View metadata

dc.titleWhat is the Opportunity Cost of Financing High-Cost Drugs? The Case of Colombia
dc.contributor.authorGutiérrez, Catalina
dc.contributor.authorPalacio, Santiago
dc.contributor.authorGiedion, Úrsula
dc.contributor.authorOllendorf, Daniel
dc.contributor.orgunitSocial Protection and Health Division
dc.coverageColombia
dc.date.available2023-09-22T17:09:30
dc.date.issue2023-09-22T00:09:00
dc.description.abstractWe find ourselves in a fortunate yet challenging situation: we have access to more beneficial health technologies than we can afford to finance. However, this increased availability, coupled with an ageing population and epidemiological changes, is straining health spending worldwide. To ensure that higher spending actually maximizes benefits, it is crucial for this growth to be sustainable, to not divert resources from other important investments and to be in line with the goals of the health system. Given limited resources, allocating funds to one technology means forgoing allocation to others. Like many Latin American countries, Colombia grapples with the financial burden of covering high-cost drugssome of which are highly-effective, while others show reduced clinical effectiveness. Each of these drugs carries an opportunity cost in terms of the health gains lost by allocating these resources elsewhere. To achieve this, we analyzed ten drugs selected based on their significant budgetary impact or high cost per case. These drugs were oncologic, for autoimmune and orphan diseases, and one for diabetes. In Colombia, financing these drugs instead of the best available alternatives results in an additional cost of US$453 million for the duration of treatments for all current recipients. The quality adjusted life years (QALY) provided by these technologies average (per patient and for the duration of the treatments) is less than a year of perfect health (0.73 QALY). Alternatively, if these resources were redirected to expand and enhance existing health system services, the net gain would amount to 88,000 life years in perfect health. In other words, defunding certain services to finance the ten selected high-cost drugs would result in Colombians losing 88,000 life years of perfect health. In this article, we aim to quantify the opportunity cost of financing high-cost drugs in Colombia.
dc.format.extent35
dc.identifier.doihttp://dx.doi.org/10.18235/0005156
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/What-is-the-Opportunity-Cost-of-Financing-High-Cost-Drugs-The-Case-of-Colombia.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Cual-es-el-costo-de-oportunidad-de-financiar-medicamentos-de-alto-costo-el-caso-de-Colombia.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.relation.seriesCriteria Network
dc.subjectHealth
dc.subjectHealth Expenditure
dc.subjectFinance
dc.subjectDelivery of Health Care
dc.subjectScience and Technology
dc.subjectDisease
dc.subjectDebtor Finance
dc.subjectMedicines Pricing
dc.subjectInvestment
dc.subject.jelcodeH10 - Structure and Scope of Government: General
dc.subject.jelcodeH11 - Structure, Scope, and Performance of Government
dc.subject.jelcodeH21 - Efficiency • Optimal Taxation
dc.subject.jelcodeH30 - Fiscal Policies and Behavior of Economic Agents: General
dc.subject.jelcodeH51 - Government Expenditures and Health
dc.subject.jelcodeH61 - Budget • Budget Systems
dc.subject.jelcodeI10 - Health: General
dc.subject.keywordsHealth Spending;public health spending;medicines;pricing;priority setting;pharmaceutical policies;pharmaceuticals;Procurement;Policies;efficiency;Spending;Prioritization;resources;health;generic drugs;healthy living;Cost-Effectiveness
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02786
idb.operationRG-E1819
Return to Publication