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Price Volume Agreements PPRI Project Christine Leopold Gesundheit Österreich GmbH

Price Volume Agreements PPRI Project Christine Leopold Gesundheit Österreich GmbH PPRI Conference Warsaw, 29 October 2007. Terminology regarding pricing. Pricing policies Price control (statutory pricing, price negotiation, public procurement) Free pricing Pricing procedures

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Price Volume Agreements PPRI Project Christine Leopold Gesundheit Österreich GmbH

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  1. Price Volume Agreements PPRI ProjectChristine LeopoldGesundheit Österreich GmbH PPRI ConferenceWarsaw, 29 October 2007 1

  2. Terminology regarding pricing • Pricing policies • Price control (statutory pricing, price negotiation,public procurement) • Free pricing • Pricing procedures • External price referencing • Internal price referencing • Cost-plus • Others (e.g. indirect price control) 2

  3. Pricing policiesPrice control (at price setting level) • For all pharmaceuticals (BE, BG, CY, CZ, EL, LU; TR) • For POM (NL, PT; NO) • For reimbursable pharmaceuticals • Most common pricing policy • No price control • DK - however linkage to reimbursement • MT 3

  4. Pricing policiesWay of price control • Statutory pricing • e.g. BE, BG, CY, CZ, EL, ES, LT, LU, PT, SE; NO, TR • Negotiations (FR, IT) • Mixture • Statutory pricing after negotiations (EE, LV, PL) • Price Volume Agreements (e.g. EE) • Public procurement in the hospital sector 4

  5. Other ways of control costs • Claw-back • A system allowing third party payers to recoup (part ofthe) discounts/rebates granted in a reimbursement system between various stakeholders, e.g. wholesalers and pharmacists • Examples are NL and UK • Pay-back • A financial mechanism that requires manufacturers to refund a part of their revenue to a payer (i.g. social health insurance / national health service) if sales exceed a previously determined or agreed target-budget. • Example FR 5

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