This report uses the experience of Ontario to better understand the impact of pharmaceutical innovation on health care costs and on other costs of disease borne by society such as productivity losses due to disease.
Reducing the Health Care and Societal Costs of Disease: The Role of Pharmaceuticals
Reducing the Health Care and Societal Costs of Disease: The Role of Pharmaceuticals
Health and Healthcare
Technology and Innovation Analysis
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The report finds that the added costs associated with pharmaceutical innovation were offset by reductions in health care resources and productivity losses associated with disease. In particular, the $1.22 billion spent on six classes of pharmaceutical drugs in 2012 generated offsetting health and societal benefits of nearly $2.44 billion.
Under a baseline projection of pharmaceutical demand over 2013–2030, all six classes of drugs examined provide health and societal benefits in excess of the estimated costs of treatment, with the ratio of benefits to costs increasing over the longer term.
By increasing patient compliance, overall health and societal benefits of patients using pharmaceutical therapy would increase. Likewise, over the longer term, new pharmaceutical innovation is projected to deliver health and societal benefits that outweigh the added costs associated with prescribing the new drugs.
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