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Pharmaceuticals account for at least ten percent of the total healthcare expense in every country, and in some countries it can amount to 30 percent or more. Clearly this level of expense is sufficient for professional efforts to contain costs for pharmaceuticals to the lowest acceptable level. Simply stated, that is the invitation for pharmacoeconomic work. Unfortunately, the older method of selecting a drug product based upon the lowest price per bottle or carton no longer is effective, and is actually quite obsolete. That method is referred to as a cost-minimization technique. Today, we know that the costs for physician follow-up for product failures and the expenses of repairing damage done to patients from adverse events must be added in, as well as necessary monitoring or other required laboratory tests. Therefore, one can see how the most expensive drug product from among a group of other drugs in that identical therapeutic category could turn out to be the least costly drug to use on a global perspective. This is where pharmaco-economics makes its contribution.
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