The Economic Impact of Health and the Economics of Healthcare;

the Quality and Cheap Medicines Act of 2008 Mari Zaira L. Lopez ECOMAN . 28 February 2011

Presentation Outline
Definition of healthcare Economic impact of healthcare Healthcare situation in the Philippines Healthcare indication ASEAN 6 Healthcare gaps in the Philippines RA 9502 Quality and Cheap Medicines Act of 2008 Summary, Analysis and Recommendation

Healthcare Industry
Comprises of providers of diagnostic, preventive, remedial, and therapeutic services such as doctors, nurses, hospitals and other private, public and voluntary organizations. It also includes medical equipment, pharmaceutical manufacturers and health

insurance firms.
SOURCE : http://www.businessdictionary.com/definition/health-care-industry.html

Economic Impact of Healthcare

Healthy individual contributes more in the society Total man power of health industry in the Philippines is approximately 12M Medical Tourism Philippines is the #1 exporter of nurses and #2 exporter of doctors worldwide Phil Pharmaceutical Industry is valued at Php116B
SOURCES: http://wiki.answers.com/Q/What_is_the_total_manpower_in_the_health_sector_in_the_Philippines http://www.researchandmarkets.com/reportinfo.asp?report_id=1136921&t=d&cat_id http://findarticles.com/p/news-articles/matin/mi_7968/is_2004_Oct_20/doctors-nurses-plagues-rural-areas/ai_n33818098/

Economic Impact of Healthcare

Philippines percent distribution of family expenditure by expenditure group 2000, 2003 and 2006

SOURCE: http://www.bles.dole.gov.ph/2009%20Publications/2009%20YLS/statistical%20tables/Chapter%2012/Tab12-3.PDF

Economic Impact of Healthcare

Philippines percent distribution of family expenditure by expenditure group 2000, 2003 and 2006

SOURCE: http://www.bles.dole.gov.ph/2009%20Publications/2009%20YLS/statistical%20tables/Chapter%2012/Tab12-3.PDF

Healthcare in the Philippines

SOURCES: http://www.nscb.gov.ph/stats/pnha/2007/totalexpdt.asp

Healthcare in the Philippines

HEALTH FINANCING FLOWS IN THE PHILIPPINES

SOURCE: Healthcare Financing Strategy 2010-2011

Healthcare in the Philippines

SOURCE: Healthcare Financing Strategy 2010-2011

Healthcare in the Philippines

1.645T Philippines budget for 2011 33.3B on health which is approximately 2% of the total budget Managed by DOH and LGUs

SOURCE: http://www.thepoc.net/breaking-news/breaking-stories/9293-aquino-approves-p1645t-2011-budget.html

Healthcare in the Philippines

SOURCE: http://www.asiahealthspace.com/2010/06/22/healthcare-country-profile-the-philippines/

Healthcare in the Philippines

SOURCE: http://www.asiahealthspace.com/2010/06/22/healthcare-country-profile-the-philippines/

Healthcare in the Philippines

SOURCE: http://www.asiahealthspace.com/2010/06/22/healthcare-country-profile-the-philippines/

Healthcare Indicators: Philippines

SOURCE: http://www.asiahealthspace.com/2010/06/22/healthcare-country-profile-the-philippines/

Healthcare ASEAN Countries 2008

PHILIPPINES SINGAPORE THAILAND MALAYSIA VIETNAM INDONESIA

Life Expectancy

70

82

73

73

71

70

Healthcare Spending (% GDP)

Healthcare Spending ($ / head) Doctors (per 1000) Hospital Beds (per 1000)

3.6

3.3

4.3

3.5

2.7

58

1,414

136

344

37

60

1.2 .9

1.6 2.5

.3 2.1

.8 1.8

.6 1.7

.3 .6

SOURCE: http://www.asiahealthspace.com/country%20profiles/

Healthcare in the Philippines

Philippines percent distribution of family expenditure by income (bottom 30% vs upper 70%) by expenditure group 2006 and 2009

SOURCE: http://www.census.gov.ph/data/sectordata/2009/ie0905.pdf

Healthcare in the Philippines

Philippines percent distribution of family expenditure by income (bottom 30% vs upper 70%) by expenditure group 2006 and 2009

SOURCE: http://www.census.gov.ph/data/sectordata/2009/ie0905.pdf

Healthcare in the Philippines

Health expenditure % to GDP is 3.8 which is lower than WHO target of 5%. 60% of Filipinos who die do so without the benefit of health professional attention 46.4% of health expenditure of families goes to drugs and medicine According to WHO, cost of medicines in the Philippines is 2nd highest in ASIA Retail prices of medicines in the Phils is 40% to 70% higher than Indonesia, Malaysia and Thailand PhilHealth provided but has ceiling for medicines and other services
SOURCE: http://www.scribd.com/doc/34248582/Philippine-Situationer-Global-Health-Course-2010 http://www.neda.gov.ph/devpulse/pdf_files/cmb.pdf http://www.up.edu.ph/upforum.php?i=289 World Health Organization. Everybodys Business : Strengthening Health Systems to Improve Health Outcomes : WHOs Framework. Geneva: WHO Press, 2007.

Philippines Healthcare Programs and Policies

Strengthening LGUs / RHUs and Government Hospitals Doctors to the Barrio Botika ng Barangay Medical Tourism PhilHealth Reproductive Health Bill Healthcare Financing Strategy 2010-2020 RA 9502 Universally Accessible and Cheaper Quality Medicines Act of 2008

Quality and Cheap Medicines Act of 2008

RA 9502 Universally Accessible and Cheaper Quality Medicines Act of 2008 Authored by Mar Roxas and signed into bill by PGMA, June 6, 2008 at Sta. Cruz, Laguna Amendments to RA 8293 the Intellectual Property Code, RA 6675 - the generics act of 1988, and RA 5921 - the pharmacy law

Quality and Cheap Medicines Act of 2008

Chapter II Amendments to RA 8293, Intellectual Property Code

Quality and Cheap Medicines Act of 2008

Chapter II Amendments to RA 8293, Intellectual Property Code

Quality and Cheap Medicines Act of 2008

Quality and Cheap Medicines Act of 2008

Quality and Cheap Medicines Act of 2008

Quality and Cheap Medicines Act of 2008

Quality and Cheap Medicines Act of 2008

Section III Drugs and Medicines Price regulation

Quality and Cheap Medicines Act of 2008

Section III Drugs and Medicines Price regulation

Quality and Cheap Medicines Act of 2008

Chapter VI - Amendments to republic act no. 6675, otherwise known as the generics act of 1989

Quality and Cheap Medicines Act of 2008

Chapter VI - Amendments to republic act no. 6675, otherwise known as the generics act of 1989

Quality and Cheap Medicines Act of 2008

Chapter VI - Amendments to republic act no. 6675, otherwise known as the generics act of 1989

Quality and Cheap Medicines Act of 2008

Summary It somehow allows parallel importation Weakens patents and monopoly Regulates prices of commonly used medicines Keep people informed on the availability of generics. Created new business opportunities (generic drugstores and generic companies) Affected most pharmaceutical companies (mergers, buy outs / acquisitions)

Analysis
People get sick

Do nothing

Get medical attention

Faith Healers

Public / Private Licensed practitioner

Lab Exams / Drug Prescription

Lab Exams / Drug Prescription / Hospitalized

Some will buy medicine for few days / look for generics

Buy some of take

home medicines

Recommendations
Let the people aware of the availability of public health programs and institutions Government should try to invest more in vaccination and creating awareness on the importance of it Strengthen government programs for doctors in rural areas where healthcare is poor Education of public healthcare practitioners Maximization of PhilHealth by indigents Availability of diagnostic equipments in Government Hospitals Stricter BFAD regulations to avoid counterfeit drugs and substandard medicines Strengthening the partnership of private and public institutions (hospitals, pharmaceutical companies, non-government organizations and healthcare organizations)

References

RA 9502 - http://www.bfad.gov.ph/ Healthcare definition - http://www.businessdictionary.com/definition/health-care-industry.html http://wiki.answers.com/Q/What_is_the_total_manpower_in_the_health_sector_in_the_Philippin es http://www.researchandmarkets.com/reportinfo.asp?report_id=1136921&t=d&cat_id http://findarticles.com/p/news-articles/matin/mi_7968/is_2004_Oct_20/doctors-nurses-plaguesrural-areas/ai_n33818098/ http://www.bles.dole.gov.ph/2009%20Publications/2009%20YLS/statistical%20tables/Chapter%20 12/Tab12-3.PDF http://www.nscb.gov.ph/stats/pnha/2007/totalexpdt.asp Healthcare Financing Strategy 2010-2011 http://www.thepoc.net/breaking-news/breaking-stories/9293-aquino-approves-p1645t-2011budget.html http://www.asiahealthspace.com/2010/06/22/healthcare-country-profile-the-philippines/ http://www.asiahealthspace.com/country%20profiles http://www.census.gov.ph/data/sectordata/2009/ie0905.pdf http://www.scribd.com/doc/34248582/Philippine-Situationer-Global-Health-Course-2010 http://www.neda.gov.ph/devpulse/pdf_files/cmb.pdf http://www.up.edu.ph/upforum.php?i=289 World Health Organization. Everybodys Business : Strengthening Health Systems to Improve Health Outcomes : WHOs Framework. Geneva: WHO Press, 2007.