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Regulating the Dutch pharmaceutical market: improving efficiency or controlling costs?
Peter de Wolf1, Werner B F Brouwer, Frans F H Rutten
1Wageningen Business School, Wageningen University, Wageningen, The Netherlands. peter.dewolf@wur.nl
The International Journal of Health Planning and Management
|December 13, 2005
Summary
The Dutch government
Area of Science:
- Health economics and policy
- Pharmaceutical market analysis
Background:
- The Dutch pharmaceutical market is characterized by significant government regulation aimed at controlling rising drug costs.
- Pharmaceutical expenditure in the Netherlands is increasing at a rate higher than overall healthcare expenditure.
Purpose of the Study:
- To evaluate the effectiveness of the Dutch government's regulatory system for pharmaceutical cost containment.
- To identify inefficiencies within the current Dutch pharmaceutical market regulation.
Main Methods:
- Analysis of the Dutch pharmaceutical market structure and regulatory policies.
- Examination of pharmaceutical expenditure trends and generic drug market dynamics.
- Assessment of the impact of wholesaler discounts on cost savings.
Main Results:
- The current regulatory system is largely ineffective in controlling outpatient pharmaceutical expenditure.
- Despite a growing generic market share, overall pharmaceutical expenditure has not significantly decreased.
- Wholesaler discounts on generics primarily benefit private entities, not society.
Conclusions:
- The existing Dutch pharmaceutical regulatory framework lacks incentives for efficiency.
- Reforming the system to foster competition and insurer-led efficiency is recommended.
- Dismantling current regulations and empowering insurers could improve cost containment.