Reforming pharmaceutical usage in public health

Pharmaceuticals account for 10 to 30% of public spending for health in most countries. Very large savings can be achieved by improving the selection and quantification of drug requirements.

Governments that have introduced competition in the procurement of drugs have typically achieved savings of 40 to 60%. This is aided by developing using national essential drug lists, consisting of a limited number of inexpensive drugs that address the important health problems of the population, and developing country-specific treatment protocols. An essential-drugs revolving fund for several Central American nations yielded savings of 65% of the costs of the pharmaceuticals.