IDEAS home Printed from https://ideas.repec.org/a/spr/aphecp/v22y2024i5d10.1007_s40258-024-00888-y.html
   My bibliography  Save this article

Pricing, Procurement and Reimbursement Policies for Incentivizing Market Entry of Novel Antibiotics and Diagnostics: Learnings from 10 Countries Globally

Author

Listed:
  • Sabine Vogler

    (Gesundheit Österreich (GÖG/Austrian National Public Health Institute)
    Technische Universität Berlin)

  • Katharina Habimana

    (Gesundheit Österreich (GÖG/Austrian National Public Health Institute))

  • Manuel Alexander Haasis

    (Gesundheit Österreich (GÖG/Austrian National Public Health Institute))

  • Stefan Fischer

    (Gesundheit Österreich (GÖG/Austrian National Public Health Institute))

Abstract

Background Fostering market entry of novel antibiotics and enhanced use of diagnostics to improve the quality of antibiotic prescribing are avenues to tackle antimicrobial resistance (AMR), which is a major public health threat. Pricing, procurement and reimbursement policies may work as AMR ‘pull incentives’ to support these objectives. This paper studies pull incentives in pricing, procurement and reimbursement policies (e.g., additions to, modifications of, and exemptions from standard policies) for novel antibiotics, diagnostics and health products with a similar profile in 10 study countries. It also explores whether incentives for non-AMR health products could be transferred to AMR health products. Methods This research included a review of policies in 10 G20 countries based on literature and unpublished documents, and the production of country fact sheets that were validated by country experts. Initial research was conducted in 2020 and updated in 2023. Results Identified pull incentives in pricing policies include free pricing, higher prices at launch and price increases over time, managed-entry agreements, and waiving or reducing mandatory discounts. Incentives in procurement comprise value-based procurement, pooled procurement and models that delink prices from volumes (subscription-based schemes), whereas incentives in reimbursement include lower evidence requirements for inclusion in the reimbursement scheme, accelerated reimbursement processes, separate budgets that offer add-on funding, and adapted prescribing conditions. Conclusions While a few pull incentives have been piloted or implemented for antibiotics in recent years, these mechanisms have been mainly used to incentivize launch of certain non-AMR health products, such as orphan medicines. Given similarities in their product characteristics, transferability of some of these pull incentives appears to be possible; however, it would be essential to conduct impact assessments of these incentives. Trade-offs between incentives to foster market entry and thus potentially improve access and the financial sustainability for payers need to be addressed. Graphical Abstract

Suggested Citation

  • Sabine Vogler & Katharina Habimana & Manuel Alexander Haasis & Stefan Fischer, 2024. "Pricing, Procurement and Reimbursement Policies for Incentivizing Market Entry of Novel Antibiotics and Diagnostics: Learnings from 10 Countries Globally," Applied Health Economics and Health Policy, Springer, vol. 22(5), pages 629-652, September.
    • Handle: RePEc:spr:aphecp:v:22:y:2024:i:5:d:10.1007_s40258-024-00888-y
    DOI: 10.1007/s40258-024-00888-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40258-024-00888-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40258-024-00888-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Charalabos-Markos Dintsios & Nadja Chernyak, 2022. "How Far is Germany From Value-Based Pricing 10 Years After the Introduction of AMNOG?," Applied Health Economics and Health Policy, Springer, vol. 20(3), pages 287-290, May.
    2. David J. Mott & Grace Hampson & Martin J. Llewelyn & Jorge Mestre-Ferrandiz & Michael M. Hopkins, 2020. "Authors’ Reply to Hays: “A Multinational European Study of Patient Preferences for Novel Diagnostics to Manage Antimicrobial Resistance”," Applied Health Economics and Health Policy, Springer, vol. 18(3), pages 459-460, June.
    3. Neri, M. & Hampson, G. & Henshall, C. & Towse, A., 2019. "HTA and Payment Mechanisms for New Drugs to Tackle AMR," Research Papers 002208, Office of Health Economics.
    4. Huff-Rousselle, Maggie, 2012. "The logical underpinnings and benefits of pooled pharmaceutical procurement: A pragmatic role for our public institutions?," Social Science & Medicine, Elsevier, vol. 75(9), pages 1572-1580.
    5. Nikolaos Maniadakis & Anke-Peggy Holtorf & José Otávio Corrêa & Fotini Gialama & Kalman Wijaya, 2018. "Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage," Applied Health Economics and Health Policy, Springer, vol. 16(5), pages 591-607, October.
    6. Carl Rudolf Blankart & Tom Stargardt, 2017. "Preferred supplier contracts in post-patent prescription drug markets," Health Care Management Science, Springer, vol. 20(3), pages 419-432, September.
    7. Wouters, Olivier J. & Sandberg, Dale M. & Pillay, Anban & Kanavos, Panos, 2018. "The impact of pharmaceutical tendering on prices and market concentration in South Africa over a 14-year period," LSE Research Online Documents on Economics 90828, London School of Economics and Political Science, LSE Library.
    8. Villa, Federico & Tutone, Michaela & Altamura, Gianluca & Antignani, Sara & Cangini, Agnese & Fortino, Ida & Melazzini, Mario & Trotta, Francesco & Tafuri, Giovanni & Jommi, Claudio, 2019. "Determinants of price negotiations for new drugs. The experience of the Italian Medicines Agency," Health Policy, Elsevier, vol. 123(6), pages 595-600.
    9. Mehdi Touat & Marion Opatowski & Christian Brun-Buisson & Kristel Cosker & Didier Guillemot & Jerome Salomon & Philippe Tuppin & Gregoire de Lagasnerie & Laurence Watier, 2019. "A Payer Perspective of the Hospital Inpatient Additional Care Costs of Antimicrobial Resistance in France: A Matched Case–Control Study," Applied Health Economics and Health Policy, Springer, vol. 17(3), pages 381-389, June.
    10. Ex, Patricia & Vogt, Verena & Busse, Reinhard & Henschke, Cornelia, 2020. "The reimbursement of new medical technologies in German inpatient care: What factors explain which hospitals receive innovation payments?," Health Economics, Policy and Law, Cambridge University Press, vol. 15(3), pages 355-369, July.
    11. David J. Mott & Grace Hampson & Martin J. Llewelyn & Jorge Mestre-Ferrandiz & Michael M. Hopkins, 2020. "A Multinational European Study of Patient Preferences for Novel Diagnostics to Manage Antimicrobial Resistance," Applied Health Economics and Health Policy, Springer, vol. 18(1), pages 69-79, February.
    12. Juan Carlos Rejon-Parrilla & Jaime Espin & David Epstein, 2022. "How innovation can be defined, evaluated and rewarded in health technology assessment," Health Economics Review, Springer, vol. 12(1), pages 1-11, December.
    13. Vogler, Sabine & Fischer, Stefan, 2020. "How to address medicines shortages: Findings from a cross-sectional study of 24 countries," Health Policy, Elsevier, vol. 124(12), pages 1287-1296.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sydenham, Rikke Vognbjerg & Jarbøl, Dorte Ejg & Hansen, Malene Plejdrup & Justesen, Ulrik Stenz & Watson, Verity & Pedersen, Line Bjørnskov, 2022. "Prescribing antibiotics: Factors driving decision-making in general practice. A discrete choice experiment," Social Science & Medicine, Elsevier, vol. 305(C).
    2. Wettstein, Dominik J. & Boes, Stefan, 2022. "How value-based policy interventions influence price negotiations for new medicines: An experimental approach and initial evidence," Health Policy, Elsevier, vol. 126(2), pages 112-121.
    3. Mackintosh, Maureen & Tibandebage, Paula & Karimi Njeru, Mercy & Kariuki Kungu, Joan & Israel, Caroline & Mujinja, Phares G.M., 2018. "Rethinking health sector procurement as developmental linkages in East Africa," Social Science & Medicine, Elsevier, vol. 200(C), pages 182-189.
    4. Christensen, Elisabeth & Hirsch, Niels Christian & Andersen, Jonas Valbjørn & Ehlers, Lars Holger, 2022. "The analogue substitution model: Introducing competition in the absence of generic substitution in Danish hospitals," Health Policy, Elsevier, vol. 126(9), pages 844-852.
    5. Wouters, Olivier J. & Sandberg, Dale M. & Pillay, Anban & Kanavos, Panos G., 2019. "The impact of pharmaceutical tendering on prices and market concentration in South Africa over a 14-year period," Social Science & Medicine, Elsevier, vol. 220(C), pages 362-370.
    6. Dubois, Pierre & Lefouili, Yassine & Straub, Stéphane, 2021. "Pooled procurement of drugs in low and middle income countries," European Economic Review, Elsevier, vol. 132(C).
    7. Katharina Elisabeth Fischer & Taika Koch & Karel Kostev & Tom Stargardt, 2018. "The impact of physician-level drug budgets on prescribing behavior," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(2), pages 213-222, March.
    8. Vogler, Sabine, 2024. "Tackling medicine shortages during and after the COVID-19 pandemic: Compilation of governmental policy measures and developments in 38 countries," Health Policy, Elsevier, vol. 143(C).
    9. Nazaré Rego & João Claro & Jorge Pinho de Sousa, 2014. "A hybrid approach for integrated healthcare cooperative purchasing and supply chain configuration," Health Care Management Science, Springer, vol. 17(4), pages 303-320, December.
    10. Sabine Vogler & Katharina Habimana & Manuel Alexander Haasis, 2022. "Purchasing medicines for the public sector: Evaluation of the performance of centralised procurement in Portugal," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(4), pages 2007-2031, July.
    11. Matthias Klumpp & Dominic Loske & Silvio Bicciato, 2022. "COVID-19 health policy evaluation: integrating health and economic perspectives with a data envelopment analysis approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(8), pages 1263-1285, November.
    12. Wouters, Olivier J. & Sandberg, Dale M. & Pillay, Anban & Kanavos, Panos, 2018. "The impact of pharmaceutical tendering on prices and market concentration in South Africa over a 14-year period," LSE Research Online Documents on Economics 90828, London School of Economics and Political Science, LSE Library.
    13. Laura Grassi & Simone Fantaccini, 2022. "An overview of Fintech applications to solve the puzzle of health care funding: state-of-the-art in medical crowdfunding," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-27, December.
    14. Kjellberg, Hans & Sjögren, Ebba & Krafve, Linus Johansson, 2023. "The functions of known to be inaccurate prices in markets: A cross-country comparison of pharmaceutical list pricing," Journal of Business Research, Elsevier, vol. 167(C).
    15. Herr, A. & Suppliet, M., 2011. "Co-Payment Exemptions and Reference Prices: an Empirical Study of Pharmaceutical Prices in Germany," Health, Econometrics and Data Group (HEDG) Working Papers 11/18, HEDG, c/o Department of Economics, University of York.
    16. Sabine Vogler & Eveli Bauer & Katharina Habimana, 2022. "Centralised Pharmaceutical Procurement: Learnings from Six European Countries," Applied Health Economics and Health Policy, Springer, vol. 20(5), pages 637-650, September.
    17. Nikolaos Maniadakis & Anke-Peggy Holtorf & José Otávio Corrêa & Fotini Gialama & Kalman Wijaya, 2018. "Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage," Applied Health Economics and Health Policy, Springer, vol. 16(5), pages 591-607, October.
    18. Claudio Jommi & Carlotta Galeone, 2023. "The Evaluation of Drug Innovativeness in Italy: Key Determinants and Internal Consistency," PharmacoEconomics - Open, Springer, vol. 7(3), pages 373-381, May.
    19. Mai Duong & Rebekah J Moles & Betty Chaar & Timothy F Chen & World Hospital Pharmacy Research Consortium (WHoPReC), 2015. "Essential Medicines in a High Income Country: Essential to Whom?," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-14, December.
    20. Viviane Cássia Pereira & Jorge Otávio Maia Barreto & Francisco Assis da Rocha Neves, 2019. "Health technology reassessment in the Brazilian public health system: Analysis of the current status," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-18, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:aphecp:v:22:y:2024:i:5:d:10.1007_s40258-024-00888-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.