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The New Drug Reimbursement Game

A Regulator’s Guide to Playing and Winning

Authors: Pekarsky, Brita A.K.

  • Addresses the choice of the decision threshold and the relationship between pharmaceutical innovation, price and future health
  • Provides a practical introduction to applied game theory
  • Allows experienced health economists to make inroads into the world of applied game theory
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eBook 51,16 €
price for Spain (gross)
  • ISBN 978-3-319-08903-4
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 62,39 €
price for Spain (gross)
  • ISBN 978-3-319-08902-7
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Softcover 62,39 €
price for Spain (gross)
  • ISBN 978-3-319-34920-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
About this book

This comprehensive text presents a rigorous framework from within which regulators can respond strategically to the claim by the pharmaceutical industry that lower drug prices today lead to a loss for the population’s future health due to less innovation.  It starts with a critical review of the empirical evidence of the return to consumers on their ongoing investment into high drug prices in order to increase future innovation.  The implicit, critical and unrealistic assumption inherent in these studies is identified, namely that the health budget can be expanded to purchase drugs at higher prices without an opportunity cost, for example, the foregone benefits of alternative investments in health care infrastructure. 

Price effectiveness analysis (PEA), is introduced. PEA informs the question of how the innovative surplus from the new drug should be allocated between the manufacturer and the consumer so as to optimise society’s welfare.  The method allows the decisions by the regulator and the firm to be analysed jointly by specifying the firm’s production and revenue functions in terms of the clinical innovation of a new drug; the incremental effect used in the summary metric of cost effectiveness analysis. An economic value of innovation that takes into account opportunity cost under conditions of economic efficiency in the health system is proposed: the health shadow price.   

The limitations of the non-strategic methods that currently inform the highly contested new drug subsidy game are presented and the relative strengths of PEA are demonstrated.  Health technology assessment quantifies both the clinical innovation of a new drug and its financial impact on the health system.  Cost effectiveness analysis tests the relationship between the incremental cost and incremental effect of a new drug for target patients, at a given price.  PEA tests the relationship between the price of a new drug and the health of the whole population, now and into the future. It achieves this by taking into account current inefficiency in both resource allocation and the displacement process, and the relationship between price and future innovation.  

 

About the authors

Brita Pekarsky is a Senior Research Fellow at the School of Population Health, University of South Australia. Dr Pekarsky’s research is in the areas of pharmacoeconomics, pharmaceutical regulation and Aboriginal health care financing. She received her PhD from the University of Adelaide, jointly in Economics and Population Health. Dr Pekarsky is on the Editorial Board for Applied Health Economics and Health Policy. She was a member of the Economic Subcommittee of the Australian Pharmaceutical Benefits Advisory Committee from 1997 to 2013.

Reviews

“I like this book … and would recommend it to anyone who wishes to understand the negotiations between health-care payers and biopharmaceutical companies. … Pekarsky provides useful overviews of the many academic fields that contribute to debates on the appropriate price to pay for new drugs … .” (Christopher J. McCabe, Applied Health Economics and Health Policy, October, 2015)


Table of contents (11 chapters)

  • Introduction

    Pekarsky, Brita A. K.

    Pages 1-17

    Preview Buy Chapter 30,19 €
  • Reframing the Political Economy of New Drugs

    Pekarsky, Brita A. K.

    Pages 21-36

    Preview Buy Chapter 30,19 €
  • The Social Rate of Return on Investment in Pharmaceutical Research and Development

    Pekarsky, Brita A. K.

    Pages 37-57

    Preview Buy Chapter 30,19 €
  • The Clinical Value of Innovation

    Pekarsky, Brita A. K.

    Pages 59-67

    Preview Buy Chapter 30,19 €
  • The Shadow Price, λ

    Pekarsky, Brita A. K.

    Pages 69-85

    Preview Buy Chapter 30,19 €

Buy this book

eBook 51,16 €
price for Spain (gross)
  • ISBN 978-3-319-08903-4
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 62,39 €
price for Spain (gross)
  • ISBN 978-3-319-08902-7
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Softcover 62,39 €
price for Spain (gross)
  • ISBN 978-3-319-34920-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
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Bibliographic Information

Bibliographic Information
Book Title
The New Drug Reimbursement Game
Book Subtitle
A Regulator’s Guide to Playing and Winning
Authors
Copyright
2015
Publisher
ADIS
Copyright Holder
Springer International Publishing Switzerland
eBook ISBN
978-3-319-08903-4
DOI
10.1007/978-3-319-08903-4
Hardcover ISBN
978-3-319-08902-7
Softcover ISBN
978-3-319-34920-6
Edition Number
1
Number of Pages
XVI, 248
Number of Illustrations and Tables
9 b/w illustrations
Topics