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Does Pharmaceutical Pricing Transparency Matter? Examining Brazil's Public Procurement System
Jillian Clare Kohler1,2, Nicholas Mitsakakis3,4, Faridah Saadat5
1Leslie Dan Faculty of Pharmacy, University of Toronto, 144 College St., Toronto, ON, M5S 3M2, Canada. jillian.kohler@utoronto.ca.
Globalization and Health
|August 5, 2015
Summary
Brazil
Area of Science:
- Health Economics
- Pharmaceutical Policy
Background:
- Review of pharmaceutical procurement and pricing transparency practices.
- Focus on Brazil's approach to increasing pricing transparency.
Purpose of the Study:
- Evaluate the effectiveness of the Banco de Preços em Saúde (BPS) tool in lowering drug prices.
- Compare Brazil's price transparency model with international approaches.
Main Methods:
- Analysis of pricing data for 25 drugs using regression and mixed-effects models.
- Controlled for procurement quantities, state, time, institutions, and suppliers.
- Estimated 38 models to assess the effect of time on unit prices using R statistical software.
Main Results:
- No consistent pattern of price decreases observed in Brazilian states over a five-year period.
- The BPS tool increased transparency but did not consistently reduce prices for widely used medicines.
Conclusions:
- The BPS tool's impact on reducing pharmaceutical prices in Brazil is limited.
- Questions the global effectiveness of transparency tools in addressing pharmaceutical procurement challenges.
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