Financing pharmaceutical care in the netherlands
Table of contents
1. A short introduction to the Dutch Healthcare system:
• Financing streams within the healthcare system • Contracting process between pharmacies and insurance companies
A brief overview
• Examples of contracting • Pros and cons of the Dutch healthcare system in from a pharmacist
2. Official tasks of a pharmacist by law:
• Performance descriptions
Chris Prins, B.Sc
3. Financing pharmaceutical services:
Utrecht University,
• Negotiations between pharmacies and insurance companies
Syreon Research Institute
• Examples of negotiations
• Medical Treatment Agreement Act
1. A short introduction to the
Financing streams in the Dutch Healthcare System
Dutch Healthcare system
EXPENDITURE
FINANCING
EXPENDITURE PER ADULT
EACH YEAR
Other €7 Billion
Other €7 Billion
Individual contributions €2billion
Taxes (VAT, etc)
€1186,-
Col ected by government €17
Long Term Care contribution
through income
€ 1029,-
Government contribution €3Bil ion
Own Risk €3 Bil ion
Own Risk
€ 369,-
Paid individual premiums
Paid premiums to insurance
companies
€ 1211,-
Employee contribution
Employee contribution
€ 1577,-
Allowance for low income
- € 297,-
Total €70 Billion
Total €70 Billion each year
Total €5075,- each year
(official budget owner)
An insurance company
should theoratical y contract
every pharmacy, in order to
have geographically
coverage of its patients.
Example of contracting
The insurance company was
In a relatively rural area in the Netherlands, there is only 1 pharmacy for approximately 40.000 patients.
The court stated that the pharmacy was in a
This pharmacy recognized he had some negotiating power.
monopoly position and therefore he could not reject
An insurance company with 40% marketshare does not
the contract proposed by the insurance company
want 16.000 patients to not have access to medicine! The pharmacist did not want to sign the contract because prices for services were too low. The insurance company took this case to court …
Each pharmacy needs to buy up to
a maximum of 16 different products
of 4 active substances when dealing
with 4 insurance companies!
4 active substances with set dosage and 4
insurance companies:
Up to 16 different products
GENERIC PREFERENCE PRICING POLICY
Stabilization of pharmaceutical
expenditure in public pharmacies
Drug shortages in the last 10 years
- Generic medicine prices tend to be lower,
- Every half year the generic brand can change,
because of bigger purchasing parties.
causing confusion among patients.
(Insurance companies vs Pharmacies)
- Pharmacists have to explain the brand
- Stabilization of pharmaceutical expenditure in switching, not the insurance companies!
public pharmacies
- Pharmacist hardly make any profit on the drug
anymore. - Pharmacists have a massive increased
administrative load, with nothing in return.
Aggression towards pharmacy staff
Savings each year
- Drug shortage because of lower prices.
(companies are not interested in this small
country with extreme low prices) - Insurance companies are too powerful: "sign
the contract at the bottom." - Next step: Therapeutic Preference Pricing?
2. Official tasks of a pharmacist
These 13 performance indicators
form the base for negotiations
The Dutch Health Authority has set up 13 performance
descriptions for pharmacists:
between pharmacists and
The distribution of medicine
Patient counsel ing in case of new use of medicine
insurance companies!
Giving instructions in using pharmaceutical devices
Conducting medication reviews on patients using chronic medication
Pharmacotherapeutic coaching in case of policlinical visits
Pharmacotherapeutic coaching in case of hospitalisation
Pharmacotherapeutic coaching in case of hospital discharge
Information sessions for pharmaceutical selfmanagement
Giving advise on pharmaceutical "self-care"
Keep in mind, the goal of insurance companies is to pay as
10. Giving advise on the use of medicine during travel
little as possible.
11. Giving advise on the risks of il ness during travel 12. Mutual services 13. Additional performances
These 13 performance descriptions form the base for
negotiations between pharmacists and insurance
The distribution of medicine
3. Financing pharmaceutical
Patient counsel ing in case of new use of medicine
Giving instructions in using pharmaceutical devices
Conducting medication reviews on patients using chronic medication
Pharmacotherapeutic coaching in case of policlinical visits
Pharmacotherapeutic coaching in case of hospitalisation
Pharmacotherapeutic coaching in case of hospital discharge
Information sessions for pharmaceutical selfmanagement
Giving advice on pharmaceutical "self-care"
10. Giving advice on the use of medicine during travel 11. Giving advice on the risks of il ness during travel 12. Mutual services 13. Additional performances
Pharmacist: "I'd like you to make use of my skill and task of giving
information sessions for pharmaceutical selfmanagement, and pay
As a pharmacist you have to show that your
accordingly"
services are of added value!
Insurance company: "Why should I pay you for giving information
sessions for pharmaceutical selfmanagement"
Pharmacist: "So your asthma and COPD patients will use their
inhalators correctly, or diabetics measuring their glucose levels in the
right way."
"Increasing the effectiveness of adherence
interventions may have a far greater impact
Insurance company: "I don't care whether they use it correctly or not.
Why should I?"
on the health of the population than any
improvement in specific medical treatments"
Interventions for helping patients to follow prescriptions for medic
ations RB Haynes, H McDonald, AX Garg, P Montague
Pharmacists: "This study shows that with additional
Additional conclusion:
interventions (PHARMACOP) savings of €227,- per patient
can be realised each year. This intervention also results in
"Based on the cost-saving strategy, health
the prevention of 0.07 hospital-treated exacerbations per
insurance companies should be stimulated to
patient per year."
reimburse these type of interventions.
Insurance company: "… How much money do you want?"
Furthermore, community pharmacists are well
positioned - and are recommended - to integrate
COPD specific pharmaceutical care as part of
their daily practices"
+/- 300,000 COPD patients in the Netherlands…
300,000 * €227,- = €68.100.000,-
Smeele IJM, Van Weel C, Van Schayck CP, Van der Molen T, Thoonen B, Schermer T, et al. NHG-Standaard COPD. Huisarts Wet
Improving inhaler adherence in patients with chronic obstructive pulmonary disease: a cost-effectiveness analysis. van Boven JF1,
Improving inhaler adherence in patients with chronic obstructive pulmonary disease: a cost-effectiveness analysis. van Boven JF1,
Tommelein E, Boussery K, Mehuys E, Vegter S, Brusselle GG, Rutten-van Mölken MP, Postma MJ.
Tommelein E, Boussery K, Mehuys E, Vegter S, Brusselle GG, Rutten-van Mölken MP, Postma MJ.
Insurance companies in the Netherlands are
afraid of hospitalization, and rightly so…
One more important thing…
• 195,372 Community Acquired Pneumonia cases among 16,7 mil ion
"Wet Geneeskundige Behandelovereenkomst"
• 63% (123,357) of the included patients were hospitalized for 1 or more
"Medical Treatment Agreement Act"
• 5.9% (n = 7241) spent at least one night in the Intensive Care Unit (ICU)
This law states that a pharmacist is responsible for the
• Mean costs ranged from €482,- per episode for 0–9 year olds treated in
treatment outcomes of a patient he distributes medication to.
the outpatient hospital setting and up to €16.374,- per episode for 50–64
year olds admitted to the ICU
Conclusion: Effective interventions, targeted at older adults, to prevent
Why is this important?
pneumonia could reduce the (financial) burden due to pneumonia!
Incidence, direct costs and duration of hospitalization of patients hospitalized with community acquired pneumonia: A nationwide retrospective claims database analysis. Mark H. Rozenbauma, et al.
A pharmacist being held responsible for his actions, will
have more incentive to properly execute his job.
Bottom line:
In the Netherlands, 40.000 prescriptions are amended/changed by
pharmacists each day, for various reasons:
- Dosage alterations
Lower dosage for children (antibiotics),
Taking responsibility for good
higher dosage in case of kidney failure
pharmaceutical care, as well as
- Drug interactions
Interaction between paroxetin and
quantifying and reporting your actions
as a pharmacist is a first step in
- Contra-indications
Ketoconazol and pregnancy
achieving ánd providing better
- Wrong description of use Apply the crème thick vs thin
healthcare for a fair price.
- Wrong form of drugs Tablets instead of a oral suspension
- Unavailabilty of drugs Finding the most suitable alternative
In a constantly changing field of
work, we have to remind
ourselves of Darwin.
Source: http://metaweb.hu/wp-content/uploads/Financing-Pharmaceutical-Care-in-the-Netherlands.pdf
How Science Shapes Economic Professor of Economics, Georgia State University; Research Associate NBER Vienna, May 6, 2015 Paula Stephan Georgia State University & NBER • Discuss relationship between scientific research and economic growth and methods used to explore the • Make case that although there is strong relationship, caution is called for in assuming that relationship is
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