## Rationalizing Pharmaceutical Spending

_IMF Working Papers, September 16, 2022_

## Source details

**Canonical URL:** [Rationalizing Pharmaceutical Spending](https://www.imf.org/en/publications/wp/issues/2022/09/16/rationalizing-pharmaceutical-spending-523569)

## Other formats

- [Markdown version](/en/publications/wp/issues/2022/09/16/rationalizing-pharmaceutical-spending-523569/index.md)
- [Structured JSON version](/en/publications/wp/issues/2022/09/16/rationalizing-pharmaceutical-spending-523569/index.json)
- [Bundle manifest](/en/publications/wp/issues/2022/09/16/rationalizing-pharmaceutical-spending-523569/bundle-manifest.json)

## Bibliographic details
- Authors: Manuel García-Goñi
- Published: September 16, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400219849.001

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### Summary
- Author: Manuel García-Goñi
- Publication date: September 16, 2022
- Paper series: IMF Working Papers, Working Paper No. 2022/190
- Core focus: Review of literature and databases on the level and composition of pharmaceutical spending; estimation of potential efficiency gains from increased use of generics; review of procurement and tendering arrangements and their implications for spending; identification of channels of spending inefficiencies and reform options to reduce pharmaceutical spending while ensuring quality health outcomes.
- Key subjects: Consumption, Expenditure, Health, Health care, Health care spending, National accounts
- Keywords: biosimilar, Consumption, economic evaluation, efficiency gain, Europe, generics, Global, Health care, Health care spending, percentage value share, pharmaceutical policy, Pharmaceutical spending, procurement, share of generic, volume share

### Major findings and analytical emphases
- Pharmaceutical spending accounts for a large share of health spending worldwide.
- The large variation in pharmaceutical spending across countries suggests substantial potential efficiency gains.
- The paper:
  - Reviews existing literature and databases on the level and composition of pharmaceutical spending.
  - Estimates potential efficiency gains from increased use of generics.
  - Reviews how countries organize procurement and tendering of pharmaceuticals and the implications for spending.
  - Identifies the various channels through which spending inefficiencies can arise.
  - Identifies reform options for reducing pharmaceutical spending while ensuring quality health outcomes.

### Policy implications and reform options (as presented)
- Increase use of generics to realize potential efficiency gains.
- Optimize procurement and tendering mechanisms to reduce spending without compromising quality.
- Address identified channels of spending inefficiencies with targeted reforms to preserve or improve health outcomes.

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## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2022/english/wpiea2022190-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2022/english/wpiea2022190-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2022/09/16/rationalizing-pharmaceutical-spending-523569_