IV The Health Shadow Price and Other Key Political Economy and Policy Issues: Appropriate Threshold Pricing and Policy Application of Methods for Optimising Community Net Benefit with Budget Constraints
Part IV addresses key political economy issues arising in budget-constrained health systems attempting to optimise decision making in better using and integrating existing and new technology starting from characteristic market failure and allocative and displacement efficiency conditions. The health shadow price of Pekarsky (2012, 2015) is shown in Chap. 11 to provide a pathway to allocative efficiency by establishing an economically meaningful threshold value for effects in net benefit assessment, central to all decision making across joint research, reimbursement and regulatory decisions in practice in Fig. p4.1.
The health shadow price in doing so addresses research and reimbursement (adoption and displacement) biases against better use of existing technology and towards new technology that underlie many current health-system inefficiencies. Chapter 12 addresses policy options for meeting the twenty-first-century challenge of successful ageing of the baby boomer population. In particular highlighting promising approaches to age and dementia friendly communities, age care facility design and lower cost while more effective and palliative preferences appropriate alternatives for palliative care.
Fig. p4.1 Optimal decision making cycles for joint research, reimbursement, and regulatory processes locally and globally
Pekarsky B. Trusts, constraints and the counterfactual: reframing the political economy of new drugs. PhD thesis University of Adelaide; 2012.
Pekarsky BAK. The new drug reimbursement game: a regulator’s guide to playing and wining. London: Springer; 2015.