Projecting future drug expenditures - 2003

Nilay D Shah, James M. Hoffman, Lee C. Vermeulen, Robert J. Hunkler, Karrie M. Hontz

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

Drug expenditure projections for 2003 and factors likely to influence drug costs are discussed. The United States continues to face the challenge of increased growth in health expenditures, and drug expenditures are continuing to increase faster than the growth in total health care expenditures. These increases can be largely attributed to an increase in the average age of the U.S. population and technological advancement. On the basis of price inflation and non-price inflationary factors, including increases in volume, shifts in patient and therapeutic intensity, and expected approval of new drugs, a 10-12% increase in drug expenditures in 2003 for the inpatient setting and a 13.5-15.5% increase for ambulatory care settings are forecasted. While few new drugs are expected to greatly influence expenditures in 2003, the continued diffusion of recently approved drugs such as drotrecogin alfa and nesiritide will have a dramatic impact on total drug expenditures and must be carefully considered in the budgeting process. An agent likely to have a significant impact on HIV treatment is enfuvirtide, the first in a new class of antiretrovirals (fusion inhibitors), but its high cost ($10,000-$15,000 per year) may limit patients' access to this medication. An expanded user's guide is provided to assist the reader in appropriate application of this information in the drug budgeting process. Technological, demographic, and market-based changes and changes in public policy will continue to influence pharmaceutical expenditures in the coming year. An understanding of the overall drivers of medication expenditures and vigilance in monitoring pharmaceutical innovation are critical in the effective management of these resources.

Original languageEnglish (US)
Pages (from-to)137-149
Number of pages13
JournalAmerican Journal of Health-System Pharmacy
Volume60
Issue number2
StatePublished - Jan 15 2003
Externally publishedYes

Fingerprint

Health Expenditures
Pharmaceutical Preparations
Drug Approval
Drug Costs
Brain Natriuretic Peptide
Economic Inflation
Public Policy
Ambulatory Care
Growth
Inpatients
Demography
HIV
Delivery of Health Care
Costs and Cost Analysis
Therapeutics

Keywords

  • Ambulatory care
  • Antiinflammatory agents
  • Antiretroviral agents
  • Budgets
  • Cardiac drugs
  • Costs
  • Drotrecogin alfa
  • Drug use
  • Drugs
  • Economics
  • Enfuvirtid
  • Health care
  • HIV infections
  • Hospitals
  • Nesiritide
  • Prescriptions
  • Pricing

ASJC Scopus subject areas

  • Pharmaceutical Science
  • Leadership and Management

Cite this

Shah, N. D., Hoffman, J. M., Vermeulen, L. C., Hunkler, R. J., & Hontz, K. M. (2003). Projecting future drug expenditures - 2003. American Journal of Health-System Pharmacy, 60(2), 137-149.

Projecting future drug expenditures - 2003. / Shah, Nilay D; Hoffman, James M.; Vermeulen, Lee C.; Hunkler, Robert J.; Hontz, Karrie M.

In: American Journal of Health-System Pharmacy, Vol. 60, No. 2, 15.01.2003, p. 137-149.

Research output: Contribution to journalArticle

Shah, ND, Hoffman, JM, Vermeulen, LC, Hunkler, RJ & Hontz, KM 2003, 'Projecting future drug expenditures - 2003', American Journal of Health-System Pharmacy, vol. 60, no. 2, pp. 137-149.
Shah ND, Hoffman JM, Vermeulen LC, Hunkler RJ, Hontz KM. Projecting future drug expenditures - 2003. American Journal of Health-System Pharmacy. 2003 Jan 15;60(2):137-149.
Shah, Nilay D ; Hoffman, James M. ; Vermeulen, Lee C. ; Hunkler, Robert J. ; Hontz, Karrie M. / Projecting future drug expenditures - 2003. In: American Journal of Health-System Pharmacy. 2003 ; Vol. 60, No. 2. pp. 137-149.
@article{3db21fd7a48e4aebb25d4363475053ea,
title = "Projecting future drug expenditures - 2003",
abstract = "Drug expenditure projections for 2003 and factors likely to influence drug costs are discussed. The United States continues to face the challenge of increased growth in health expenditures, and drug expenditures are continuing to increase faster than the growth in total health care expenditures. These increases can be largely attributed to an increase in the average age of the U.S. population and technological advancement. On the basis of price inflation and non-price inflationary factors, including increases in volume, shifts in patient and therapeutic intensity, and expected approval of new drugs, a 10-12{\%} increase in drug expenditures in 2003 for the inpatient setting and a 13.5-15.5{\%} increase for ambulatory care settings are forecasted. While few new drugs are expected to greatly influence expenditures in 2003, the continued diffusion of recently approved drugs such as drotrecogin alfa and nesiritide will have a dramatic impact on total drug expenditures and must be carefully considered in the budgeting process. An agent likely to have a significant impact on HIV treatment is enfuvirtide, the first in a new class of antiretrovirals (fusion inhibitors), but its high cost ($10,000-$15,000 per year) may limit patients' access to this medication. An expanded user's guide is provided to assist the reader in appropriate application of this information in the drug budgeting process. Technological, demographic, and market-based changes and changes in public policy will continue to influence pharmaceutical expenditures in the coming year. An understanding of the overall drivers of medication expenditures and vigilance in monitoring pharmaceutical innovation are critical in the effective management of these resources.",
keywords = "Ambulatory care, Antiinflammatory agents, Antiretroviral agents, Budgets, Cardiac drugs, Costs, Drotrecogin alfa, Drug use, Drugs, Economics, Enfuvirtid, Health care, HIV infections, Hospitals, Nesiritide, Prescriptions, Pricing",
author = "Shah, {Nilay D} and Hoffman, {James M.} and Vermeulen, {Lee C.} and Hunkler, {Robert J.} and Hontz, {Karrie M.}",
year = "2003",
month = "1",
day = "15",
language = "English (US)",
volume = "60",
pages = "137--149",
journal = "American Journal of Health-System Pharmacy",
issn = "1079-2082",
publisher = "American Society of Health-Systems Pharmacy",
number = "2",

}

TY - JOUR

T1 - Projecting future drug expenditures - 2003

AU - Shah, Nilay D

AU - Hoffman, James M.

AU - Vermeulen, Lee C.

AU - Hunkler, Robert J.

AU - Hontz, Karrie M.

PY - 2003/1/15

Y1 - 2003/1/15

N2 - Drug expenditure projections for 2003 and factors likely to influence drug costs are discussed. The United States continues to face the challenge of increased growth in health expenditures, and drug expenditures are continuing to increase faster than the growth in total health care expenditures. These increases can be largely attributed to an increase in the average age of the U.S. population and technological advancement. On the basis of price inflation and non-price inflationary factors, including increases in volume, shifts in patient and therapeutic intensity, and expected approval of new drugs, a 10-12% increase in drug expenditures in 2003 for the inpatient setting and a 13.5-15.5% increase for ambulatory care settings are forecasted. While few new drugs are expected to greatly influence expenditures in 2003, the continued diffusion of recently approved drugs such as drotrecogin alfa and nesiritide will have a dramatic impact on total drug expenditures and must be carefully considered in the budgeting process. An agent likely to have a significant impact on HIV treatment is enfuvirtide, the first in a new class of antiretrovirals (fusion inhibitors), but its high cost ($10,000-$15,000 per year) may limit patients' access to this medication. An expanded user's guide is provided to assist the reader in appropriate application of this information in the drug budgeting process. Technological, demographic, and market-based changes and changes in public policy will continue to influence pharmaceutical expenditures in the coming year. An understanding of the overall drivers of medication expenditures and vigilance in monitoring pharmaceutical innovation are critical in the effective management of these resources.

AB - Drug expenditure projections for 2003 and factors likely to influence drug costs are discussed. The United States continues to face the challenge of increased growth in health expenditures, and drug expenditures are continuing to increase faster than the growth in total health care expenditures. These increases can be largely attributed to an increase in the average age of the U.S. population and technological advancement. On the basis of price inflation and non-price inflationary factors, including increases in volume, shifts in patient and therapeutic intensity, and expected approval of new drugs, a 10-12% increase in drug expenditures in 2003 for the inpatient setting and a 13.5-15.5% increase for ambulatory care settings are forecasted. While few new drugs are expected to greatly influence expenditures in 2003, the continued diffusion of recently approved drugs such as drotrecogin alfa and nesiritide will have a dramatic impact on total drug expenditures and must be carefully considered in the budgeting process. An agent likely to have a significant impact on HIV treatment is enfuvirtide, the first in a new class of antiretrovirals (fusion inhibitors), but its high cost ($10,000-$15,000 per year) may limit patients' access to this medication. An expanded user's guide is provided to assist the reader in appropriate application of this information in the drug budgeting process. Technological, demographic, and market-based changes and changes in public policy will continue to influence pharmaceutical expenditures in the coming year. An understanding of the overall drivers of medication expenditures and vigilance in monitoring pharmaceutical innovation are critical in the effective management of these resources.

KW - Ambulatory care

KW - Antiinflammatory agents

KW - Antiretroviral agents

KW - Budgets

KW - Cardiac drugs

KW - Costs

KW - Drotrecogin alfa

KW - Drug use

KW - Drugs

KW - Economics

KW - Enfuvirtid

KW - Health care

KW - HIV infections

KW - Hospitals

KW - Nesiritide

KW - Prescriptions

KW - Pricing

UR - http://www.scopus.com/inward/record.url?scp=0242416916&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0242416916&partnerID=8YFLogxK

M3 - Article

C2 - 12561658

AN - SCOPUS:0242416916

VL - 60

SP - 137

EP - 149

JO - American Journal of Health-System Pharmacy

JF - American Journal of Health-System Pharmacy

SN - 1079-2082

IS - 2

ER -