Estimated Financing Amount Needed for Essential Medicines in China, 2014

Area of Science:

• Health Economics
• Pharmaceutical Policy
• Public Health

Background:

• China is exploring an independent financing system for essential medicines (EMs).
• Current financing mechanisms for EMs require further data and evidence.
• Establishing a robust financing system is crucial for healthcare accessibility.

Purpose of the Study:

• To estimate the financing amount required for essential medicines (EMs) in China for the year 2014.
• To provide data-driven evidence to inform the development of a national financing mechanism for EMs.
• To assess the financial needs for ensuring access to essential medicines.

Main Methods:

• Retrospective analysis of sales data for all 520 drugs on the 2012 national essential medicines list in China for 2014.
• Estimation of EMs costs by identifying drugs used for the 109 most common diseases in China.
• Utilized two distinct methodologies to cross-validate financing estimates.

Main Results:

• The estimated financing amounts for essential medicines (EMs) in China for 2014 ranged from $17,776.44 million to $19,094.09 million USD.
• Both estimation methods converged on a similar financial requirement.
• The study quantified the substantial financial investment needed for EMs.

Conclusions:

• An annual budget of approximately $20 billion USD is estimated to be necessary for essential medicines (EMs) in China.
• The findings support the establishment of an independent financing system for EMs.
• Irrational drug use, particularly with intravenous fluids and antibiotics, remains a significant challenge impacting healthcare costs.