INTRODUCTION TO PHARMACOECONOMICS.pptx

Pharmacoeconomics is the one of the evolving area in Clinical pharmacy. Let's go through the history of PE and need of PE in India.

1. INTRODUCTION TO PHARMACOECONOMICS AMEENA KADAR K A SECOND SEM M PHARM DEPT. OF PHARMACY PRACTICE SANJO COLLEGE OF PHARMACEUTICAL STUDIES

2. PHARMACOECONOMICS 2 The term Pharmacoeconomics is the outcome of the union of two words ‘ Pharmacon ’ (means drugs) and ‘ economics ’. The literal meaning is “ Economics of drugs”. Pharmacoeconomics is the economics of drugs and health care based on the use of drugs. Pharmacoeconomics was defined as the "analysis of the costs of drug therapy to health care systems and society" (Townsend RJ 1986). This definition was concerned with costs alone. It did not consider the results from the use of drugs.

3. 3 In 1990s the concept of pharmacoeconomic research was specified as " assessing the implications of projected outcomes and costs of pharmaceutical products for the decision whether to continue or stop development of a drug and for global pricing policy " (Clemens K 1993). Pharmacoeconomics is the health care discipline of placing a value on drug therapy. It helps to measure the cost and consequences of various therapeutic decision making process in health care.

4. DEFINITION 4 Pharmacoeconomics can be defined as the study of how individuals and groups choose to allocate scarce pharmaceutical and health resources among competing alternative uses and opt to distribute the products and services among members of the society. OR Pharmacoeconomics is a scientific discipline with the cost and value of drugs, often with the goal of optimizing the allocation of health care resources.

5. HISTORY OF PHARMACOECONOMICS 5 The concept of pharmacoeconomics as it is understood today, originated in the 1970s in USA. The evolvement of pharmacy as a clinically oriented discipline and the incorporation of clinical pharmacy in the pharmacy curriculum contributed positively for the genesis and development of pharmacoeconomics as a super specialty in Health Economics. The Pharm D program started in the 1950s in some Universities in USA helped very much to popularize pharmacoeconomics as a subject in academic programs first in USA and then other parts of the world. Pharmacoeconomics evolved as a subdivision of health economics.

6. 6 The first book on health economics was published in 1973 (Cooper MH 1973). In 1976 McGhan , Rowland and Bootman introduced course materials related to pharmacoeconomics into the undergraduate and graduate pharmacy curricula at University of Minnesota, USA. In 1978 McGhan introduced the concept of cost effectiveness and cost-benefit analysis pharmaceutical literature. In 1979 Bootman et al., published a research article in which cost benefit analysis was used to evaluate the outcome of individualizing aminoglycoside dosage in seriously burned patients with gram negative septicemia using sophisticated pharmacokinetic protocols (Bootman JL 1979).

7. 7 However the term pharmacoeconomics was not used till 1982. The term pharmacoeconomics was introduced in literature in 1982 by Townsend (Townsend RJ, 1986), though it was coined by some others in early 1980s. In 1983, Ohio State University College of Pharmacy initiated a specialized pharmacy academic program with the objective of providing an overview of the application of cost benefit and cost effective analysis in health care with emphasis on their application to the delivery of pharmaceutical care. In 1992, a journal was started for pharmacoeconomics with the name 'Pharmacoeconomics'. By 1990s pharmacoeconomics became an integral component of MS/ M. Pharm programs and Pharm D.

8. 8 When pharmacy practitioners started to apply the result of pharmacoeconomic research to therapeutic decision making, the patients started getting increased positive outcomes. By 2014 pharmacoeconomics became a critical and vital component of pharmacy curriculum at global levels.

9. NEED OF PE STUDIES IN INDIAN HEALTHCARE SYSTEM 9 India is a thickly populated country with 1/6 th of the world's population. The number of medicines is very large, perhaps the largest in the world. Brand name prescriptions are the rule of the day. Formulary system is very weak. Pharmacoeconomics can be used as a tool to study various issues in the drug therapy program in the country. Practicing pharmacists in community, hospital and clinical settings in India can benefit considerably from the application of the principles of pharmacoeconomics into their normal practice settings.

10. 10 Proper application of pharmacoeconomics will empower the pharmacy practitioners and administrators to make better and more informed decisions regarding products and services they provide . Pharmacoeconomic evaluations have to be used as a basis for resource allocation and utilization in the country. It is particularly important for health policy decision-making. It is important that this concept be understood not only by policy makers, health administrators and health managers, but also by primary care providers. In India, primary care providers are provided with many new drugs of same category in addition to the existing old drugs. Often the new drugs are available in large quantities.

11. 11 It can confuse the doctors and administrators for the judicious selection and rational use of medicines. A new drug has to be approved for a program based on pharmacoeconomic analysis. In some countries (e.g. Australia, Canada and New Zealand) pharmacoeconomic evaluation is a mandatory part of the dossier for new drug applications, and also for the drug to be considered for reimbursement by health care or insurance companies.

12. APPLICATIONS OF PHARMACOECONOMICS 12 Fixing the price of a new drug. Re-fixing the price of an existing drug. Finalizing a drug formulary. Creating data for promotional materials of medicines. Compliance of requirement for drug license. Including a drug in the medical/insurance reimbursement schemes. Introduction of new schemes and programs in hospital pharmacy and clinical pharmacy.

13. REFERENCES 13 A Textbook of Pharmacy Practice by K.G. Revikumar : Revised second Edition, Page No. 399-400, 428-431. Pharmacoepidemiology and Pharmacoeconomics, Concepts and practices by K.G Revikumar , Page No.173-191. THANK YOU!