who medicines strategy - libdoc.who.int - World Health Organization

who medicines strategy - libdoc.who.int - World Health Organization who medicines strategy - libdoc.who.int - World Health Organization

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WHO MEDICINES STRATEGY 2004-2007 | 60Figure 15:Per capita spending on pharmaceuticals by main source, 1990and 2000, by country income groups400350300250A World – 1990B World – 2000C Low – 1990D Low – 2000E Middle – 1990F Middle – 2000G High – 1990H High – 2000US$200150PrivateGovernment100500A B C D E F G HSource: WHO National Health Accounts DatabaseEO 3.2Public funding of medicinesincreased through increasedorganizational capacity toimplement sustainable drugfinancing strategies and systemsRationaleIn many countries today, private out-of-pocketspending on medicines is the largest componentof household spending on health. In manylow-income countries in particular, private outof-pocketspending accounts for 50%-90% ofpharmaceutical sales. (Figure 15) During the1990s, the private share of global expenditure onmedicines increased 23 . Yet governments have theresponsibility to ensure that medicine financingmechanisms are established and managed in sucha way as to achieve equitable access to essentialmedicines.While health financing reform should improvethe use of public resources, it should not beaimed at reducing public spending on health andmedicines 24 . Market-oriented reform policies arenot geared to protecting the needs of the poorestpeople and, without public financial support, thepoor may be denied access to medicines. There isa critical need to assess the effect of user chargesfor medicines in the public sector, in particulartheir impact on public health objectives.ProgressRecent progress in increasing public fundingof medicines has been inadequate due to thewidespread emphasis on health sector reform.However, all WHO regions have identifiedmedicines financing among their priorities andWHO has provided technical support in severalcountries. In SEARO, for example, WHO supportedthe appraisal of new financing options such asrevolving funds or social insurance coverage. Muchof the recent focus in medicines financing has beenon the mobilization of additional funding resourcesinternationally, through the Global Fund and theCommission on Macroeconomics and Health. Inaddition, WHO input to the Millennium Projecthas stressed the importance of rethinking domesticmedicine financing strategies, in particular therole of user charges, and of ensuring that nationalEssential Medicines Lists are recognized as astatement of resource needs for public medicinesfinancing. In recent years, WHO has developedtechnical material on health financing generally andon medicines financing in particular. 25

COMPONENTS OF THE STRATEGY | 61Meeting the challenges 2004-2007Over the next four years WHO will:> launch an evidence-based consultativeapproach to national medicines financing,involving different stakeholders.> develop medicine financing assessments toprovide guidance for adaptation and use indifferent country settings.> identify short- and medium-termfinancing strategies to achieve measurableimprovements in access, on the basis ofapproaches that have been shown to work.Challenges remaining> publish and disseminate case studies andguidelines.Medicines financing is in crisis in many countries.Policy advice from international agencies inthe last two decades has stressed the need for areduced role for the public sector and a greaterreliance on private financing and provision, andtrends in pharmaceutical spending confirm thatthis has occurred. WHO estimates that almost2 billion people are currently without accessto essential medicines — a number that doesnot appear to have declined since 1987. Manycountries need to re-affirm that finance for thepurchase of essential medicines for the poor anddisadvantaged and for diseases with a majorpublic health impact is a public responsibility,and to find effective ways of integrating privatemedicine providers into public health policy.OUTCOME INDICATORS1999 2003 2007No. of countries with public spending on medicines belowUS$2 per person per year#REPORTING % TARGET#REPORTING % TARGET38/103 37% 35% 24/80 30% 20%

COMPONENTS OF THE STRATEGY | 61Meeting the challenges 2004-2007Over the next four years WHO will:> launch an evidence-based consultativeapproach to national <strong>medicines</strong> financing,involving different stakeholders.> develop medicine financing assessments toprovide guidance for adaptation and use indifferent country settings.> identify short- and medium-termfinancing strategies to achieve measurableimprovements in access, on the basis ofapproaches that have been shown to work.Challenges remaining> publish and disseminate case studies andguidelines.Medicines financing is in crisis in many countries.Policy advice from <strong>int</strong>ernational agencies <strong>int</strong>he last two decades has stressed the need for areduced role for the public sector and a greaterreliance on private financing and provision, andtrends in pharmaceutical spending confirm thatthis has occurred. WHO estimates that almost2 billion people are currently without accessto essential <strong>medicines</strong> — a number that doesnot appear to have declined since 1987. Manycountries need to re-affirm that finance for thepurchase of essential <strong>medicines</strong> for the poor anddisadvantaged and for diseases with a majorpublic health impact is a public responsibility,and to find effective ways of <strong>int</strong>egrating privatemedicine providers <strong>int</strong>o public health policy.OUTCOME INDICATORS1999 2003 2007No. of countries with public spending on <strong>medicines</strong> belowUS$2 per person per year#REPORTING % TARGET#REPORTING % TARGET38/103 37% 35% 24/80 30% 20%

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