Recent trends in drug utilization in Israel

Area of Science:

• Health Economics
• Pharmaceutical Policy
• Public Health

Background:

• Significant rise in medicine expenditure and consumption in Israel during the late 1980s compared to the previous decade.
• Israel experienced high growth rates in total and per capita medicine expenditure at constant prices, relative to OECD countries from the late 1970s to late 1980s.

Purpose of the Study:

• To analyze trends in medicine expenditure and consumption in Israel during the 1980s.
• To compare medicine consumption patterns between the private pharmacy sector and Kupat Holim Klalit (Medical Insurance Scheme).
• To contextualize Israel's medicine consumption relative to other developed nations.

Main Methods:

• Analysis of medicine expenditure and consumption data in dollar terms and at constant prices.
• Comparison of per capita consumption between private pharmacies and Kupat Holim Klalit.
• International comparison of medicine consumption with OECD countries.

Main Results:

• Real per capita medicine consumption grew by an average of 9.4% annually in the latter half of the 1980s.
• The private pharmacy sector showed greater growth than Kupat Holim Klalit due to increased per capita consumption.
• Price-adjusted per capita consumption in Israel was comparable to the USA and UK, but lower than France and Italy.

Conclusions:

• Introduction of new drugs and changes in therapy are key drivers of real expenditure growth.
• Despite lower per capita expenditure, price-adjusted consumption is similar across Israeli healthcare sectors.
• Demographic factors may influence observed consumption patterns, warranting further investigation.