Community financing for essential drugs in Nepal

Area of Science:

• Health economics
• Pharmaceutical management
• Public health policy

Background:

• Local cost-sharing schemes can generate revenue for essential drug supply.
• These schemes have the potential to reduce drug wastage.
• Previous implementations indicate resource generation but face operational challenges.

Purpose of the Study:

• To evaluate the effectiveness of local cost-sharing schemes in resource generation for essential medicines.
• To identify barriers to the optimal utilization of funds generated through cost-sharing.
• To provide insights into improving the management and operational principles of such schemes.

Main Methods:

• Analysis of existing literature on local cost-sharing schemes for essential drugs.
• Review of case studies documenting revenue generation and resource allocation.
• Identification of common operational and management challenges reported in the literature.

Main Results:

• Local cost-sharing schemes successfully raise funds from users for essential drug procurement.
• Significant reduction in drug wastage has been observed in implemented schemes.
• Lack of clear operating principles and inadequate management support impede effective resource utilization.

Conclusions:

• Cost-sharing schemes are a viable mechanism for financing essential drugs and reducing waste.
• Clearer guidelines and stronger management are crucial for maximizing the benefits of these schemes.
• Further research is needed to develop standardized operational frameworks for successful implementation.