Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy
Abstract Background Policymakers are faced with the challenge of balancing patient’s access for effective and affordable medicines to sustain the rising healthcare costs. In a mixed healthcare market such as Malaysia, coverage decisions of new medicines are different: public funded health system has...
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| Format: | Article |
| Language: | English |
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BMC
2021-10-01
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| Series: | BMC Health Services Research |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s12913-021-06786-6 |
| _version_ | 1818898411992121344 |
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| author | Nurhafiza Md Hamzah Kok Fong See |
| author_facet | Nurhafiza Md Hamzah Kok Fong See |
| author_sort | Nurhafiza Md Hamzah |
| collection | DOAJ |
| description | Abstract Background Policymakers are faced with the challenge of balancing patient’s access for effective and affordable medicines to sustain the rising healthcare costs. In a mixed healthcare market such as Malaysia, coverage decisions of new medicines are different: public funded health system has a formulary listing process whereas for private sector, which is a market-based economy, depends on patient’s willingness to pay and insurance coverage. There is little overlap between public and private healthcare service delivery with access to new innovative medicines, as differentiated by sources of funding. The objectives of this study were to examine the diffusion of New Chemical Entities (NCEs) into the public and private healthcare market between 2010 and 2014, and determine the factors explaining the diffusion. Methods We matched medicines from the product registration database by medicine formulation to medicines in IQVIA National Pharmaceutical Audit database for each year. The price per Defined Daily Dose (DDD), market concentration and generic utilization share variables were calculated. A panel fixed effect model was performed to measure diffusion of NCEs for each year and test possible determinants of diffusion of NCEs for overall market and sector specifics. Results The utilization of NCEs was larger in the private sector compared to the public sector but the speed of diffusion over time was higher in the public sector. Price per DDD was negatively associated with diffusion of NCEs, while generic utilization share was significantly regressive in the public sector. Market concentration was negatively associated with utilization of NCEs, however result tends to be mixed according to sector and Anatomical Therapeutic Chemical (ATC) category. Conclusions Understanding key aspects of sectoral variation in diffusion of NCEs are crucial to reduce the differences of access to new medicines within a country and ensure resources are used on cost effective treatments. |
| first_indexed | 2024-12-19T19:31:39Z |
| format | Article |
| id | doaj.art-a0f00eb1bca74ed0b8b316f86774c525 |
| institution | Directory Open Access Journal |
| issn | 1472-6963 |
| language | English |
| last_indexed | 2024-12-19T19:31:39Z |
| publishDate | 2021-10-01 |
| publisher | BMC |
| record_format | Article |
| series | BMC Health Services Research |
| spelling | doaj.art-a0f00eb1bca74ed0b8b316f86774c5252022-12-21T20:08:35ZengBMCBMC Health Services Research1472-69632021-10-0121111210.1186/s12913-021-06786-6Differential diffusion of pharmaceutical innovations in a mixed market middle - income economyNurhafiza Md Hamzah0Kok Fong See1Planning Division, Ministry of Health Malaysia, Federal Administrative CentreEconomics Programme, School of Distance Education, Universiti Sains MalaysiaAbstract Background Policymakers are faced with the challenge of balancing patient’s access for effective and affordable medicines to sustain the rising healthcare costs. In a mixed healthcare market such as Malaysia, coverage decisions of new medicines are different: public funded health system has a formulary listing process whereas for private sector, which is a market-based economy, depends on patient’s willingness to pay and insurance coverage. There is little overlap between public and private healthcare service delivery with access to new innovative medicines, as differentiated by sources of funding. The objectives of this study were to examine the diffusion of New Chemical Entities (NCEs) into the public and private healthcare market between 2010 and 2014, and determine the factors explaining the diffusion. Methods We matched medicines from the product registration database by medicine formulation to medicines in IQVIA National Pharmaceutical Audit database for each year. The price per Defined Daily Dose (DDD), market concentration and generic utilization share variables were calculated. A panel fixed effect model was performed to measure diffusion of NCEs for each year and test possible determinants of diffusion of NCEs for overall market and sector specifics. Results The utilization of NCEs was larger in the private sector compared to the public sector but the speed of diffusion over time was higher in the public sector. Price per DDD was negatively associated with diffusion of NCEs, while generic utilization share was significantly regressive in the public sector. Market concentration was negatively associated with utilization of NCEs, however result tends to be mixed according to sector and Anatomical Therapeutic Chemical (ATC) category. Conclusions Understanding key aspects of sectoral variation in diffusion of NCEs are crucial to reduce the differences of access to new medicines within a country and ensure resources are used on cost effective treatments.https://doi.org/10.1186/s12913-021-06786-6Panel regressionMedicines utilizationDiffusionNew Chemical EntitiesAdoption |
| spellingShingle | Nurhafiza Md Hamzah Kok Fong See Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy BMC Health Services Research Panel regression Medicines utilization Diffusion New Chemical Entities Adoption |
| title | Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy |
| title_full | Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy |
| title_fullStr | Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy |
| title_full_unstemmed | Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy |
| title_short | Differential diffusion of pharmaceutical innovations in a mixed market middle - income economy |
| title_sort | differential diffusion of pharmaceutical innovations in a mixed market middle income economy |
| topic | Panel regression Medicines utilization Diffusion New Chemical Entities Adoption |
| url | https://doi.org/10.1186/s12913-021-06786-6 |
| work_keys_str_mv | AT nurhafizamdhamzah differentialdiffusionofpharmaceuticalinnovationsinamixedmarketmiddleincomeeconomy AT kokfongsee differentialdiffusionofpharmaceuticalinnovationsinamixedmarketmiddleincomeeconomy |