Healthcare Financial Management: Assignment
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Added on 2021-04-24
Healthcare Financial Management: Assignment
Added on 2021-04-24
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HEALTH FINANCIAL MANAGEMENTStudent Name –Student ID - 1
Table of ContentsExecutive summary.................................................................................................3Introduction............................................................................................................4General discussion of issue.....................................................................................4Exploring Issue........................................................................................................7Conclusion............................................................................................................10References............................................................................................................112
Executive summaryAustralian Pharmaceutical Benefits Scheme is a medical scheme by the Australian government to provide affordable, protective and effective medicines to people. This scheme is a 50 years old scheme functional since World War 1st. The PBS scheme is working efficiently to fulfil its objective yet there has been a huge escalation in the expenditure of PBS from last few decades. The rise in PBS expenditure has lead to financial burdens on the Australian economy. From 1991 to 2002 there has been more than $3 billion rises in expenditure followed by 6% yearly rise from 2010-2011. The cost of prescription drugs is very high in Australia where the government pays almost 80% of the cost portion. The statistical studies indicate that Australian pharmaceutical prices were lower from USA, UK and other countries till 19th century but in recent statistics (2011) there is a huge increase in Australian medicine expenditure compared to other countries. The issues leading to growth in PBS expenditure involves improper medication management, no expert decision-making team and improper pharmacy agreements lead to increase in PBS cost. There are certain changes required in PBS system to overcome the extra growing expenditure rate. These changes involve properexpert panel to make decisions, managing medicine listing, pricing and subsidiaries aswell as creating customer awareness. These recommendations can help to get a control over growing expenditure and better functionality of Pharmaceutical Benefits Scheme. 3
Introduction The primary objective of Australian government healthcare system is to provide affordable, protective and clinically effective medications to Australian people ensuring taxpayers money value. The Australian Pharmaceutical Benefits Scheme (PBS) plays an important role in achieving this objective as an essential part of the healthcare system in Australia. PBS is operational from more than 50years in Australia (part of National Medicines Policy) providing lifesaving essential medicinesat affordable rates to the public (Biggs, 2018). However, critical observations indicatea huge escalation in subsidised medicine cost in Australia leading to the essentiality ofreviewing the PBS structure (Duckett et al. 2013). This study is a critical analysis report on Australian Pharmaceutical Benefits Scheme involving a study on its general background, statistics, processes and issues todetect the possible reason behind increasing cost of PBS. Further, report involves certain options to get a control over this growing cost of PBS expenditures and pharmaceutical prices. General discussion of issue Functional since 1919, PBS is working to provide subsidised medicine to sufferers of World War 1 to Australian people of 21st century. This scheme involves a list of prescribed medicines that are provided to the patient at government-subsidised cost (9.4 The Pharmaceutical Benefits Scheme, 2018).The cost of prescription drugs in Australia is very high that involves minimum $1.3 billion/year or $3.5 million/day covering 14% budget of PBS (Mellish et al. 2015). According to Blanch, Pearson & Haber (2014) studies only one drug named atorvastatin cost around $700 million/year to the Australian government and the individual patient. Australian PBS pays $51/30tablet box whereas New Zealand scheme pays only $5.80/90tablets box of 40mg atorvastatin. This example indicates a critical abnormality in the financial management system of pharmaceutical benefits scheme of Australia. The below-provided table demonstrates expenditure on PBS by commonwealth since 1991 (Mellish et al. 2015).Date (to June)Expenditure on PBS1991-92$1.11 billion4
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