Todor Fimkov, MD, MBA

Despite widely spread arguments regarding urgent need for implementation of cost-containment efforts by NHIF and other financing parties, the problem of hospitals’ purchasing practices for medications stays in shade. There is, however a simple method for internal cost containment that could be realized by the hospital itself. Using data from IMS and utilizing simple common sense logic, we can speculate that hospitals still can realize about 4 to 6% saving from their expense budget. The prime question here should be – are all brand medication innovative? Quick review of facts shows that not all brand medication are innovative (they do not expand current therapeutic width, they do not significantly improve quality of life etc.), but hospitals tend to spend more on them. No doubt, 6% saving will not substitute for the fresh capital needed by hospitals, but could optimize the way hospital entities handle their medication purchasing practices. Furthermore – utilizing more generic medication will make the healthcare services and medications more accessible.

Key words: generic drugs, hospital treatment, accessibility, hospital market, market segmentation, market dynamics