Pharmacoeconomics (PE), a sub discipline of health economics, evaluates the behaviour of individuals, firms, and markets relevant to the use of pharmaceutical products, services, and programs, and with the focus on the costs (inputs) and consequences (outcomes) of that use. In other words it identifies, compare and measure the cost and value of one pharmaceutical drug or drug therapy to another. In broad term, it teaches the three basic outcomes i.e. clinical, economic, and humanistic to be considered in drug therapy.
Pharmacoeconomics evaluation is an analytical tool, used with increasing frequency to assist decision making in the management and financing of pharmaceutical products in the health care system or national health insurance programs of an individual country. Cost-minimization, cost-effectiveness, cost-utility and cost-benefit are the four techniques commonly used in economic evaluation. The pharmacoeconomic evaluation is of paramount importance for different healthcare organizations before reaching any conclusive decision, as the selected perspective is largely dependent on the result of PE studies. In addition, PE guidelines can be used for designing and conducting a study, and serve as template for evaluating the economic study reports. It also serves as the basis for the determination of research allocation, funding and its utilisation value of health benefits and outcomes.
Beyond its role in the field of hospital pharmacy activities to control drug cost, pharmacoeconomic assessment of formulary actions has become a standardized part of many pharmacy and therapeutic committees (PTC). These studies are also helpful in fixing the price of a new drug and 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, drug development and clinical trials. Health care spending has grown substantially faster, at the same time healthcare community is becoming more sensitive to cost. Indian pharmaceutical industry, third largest producer of drugs by volume, produces diverse number of generic medicines. The concept of healthcare insurance is yet to be popularized in the country. Nearly 85% of total health expenditure is financed by house-hold, out-of–pocket expenditure. Despite enormous growth in wealth the gap between the health of the richest and poorest continues to widen.
PE has a wide role in health policy decision making by different healthcare professionals, policy makers, healthcare providers, health-care administrators, and health managers. The utility could be observed even in small practice setting where practitioners can benefit from applying the principles and methods of PE. Various clinical decisions, whether for patients’ perspective or for entire healthcare system, is always supported by the existing pharmacoeconomic data. Typically, economic modelling, defined as an explicit, quantitative, and prescriptive approach to decide among alternative outcomes in clinical decision analysis. In conclusion, healthcare professionals can plan for make improved, more well-versed decisions regarding the use of available products and services in the interests of the patient, the healthcare system, and society.
WorkSure® involves well trained and highly experienced team of medical professionals, economists and bio-statisticians. WorkSure® team specializes in Pharmacoeconomic studies, modelling and various healthcare budget analysis. We at WorkSure® has successfully completed many pharmcoeconomic projects, budget impact analysis studies and have helped various healthcare companies optimize their resources and promotional activities.