
“The reforms will address the former blame game of different levels of government, local, State and Federal. In the past, the Federal government funded medical and aged care services and the States funded hospitals.
“Under the proposed ‘one funding’ arrangements, we should see more coordinated care across the health system if primary, mental and aged care services are integrated appropriately through local health networks. There also needs to be a focus and adequate funding of preventative health services to address the risk factors for preventing diseases, rather than just maintaining an ‘ill health‘ system.”
Professor McAlpin said the success of the reforms in improving the health of rural and remote residents will depend upon the availability of an accessible health workforce in rural and remote Australia, which should include sufficient doctors, nurses and allied health staff.
“My research also identified the need for quality health service managers to implement the reforms across the new health networks,” Professor McAlpin said.
“The current focus on hospital services will not necessarily improve the health of rural people. Improving acute care in major hospitals by reducing hospital waiting lists for elective surgery and waiting times in emergency rooms is great for our regional cities,” said Associate Professor Sue McAlpin, the Associate Head of the University’s School of Dentistry and Health Sciences.
“But rural people need much improved access to primary health services, GPs and allied health services, as well as better coordination between aged care and community based services.”
As part of her recently completed PhD, Professor McAlpin investigated the so-called ‘decade of chaos’ that plagued rural health services in NSW during the 1990s.
“Rural people currently have fewer health services available to them and poorer health status, while Indigenous people have a life expectancy 17 years less than non-Indigenous Australians.
“The reforms will address the former blame game of different levels of government, local, State and Federal. In the past, the Federal government funded medical and aged care services and the States funded hospitals.
“Under the proposed ‘one funding’ arrangements, we should see more coordinated care across the health system if primary, mental and aged care services are integrated appropriately through local health networks. There also needs to be a focus and adequate funding of preventative health services to address the risk factors for preventing diseases, rather than just maintaining an ‘ill health‘ system.”
Professor McAlpin said the success of the reforms in improving the health of rural and remote residents will depend upon the availability of an accessible health workforce in rural and remote Australia, which should include sufficient doctors, nurses and allied health staff.
“My research also identified the need for quality health service managers to implement the reforms across the new health networks,” Professor McAlpin said.
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