The Prescription Drug Market

2021 ◽  
pp. 14-37
Author(s):  
Neumann Peter J. ◽  
Cohen Joshua T. ◽  
Ollendorf Daniel A

This chapter describes how prescription drug markets deviate from “normal” competitive markets. On the demand side, there is considerable uncertainty in disease prognosis and treatment effects; buyers have much less information than sellers; consumers usually do not pay directly for their prescriptions but rather have health insurance, which protects them from a drug’s full price; and physicians and insurers play a major role in consumer choices. On the supply side, firms are heavily regulated, subject to laws requiring that drugs undergo extensive testing before entering the marketplace. Monopolies are a system feature, designed to incentivize companies to invest in expensive and risky drug discovery by providing the prospect of a big payoff if the investment succeeds. Patents and market exclusivity restrict competition and provide drug developers considerable pricing power. The challenge for policymakers is how to achieve reasonable or fair drug prices in light of these market distortions.

2021 ◽  
Author(s):  
Rena Conti ◽  
Brigham Frandsen ◽  
Michael Powell ◽  
James Rebitzer

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
N’doh Ashken Sanogo ◽  
Arone Wondwossen Fantaye ◽  
Sanni Yaya

Abstract Background Access to affordable and adequate healthcare in a health system determines the universal health coverage achievement for all residents in a country. Achieving access to healthcare requires the availability of a financing system that ensures access to and provision of adequate care, regardless of the ability to pay. In sub-Saharan Africa, accessibility, use and coverage of prenatal visits are very low and poor, which reduces the quality of care. This paper explored the impact of a social health insurance scheme on the quality of antenatal care in Gabon. Methods This qualitative study involved the analysis of data collected from semi-structured interviews and non-participant observations to assess the quality of antenatal care. The study elicited perceptions on the demand side (pregnant women) and the supply side (health professionals) in health facilities. Fifteen semi-structured interviews were conducted with pregnant women (aged between 15 and 49) and 5 with health professionals, who each had a seniority of at least 10 years, at different levels of care. Nine non-participant observations were also conducted. Coded transcripts were reviewed and analyzed using the Canadian Institute for Public Administration of Citizen-Centered Services model as an analytical guide. Results On the demand side, women were generally satisfied with the prenatal services they receive in health facilities. However, complaints were made about the rudeness of some nurses, the high price of the delivery kit (50,000 XAF), and the fact that some essential medicines for maternity are not covered. On the supply side, participants agreed that compulsory health insurance is important in providing antenatal care access to those who need it the most. However, some problems remain. The participants outlined some logistical problems and a lack of medical equipment, including the stock of drugs, disinfectants, and the absence of clean water. Conclusion Understanding the perceptions of pregnant women and health professionals regarding the quality of antenatal care can help to inform refinements to methods through which the services can be better provided. In addition, the study findings are vital to increasing the use of care, as well as combating high maternal mortality rates. Compulsory health insurance has improved the accessibility and utilization of healthcare services and has contributed to improved quality of care.


2003 ◽  
Vol 6 (1) ◽  
Author(s):  
Meredith B. Rosenthal ◽  
Ernst R. Berndt ◽  
Julie M. Donohue ◽  
Arnold M. Epstein ◽  
Richard G. Frank

The release of clarified Food and Drug Administration (FDA) guidelines and independent changes in consumer behavior provide an opportunity to study the effects of direct-to-consumer advertising (DTCA) in the prescription drug market alongside the effects of various physician-oriented promotions. We examine the effects of DTCA and detailing for brands in five therapeutic classes of drugs, using monthly aggregate U.S. data from August 1996 through December 1999. In terms of impact of DTCA on demand, we provide evidence on two issues: (1) do increases in DTCA increase the market size of an entire therapeutic class? and (2) does DTCA increase within-class market share of advertised drugs? Our findings suggest that, for these classes of drugs, DTCA has been effective primarily through increasing the size of the entire class. Overall, we estimate that 13 to 22 percent of the recent growth in prescription drug spending is attributable to the effects of DTCA.


2018 ◽  
Vol 48 (3) ◽  
pp. 393-408
Author(s):  
Jennifer Gatewood Owens ◽  
Michelle Smirnova

Given the rapid rise of prescription (Rx) opioid overdoses in the United States, it is crucial to understand how people acquire Rx drugs. Prior research suggests individuals obtain Rx drugs through both legal and illegal channels, but there has been limited qualitative research focused upon the intersections between Rx drug markets and other drug markets. To understand the similarities and differences, we interviewed 40 incarcerated women about their experiences with both markets. Based upon these conversations, we find that few women received pills exclusively through doctors and 90% of them had used illicit markets or informal social networks to acquire Rx drugs. Although there is extensive overlap between the users, dealers, and operations between Rx and illicit drug markets, these women draw attention to how certain agents, processes, and social reactions differ in meaningful ways that are crucial to an effective public health response.


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