Factors Affecting Pharmaceutical Expenditure: A Grant Proposal Study

This report investigates the factors contributing to increasing pharmaceutical expenditures, addressing a critical concern in healthcare economics. The study reviews existing literature, identifying key drivers such as growing medicine demand, government policies, and research investments in new drugs. The research aims to analyze these factors, explore their impact on price hikes, and propose strategies for expenditure reduction. The methodology includes a review of previous research, data collection, and the design of a process to decrease overall hospital costs, encompassing not only medicine expenses but also other related costs. Ultimately, the report seeks to encourage policymakers and pharmaceutical companies to implement cost-effective measures in the pharmaceutical sector. Desklib provides access to this assignment and numerous other resources for students.

Running Head: FACTORS AFFECTING PHARMACEUTICAL EXPENDITURE
GRANT PROPOSAL - FACTORS AFFECTING PHARMACEUTICAL EXPENDITURE
Name of the student
Name of the University
Author Note

1FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
Abstract
The increasing price of medicines and hospital cost is a major concern in different countries
around the world. The increasing demand of medical facilities is giving a hike to the price to the
overall medical costs. However, the pharmaceutical sector has been a sector which helped to
keep the healthcare facilities under control till now but the price of medicines are increasing
daily. This is why the medical expenses are increasing making it hard for under developed
countries to provide medicines for everyone. Therefore, following is a Grant Proposal based on
the research done to analyse the factors which are boosting the price of medicines and increasing
the cost of medical bills. A plan is designed to reduce it in the study.

2FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
Table of Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................4
Research aim and objective.............................................................................................................6
Research methodology.....................................................................................................................7
Researching previous work for analysing the parameters...........................................................7
Data collection method for the research......................................................................................8
Designing the data collection and planning the structure..........................................................10
Planning the structure to cop up with the medical expenses.....................................................11
Outcome of the project..................................................................................................................11
Future scope of research in this field.............................................................................................11
Financial budget.............................................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

3FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
Introduction
With the advancement of technology and science, the lifestyle of human beings around
the globe has been changing ever since rapidly (Jakovljevic, 2014). Recent studies indicate that
this has a pivotal role in the ever increasing and changing demand of health care services in cities
and countries everywhere. With the introduction of more complicated diseases and health care
issues the scenarios have changed the demand of better healthcare facilities to flexible ones,
which can be adopted to fight back different physical issues simultaneously. The requirement of
healthcare issues is different for different community and population of different country. This is
the major driving force to implement the changes in the structural parameters and technologies
used in the healthcare systems. Implementation of latest technologies is proving beneficial to
fight back new and immerging types of diseases and health issues (Jakovljevic et al., 2016).
Some are even effective in predicting a condition long before it to happen to the patient based on
different parameters like blood pressure, blood sugar level and others of the patient.
Pharmaceuticals have been a pathfinder in this field. This field of pharmaceuticals cover
up different medicinal solutions for different diseases as well as human body condition. This has
become a very easy and relevant method to provide medical help and preventive and curing
procedure for different diseases even to the most remote corner of the world. Even where it is
impossible to provide the latest medical technology to treat a patient, it is possible to provide
medicines to treat many with least effort of transportation and other risks related to it. However,
the increasing expenditure of medicines and other parts of pharmaceutical processes are
generating many economic problems in different countries. The rising charge of medicines is
making it impossible for people of developing and under-developed country to consider it as the
best way to fight back diseases. In addition to this, the growing cost of transporting medicines to

4FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
different remote corners making the process of providing treatment to everyone troublesome
more and more. This is why; following is a Grant Proposal based on researches done on the
effective game plan to cope up with the issues of increasing expenditure in pharmaceuticals to
meet the demand of providing effective healthcare facility to every remote corner of the world
effectively (Aljunid & Ali Jadoo, 2018). The application will make it easier to understand in the
lights of the research to further investigate and analyse different important factors, which would
play major roles in the increment of expenditure in pharmaceuticals. Based on the research, a
Grant Application would be presented to make sure that a design a structure to cope up with
issue is implemented within the pharmaceutical industry.
Literature review
The improvements in medicines have been a major topic of research for a long time.
Different researchers have been working to provide better treatment in cost effective process
using improved medicines to cope up with the increasing epidemic of different diseases
worldwide. Vogler, Zimmermann & Habl (2013), conducted a research on the role of
pharmaceutical department in fighting diseases in global platform. The result of their study is a
proof of the success of pharmaceutical and medicines in fighting back diseases and different
health conditions. Their report suggested that medicines contributed more than 55 per cent of the
overall contribution of different medical treatment processes to treat different health conditions
in global platform. However, the study lacks to foresee the future of pharmaceutical systems as a
major answer to different immerging diseases due to the ever-increasing expenditure of
medicines. The researchers suggested that a constant survey of the situation is important to keep
an eye on the increasing demand of the medical treatment processes utilized to fight back health
issues. In addition to this, they have shown how the sales of prescribed medicine has increased

5FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
giving a hike to the overall medical expenses and making a huge profit for the pharmacy
companies. The researchers in their study have also shown that immerging of new diseases is
another reason of the increasing cost of the medicines. The pharmaceutical companies are
investing in research of new medicines for different immerging diseases to fight back the
epidemic of disease. The fund the researches the companies are increasing the price of the
medicines which is giving a hick to the overall price of the pharmaceutical system.
Mousnad, Shafie & Ibrahim (2014), had researched on the increasing expenditure of
pharmaceuticals and the impact of it on the economy of different countries. With the changing
lifestyle of people in different countries people are growing more dependent on medicines to
fight back health issues than looking for alternative solutions like habituating better lifestyle,
doing exercise regularly and avoiding fast food and soda. With the growing cost of medicines,
the cost of treatments and medical facilities are increasing. This is affecting all the countries in
same manor. Whether it is a developed country like America or a developing country like Nepal
the condition is same. This is boosting different economic issues and decrement in the savings of
every individual. The results are affecting the pharmaceutical sector rapidly. However, the
researchers did not study the factors, which are the reasons of this situation. The researchers have
suggested some ways to cope up with it but without analysing the effecting parameters
implementing those ways are not effective at all. In their report, they have also clearly identified
how the increasing demand of medicine is growing pressure on the pharmaceutical companies to
meet the requirements of global healthcare services and compromising in the quality and
quantity of the medicines. This is has been another important parameter to add up with the price
of the medicines.

6FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
Schumock (2016), with his team researched on different processes and policies of
governments of different countries and the pharmacy companies are affecting the quality of
medicines in different countries. The researchers have also shown that these are major factors,
which affect the overall pharmaceutical expenditure in global platform.
Maniadakis (2016), has identified another parameter, which is adding up to the price of
the medicines. The increasing dependency on the medicine quantity and drug therapy is a reason
the team identified as a major factor to add up to the cost of the medicinal system. Aljunid & Ali
(2018), have again focused on all the parameters discussed in the previous research works to
identify the reason of increasing expenditure in pharmaceutical sectors. They have reasoned the
fact that these parameters are however, the main reason, which is why the pharmacy companies
are forced to implement such policies to increase the price of medicines to cope up with the
increasing demand of medicines and global economic hike.
Research aim and objective
From the above mentioned research work it is evident that no research has been
conducted to construct a plan to cope with the price hike in the pharmaceutical sector. Proper
research has been conducted on the parameters, which are giving a rise to the expenditure, and
how they are effecting but not how to reduce it. It can be said that this research is first of its kind
as it thoroughly analyses the reasons of price hike and structures a plan to cope up with it
eventually. The objectives of this research are as follows.
 To find relevant reasons which play major roles in increasing expenditure in the
pharmaceutical sector
 Analysing how they are affecting the price hike.

7FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
 Identifying the parameters, which can be used to reduce the expenditure
 Structuring an overall process, implementing which can help in reducing the overall
expenditure
 Identify the process to reduce the overall hospital expenses.
 To encourage the policy makers of pharmaceutical companies and government to focus
on such methods to decrease the overall cost in the pharmaceutical sector.
Research methodology
Based on the objectives of this research, the methodology implemented by the
researchers is divided into three major parts. The first part comprises study of previous
researches carried out in this field to analysis different aspects adding up to the increasing
expenditure. This step is also important to analyse previous works carried out by researchers to
determine the aim and objective of this research (Schumock et al., 2016). The second part is data
collection method, which is important to support the process proposal of decreasing hospital
cost. The third part is the designing of the process to decrease the overall price of hospital cost.
Hospital expense necessarily does not mean the medicine system only. It includes other expenses
like the expenses for doctors and nurses and many others.
Researching previous work for analysing the parameters
To do this the researchers have to do through almost all the previous research works and
papers, which are dealing with the pharmaceutical sector and especially the price hike in this
field in recent times (DiMasi, Grabowski & Hansen, 2016). The research of previous work on
growing expenditure in pharmaceutical sector identifies some major reasons, which have huge
impact on the price hike in pharmaceutical sector. However, no research has been conducted to
figure out a strategy to cope up with the price hike. Researches in the past decade have identified

8FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
different reasons to be the major parameters, which are giving hike to the price of the medicines
(Stabile et al., 2013). Among those, the growing dependency on medicines more than alternative
treatment processes is a major reason. The growing demand of medicines is boosting the
tendency of the pharmacy companies to compromise with the volume and quality of the
medicine which is why the price of the medicines are increasing rapidly in different parts of the
world. This is because the companies are facing huge problem to provide medicine to the most
remote corner of the world. The second most important parameter are the different policies of the
government of different countries and companies as these are effecting the financial growth of
the pharmacy companies which have branches in different countries. They have to work as per
the policies applicable by the local governments to meet the medical requirements of the specific
country to change the cost for medicines (Vogler, 2012). Another major reason, which is giving
hike to the cost of medicine, is the growing tendency of the pharmaceutical companies to invest
in research on medicines for immerging diseases like Ebola and others. Every now and then,
there is a new virus or new disease emerging to start an epidemic in any part of the world
(Petrou, 2014) The pharmaceutical companies are investigating for the way outs to stop these
epidemics. The companies fund investments in such researches and the companies are deriving
the cost by simply increasing the cost of the medicines. Overall, the expenditure hike in the
pharmaceutical field is increasing economic expenditure of the pharmaceutical sector of any
country.
Data collection method for the research
To perform this research the researchers do not need to perform any survey or interview.
No primary source of data is required, as the research does not require any survey to conclude it.
The aim of this research is to investigate available information available from different

9FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
secondary sources especially from previous researches to support different parameters, which
add up to the expenditure of the pharmaceutical sector (Carone, Schwierz & Xavier, 2012). To
perform this, the researchers used sources like books and research journals from different
sources, which work on deal with the same field of pharmaceutical sectors. The researchers used
sources like Google scholar, Medicine, CINAHL, PubMed to gather data on previous research
works. The researchers typically used researches published within the time-period of 2012 to
2018. Focusing on this frame of time is because during this time the expenditure in
pharmaceutical sector has been increasing rapidly any many researches has been carried out to
identify the reasons of this. Choosing articles and research papers for this project are based on
different criterion set by the researches. The criterion for research papers and articles are as
follows (Naci, Carter & Mossialos, 2015).
 Articles, which are dealing with potential parameters which add up to the increment in
the expenditure in pharmaceutical sector or the trends of medicine expenses or health
care cost to increase the pharmaceutical demands are considered to be prioritized first.
 Articles and papers, which are fully available for the research and study, are considered,
as partial papers are not relevant to any research work.
 As English is the global language of communication, research papers, which are
published in this language, are the first priority for the researchers (Mladovsky et al.,
2012).
 The articles and research papers, which are published within the time-period of 2012 to
2018, are used for this research. This period indicates the current research trends and
most effective reasons to give a hike to the recent pharmaceutical sector (Economou et
al., 2015).

10FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
Data collected from the Databases about the factors
those lead to increased pharmaceutical
expenditures (n=125)
Data Screened for inclusion criteria (n=100)
Data after removing the duplicates (n=35) Data from full text articles matching all the
inclusion criteria (n=5)
The Data includes 2 systematic reviews and 3 retrospective
studies
 The structure of the research articles and papers used in this research should study design,
sample size, representation, methodology and supporting results to support the research.
 The literatures of different papers have been chosen based on their peer reviews
Designing the data collection and planning the structure
To perform the data collection to structure the plan to cope up with increasing
expenditure a data flow structure is designed by the researchers to analyse the collected
information and design the structure. The flow chart is given as follows.
Total 125 sources were used initially to collect data among which 35 sources are
shortlisted after thorough review and research for this process based on which the research is
performed.
Figure 1: the flow chart of the data collection method

11FACTORS AFFECTING PHARMACEUTICAL EXPENDITURES
Planning the structure to cop up with the medical expenses
From data collection for research it is evident that the company policies and government
policies play a huge role in decreasing the overall expenses in pharmaceutical sectors
(Jakovljevic et al., 2014). In most of the cases, the companies use same generic codes of
chemicals to design a specific medicine, which is same for everywhere. However, the volume of
medicine differs for different countries, which is why the price varies. In case the companies
manufacture medicines based on the generic codes globally then the price could be reduced
affecting the expenditure. On top of that, a better government policy to support the national
medical policies is important to cope up the price of hospital expenses for different country.
While sorting different methods to cope with the expenditure such plans have evolved from the
study.
Outcome of the project
The research is done to design a plan work to reduce the overall price of medical bills and
the designs for several outcomes which are helpful to reduce the price. For example, improved
government policies and company policies on generic medicines, reducing bills in related sectors
of hospital expenses to reduce the bill can be taken into consideration (Fortune & Shelton, 2012).
However, all these are theoretical outcomes. The practical result can only be achieved only if the
plan is implemented in practical. This is done only by using collaboration with a pharmaceutical
company.
Future scope of research in this field
The study has been identified as a major step to contribute in designing a plan to cop up
with the increasing expenditure in pharmaceutical sector (Yip et al., 2012). The study will