Drug Shortages, Rising Costs Plunge the Healthcare System into Crisis

Aug 10 , 2024
By Halima Abate (MD)

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Prescription drug availability is essential for any healthcare system, yet we face a global crisis of pharmaceutical shortages threatening patient care, health outcomes, and quality of life. In a world propelled by technological innovation and efficient logistics, the rise in drug shortages should be alarming. Healthcare systems globally are struggling to manage the impact, focusing on streamlining drug supply chains and devising effective reimbursement strategies to ensure affordable, high-quality care for all.

Take Ethiopia, for instance, a country with spiralling drug costs and rising claims that are jeopardising its healthcare stability. With over half of health claims tied to soaring medication prices, the burden on the system is becoming unbearable. This crisis affects not only the financial viability of healthcare but also heavily strains citizens to look after their health.

A multitude of factors are at play, causing these prescription drug shortages.

The web of trouble abounds from quality control issues in manufacturing, insufficient raw materials and regulatory constraints, market withdrawals, procurement problems, business decisions, and even natural disasters. Among these, inefficient supply chain management stands out as a major limitation. The healthcare supply chain should reinvent itself, taking cues from industries like beverage giant Coca-Cola, which delivers to over 20 million outlets in more than 200 countries weekly — even reaching remote African villages.

Meanwhile, life-saving medications can take over a month to arrive at the same destinations.

Addressing the drug shortage crisis requires a manifold approach. This means enacting policy changes, streamlining reporting processes, and accelerating approval timelines. Engaging with pharmaceutical companies is essential, as financial pressures are mounting on patients and third-party entities down the supply chain. By facilitating collaborations, we can create arrangements that make vital medications available at fair prices, benefiting all parties involved.

Successful initiatives like Ukraine’s Affordable Medicines Program (AMP), launched in 2017, offer hope. This program eased the financial burden on citizens and healthcare systems, showing that structured efforts can effectively lower healthcare costs.

A similar model could be a game-changer for Ethiopia.

Implementing a transparent pricing policy could disrupt the cycle of skyrocketing drug costs. Partnering with pharmaceutical companies to establish fair pricing could stabilise the financial health of insurance schemes while ensuring that citizens have access to affordable medications. Regular evaluation of the program’s impact is crucial, including pricing agreement assessments and necessary adjustments to maintain financial viability and healthcare accessibility.

Data collection and analysis must be at the forefront of these efforts, not just to monitor medication prices but to understand their effects on reimbursement. Data-driven decision-making enables targeted interventions to rid strain on third-party institutions. Collaborating with international organisations can enhance these programs by incorporating global best practices into local strategies.

The program in Ukraine has the potential to address Ethiopia's immediate financial challenges and lighten the burden on its citizens. By championing transparent pricing and promoting collaboration, Ethiopia can step into a future of improved healthcare accessibility and affordability. This approach, anchored in strategic cooperation, transparent pricing, rigorous evaluation, and continuous improvement, positions it to overcome complex healthcare problems and build a more resilient and equitable healthcare system for all its citizens.

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PUBLISHED ON Aug 10,2024 [ VOL 25 , NO 1267]

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