Healthcare systems across middle- and high-income countries are strained.
Ageing populations, rising chronic disease, and rapid advances in medical technology are increasing demand for care and novel treatments, while public finances remain under pressure.
Policy debates have increasingly focused on headline targets for spending on healthcare and pharmaceuticals, but less attention has been paid to a more fundamental issue: what level of healthcare and pharmaceutical spending is justified, and why?
This CRA report, commissioned by a large pharmaceutical firm, and completed in partnership with Professor Margaret Kyle of Mines Paris – PSL, addresses that issue by developing an evidence-based framework to understand how healthcare and pharmaceutical spending can be aligned with country-specific health needs, innovation, and broader economic objectives.
An illustrative application to the United Kingdom demonstrates how the framework can be used to:
- Align healthcare and pharmaceutical spending with population health needs
- Determine incremental investments needed to stimulate healthcare and pharmaceutical innovation
- Identify gaps between current spending and levels that would progress toward these aims
Overall, this report provides a foundation for policymakers on how to evaluate spending levels while considering broader healthcare and policy objectives, and how countries can identify opportunities to allocate scarce financial resources more effectively.
