Canada's premiers ( the leaders of provincial governments), if
they have any breath left after complaining about Ottawa at their late July
annual meeting, might spare a moment to do something, to reduce health-care
costs. They're all groaning about soaring health budgets,
the fastest-growing component of which are pharmaceutical costs.
41.____________________________________________________________
What to do? Both the Romanow commission and the Kirby committee on
health care-to say nothing of reports from other experts recommended the
creation of a national drug agency. Instead of each province having its own list
of approved drugs, bureaucracy, procedures and limited bargaining power, all
would pool resources, work with Ottawa, and create a national institution.
42.
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But " national" doesn't have to mean that. " National" could mean
interprovincial- provinces combining efforts to create one body.
Either way, one benefit of a "national" organization would be to negotiate
better prices, if possible, with drug manufacturers. Instead of having one
province-or a series of hospitals within a province-negotiate a price for a
given drug on the provincial list, the national agency would negotiate on behalf
of all provinces. Rather than, say, Quebec, negotiating on
behalf of seven million people, the national agency would negotiate on behalf 31
million people. Basic economies suggests the greater the potential consumers,
the higher the likelihood of a better price. 43.
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A small step has been taken in the direction of a national agency with the
creation of the Canadian Co-ordinating Office for Health Technology Assessment,
funded by Ottawa and the provinces. Under it, a Common Drug Review recommends to
provincial lists which new drugs should be included. Predictably and
regrettably, Quebec refused to join. A few premiers are
suspicious of any federal-provincial deal-making. They ( particularly
Quebec and Alberta) just want Ottawa to fork over additional billions with few,
if any, strings attached. That's one reason why the idea of a nationalist hasn't
gone anywhere, while drug costs keep rising fast. 44.
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Premiers love to quote Mr. Romanow's report selectively, especially the
parts about more federal money perhaps they should read what he had to say about
drugs: "A national drug agency would provide governments more influence on
pharmaceutical companies in order to constrain the ever-increasing cost of
drugs. " 45.
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So when the premiers gather in Niagara Falls to assemble their usual
complaint list, they should also get cracking about something in their
jurisdiction that would help their budgets and patients.
A.Quebec's resistance to a national agency is provincialist ideology.
One of the first advocates for national list was a researcher at Laval
University. Quebec's Drug Insurance Fund has seen its costs skyrocket with
annual increases from 14.3 per cent to 26.8 percent !
B.Or they could read Mr. Kirby's report : "The substantial buying power of
such an agency would strengthen the public prescription-drug insurance plans to
negotiate the lowest possible purchase prices from drug companies"
C.What does "national" mean? Roy Romanow and Senator Michael Kirby
recommended a federal-provincial body much like the recently created National
Health Council.
D.The problem is simple and stark: health-care costs have been, are, and
will continue to increase faster than government revenues.
E. According to the Canadian Institute for Health Information,
prescription drug costs have risen since 1997 at twice the rate of overall
heahh-care spending. Part of the increase comes from drugs being used to replace
other kinds of treatments. Part of it arises from new drugs costing more than
older kinds. Part of it is higher prices. F. So, if the
provinces want to run the health-care show, they should prove they can run it,
starting with an interprovincial health list that would end duplication, save
administrative costs, prevent one province from being played off against
another, and bargain for better drug prices. G. Of course
the pharmaceutical companies will scream. They like divided buyers, they can
lobby better that way. They can use the threat of removing jobs from one
province to another. They can hope that, if one province includes a drug on its
list, the pressure will cause others to include it on theirs. They wouldn't like
a national agency, but self- interest would lead them to deal with it.