Exam

• When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
• The Wealth of Nations was written

  1776
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Rational agents will select the choice which presents the highest benefits
• Rational agents


  • Consumers
  • Producers
  • Workers
  • Governments
• Consumers act rationally by


  Maximising their utility
• Producers act rationally by


  Selling goods/services in a way that maximises their profits
• Workers act rationally by


  Balancing welfare at work with consideration of both pay and benefits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Groups assumed to act rationally


  • Consumers
  • Producers
  • Workers
  • Governments
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• PHA6136 LECTURE
• SOCIAL AND ADMINISTRATIVE PHARMACY
• 2nd Semester
• Ms. Carol Geraldine C. Pablo, MSc.
• A.Y. 2023՞2024
• UNIT 2ր PHARMACEUTICAL SYSTEMS
• Outline


  • Health Policy
  • WHO: National Drug Policy (NDP)
  • Key Components of National Drug Policy (NDP)
  • Social and Administrative Requirements for Medicine Provision
  • Philippine National Drug Policy
• Health Policy


  Decisions, plans, and actions that are undertaken to achieve healthcare goals within a society
• According to WHO, a definite health policy can achieve several things:
• What a health policy can achieve

  • It defines a vision for the future
  • It outlines priorities and expected roles of different groups
• National Drug Policy (NDP)

  • It expresses and prioritized the medium- to long-term goals set by the government for the pharmaceutical sector and identifies the main strategies for attaining them
  • It provides a framework within which the activities of the pharmaceutical sector can be coordinated
  • It covers both the public and the private sectors and involves all the main actors in the pharmaceutical field
• Other specific reasons why NDP is needed


  • Ineffective system of drug administration and control
  • Inadequate funding of drug supply and control activities
  • High dependence on foreign sources for finished drug products
  • Inadequate facilities for storage, transportation, and distribution of drugs
  • Poor selection and procurement practices
  • Poor performance of drug suppliers
  • Essential drugs are not used for their potential
  • Lack of access to essential drugs
  • Irrational use of drugs
  • Involvement of unqualified people on procurement, distribution, and sale of drugs
  • Poor capacity utilization of the local drug manufacturing companies
  • Poor R & D activities, outcomes, and poor input into pharmaceutical manufacturing
• Objectives of NDP


  • Access: Equitable availability and affordability of essential medicines, including traditional medicine
  • Quality: Quality, safety, and efficacy of all medicines
  • Rational Use: The promotion of therapeutically sound and cost-effective use of medicines by health professionals and consumers
  • Production: Stimulus/Increase local production of essential drugs
  • Regulation: Strengthen administrative, legislative, and regulatory controls of importation, procurement, storage, distribution, supply, sale, and use of drugs
  • Drug Discovery and Innovation: Promote pharmaceutical research and development of raw materials for production, compounding, and formulation of pharmaceutical products; Promote research on herbal remedies and integrate those found to be safe and efficacious into the healthcare system
• The goals of the National Drug Policy (NDP) should always be consistent with broader health objectives, and the policy implementation should help achieve those objectives
• The health policy and the level of service provision in a particular country are important determinants of drug policy and define the range of choices and options
• The drug situation also affects the way in which health services are regarded
• Services lose their credibility if there is no adequate supply of good quality drugs, or if these are badly prescribed
• The implementation of an effective drug policy promotes confidence in and use of health services
• In many countries, a large proportion of healthcare spending is on drugs, so health care financing is closely related to drug financing. It is very difficult to implement a health policy without a drug policy
• Essential drugs


  Those that satisfy the needs of the majority of the population and therefore should be available at all times, in adequate amounts in appropriate dosage forms and at a price the individual and the community can afford
• Use of a limited number of carefully selected drugs based on agreed clinical guidelines leads to better supply of drugs, more rational prescribing, and lower costs
• Key Components of National Drug Policy (NDP)

  • Selection of essential drugs
  • Affordability
  • Drug financing
  • Supply systems
  • Regulation and Quality Assurance
  • Rational use
  • Research
  • Human Resource Development
  • Monitoring and Evaluation
• Selection of essential drugs

  The adoption of the essential drugs concept to identify priorities for government involvement in the pharmaceutical sector, and especially for drug supply in the public sector and for reimbursement schemes; Selection mechanisms for traditional and herbal medicines
• Affordability


  • Reduction of drug taxes, tariffs and distribution margins; Pricing policy; Promotion of competition through generic policies, generic substitution, and good procurement practices; Price negotiations, competition through price information, "early workings" of patented drugs for generic manufacturers, and parallel imports
• Drug financing


  Commitment to measures to improve efficiency and reduce waste; Increased government funding for priority diseases, and the poor and disadvantaged; Guidelines for drug donations
• Supply systems


  • Public–private mix in drug supply and distribution systems; Commitment to good pharmaceutical procurement practices in the public sector; Publication of price information on raw materials and finished products; Drug supply systems in acute emergencies; Inventory control, and prevention of theft and waste
• Regulation and Quality Assurance


  The drug regulatory authority (The Food and Drug Administration - FDA) develops and implements most of the legislation and regulations on pharmaceuticals, to ensure the quality, safety and efficacy of drugs, and the accuracy of product information; Commitment to GMP, Inspection, and Law enforcement; Regulation of traditional and herbal medicines; Need and potential for systems of adverse drug reaction monitoring