2. At about US$300 billion a year, the global pharmaceuticals
industry wields a huge amount of influence in the
healthcare sector. Along with medical institutions and
hospitals, big pharma is a dominant force that could make
a big difference.
In a recent finding by IMS Health, global medicine
spending will pass the $1 Trillion mark in 2014. It was
further revealed that: “in absolute terms, global spending
on prescription medicines will increase by $205-$235Bn in
the five years to 2017, reaching over $1 trillion. The level
of increase is comparable to the $234Bn by which
spending increased in the previous five year period.”
“
There is a role and
responsibility for pharma
companies to become
partners in the efforts to
improve hospitals and
healthcare delivery. This
must be approached in a
very cautious manner to
ensure that the inherent
conflicts are managed
properly.
”
Steven Thompson, CEO
Johns Hopkins Medicine
International
Despite the optimism, it is interesting to note that in the
developed world, the picture is more complicated than a
simple growth story. According to Gerald Clarke, in a recent
article published on Pharma IQ, “factors increasing
spending on pharmaceuticals include the appearance of
new drugs for various diseases such as cancer and an
increasingly aging population.” The United States’
Affordable Care Act could potentially also increase pharma
spending as previously uninsured people gain coverage.
However some of this trend is counteracted by
blockbusters dropping off patent, causing many to move to
cheaper generics. Additionally, the global financial crisis
has caused many governments to look for areas to cut
spending and many of them are looking towards their
medicines spend.
“China, more than any other country, will be a main driver
of growth with a CAGR of 14-17% until 2017. The country
aims to have total healthcare coverage of its 1.35 billion
population by the year 2020 which could mean over $180
billion in growth over the 4 year period. In countries such
as China, it is likely to be the increased take-up of generic
medicines which will drive growth,” notes Mr. Clarke.
What Big Hospitals Want Big Pharma to Realize
3. “
Pharma companies can be
more proactive in terms of
promoting patient safety. A
good starting point is
package design that can
reduce medication errors.
”
Dr. Krit Pongpirul
Quality Advisor
Bumrungrad International
Hospital
Putting market demands aside, the world’s top hospitals
believe that pharmaceutical companies can also expand
their role beyond their current status to help improve
patient safety and hospital efficiency.
According to Mr. Steven Thompson, CEO of Johns Hopkins
Medicine International, the No. 1 hospital in the world
(based on annual U.S. News & World Report Best Hospitals
rankings), “there is a role and responsibility for pharma
companies to become partners in the efforts to improve
hospitals and healthcare delivery. This must be
approached in a very cautious manner to ensure that the
inherent conflicts are managed properly. There is
significant knowledge and ability in these organizations
that can create mutually beneficial improvements to
patient outcomes and health status.”
Dr. Krit Pongpirul, Quality Advisor at Bumrungrad
International Hospital, Thailand’s best-known facility for
hospital tourism agrees: “Pharma companies can be more
proactive in terms of promoting patient safety. A good
starting point is package design that can reduce
medication errors.”
What Big Hospitals Want Big Pharma to Realize
4. “
Western pharma
companies need to stop
charging first world price
for developing countries.
By sheer number of
patients alone, they will
still make the same
amount of profit. Right
now, they only reach those
who can afford it.
”
Michael Wong, CEO
Pantai Hospital
While pharma companies have traditionally been productbased, Mr. Mark Cheong, Cluster Manager of University of
Melaya Specialist Centre believes they could potentially
shift “to providing comprehensive solutions and services
related to a particular therapeutic area.”
He further adds: “We’re seeing diagnostic companies and
dialysate-producing companies head towards that direction
and becoming the subject matter experts in managing
patients in their respective therapeutic areas. Pharma
companies could possibly add value to hospitals and other
healthcare organizations by collaborating and providing
expertise in setting up healthcare services centred on their
pharmaceutical product. The combination of expertise and
knowledge could result in higher standards of care, more
judicious and effective use of pharmaceuticals and better
outcomes for patients.”
A rather sensible approach was offered by Mr. Michael
Wong, CEO of Pantai Hospital: “Western pharma
companies need to stop charging first world price for
developing countries. By sheer number of patients alone,
they will still make the same amount of profit. Right now,
they only reach those who can afford it.”
Learn more about Improving Efficiencies,
Minimizing Wastage and Managing Costs while
Improving Patient Safety and Healthcare
Outcomes at the 3rd Annual Hospital Efficiency
& Quality Asia Summit 2014. To find out more,
visit www.hospitalefficiencyquality-asia.com
Disclaimer: Please note that we do all we can to ensure accuracy and timeliness of the information presented herein but errors may still understandably occur in some cases. If you believe that a serious inaccuracy
has been made please let us know. This article is provided for information purposes only. IQPC accepts no responsibility whatsoever for any direct or indirect losses arising from the use of this report or its contents.
Reference: Pharma IQ: Global Medicine Spending to Pass $1 Trillion in 2014 - http://www.pharma-iq.com/market-access/articles/global-medicine-spending-to-pass-1-trillion-in-201/
