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HealthcarePharmacoeconomy
FARHAD ZARGARI, MD, PHD
DECEMBER, 2013
Course Outline


Session One (92-9-25)


Introduction



Healthcare



Health System





2

Pharmaceuticals in Healthcare

Session Two






Session Three



NDP

R&D


Dr. Zargari
1
Introduction
The Changing World
• “The period 2000-2025 will bring the single greatest worldwide change since
we came down from the trees.”
David Schneider & Grady Means, Meta Capitalism

4

4

Dr. Zargari
The Changing World
• “It used to be that the big ate the small. Now the fast eats the slow.”
Geoff Yang, (Institutional Venture Partners)

5

5

Dr. Zargari
The Changing World
Future
Present
Past

Where are
we ?

Where are we
going to be ?

Where
were we ?
6

6

Dr. Zargari
The Changing World
• There are THREE kinds of
people:
• 1- Those who Remember
• 2- Those who Think
• 3- Those who Dream

• Those who Remember
• Remember the Past

• Those who Think
• Try to Grasp the Present

• Those who Dream
• Dream about Future
7

7

Dr. Zargari
The Changing World
Future
Present

Past
Where
were we ?
8

Where are
we ?

Where are we
going to be?

8

Dr. Zargari
The Changing World
• There are three types of people in the world:
• Those who make things happen.
• Those who watch things happen.

• And those who ask - "What happened?"

9

9

Dr. Zargari
1-Cognitive
2-Affective
3-Behavioral

You

Change Yourself First
Change
Process

Outputs
Impact
Outcomes
10

10

Dr. Zargari
2
Healthcare
12



UNDP

Dr. Zargari
13




Increasing
Human
Physical and
Mental
Productivity

Three

Protecting
People’s
Health

Two

One

Healthcare Ultimate Objectives:
Safeguarding
“Human
Capital” as
the Core
Engine of
Development

Sustainable Development

Dr. Zargari
14



Dr. Zargari
15

Human Capital Theory
Aging



Dr. Zargari
16



WHO

WHO
Dr. Zargari
17



–

Dr. Zargari
18



Dr. Zargari
19

GDP

Dr. Zargari
20





SDH
Dr. Zargari
21





Personal Behavior





Living Conditions
Working Conditions

Community Behavior


Economic Resources



Social Resources

Dr. Zargari
Lists of Social Determinants
From World Health Organization

From Social Determinants of Health
National Conference



Income/Social Status



Early Life



Social Support Networks



Education



Education/Literacy



Employment/Work Conditions



Social Environment



Food Security
Gender



Physical Environment




Health Care Services



Life/Coping Skills



Housing



Personal Health Practices



Income and its Distribution



Child Development



Social Safety Net



Gender



Social Exclusion



Culture



Unemployment/
Employment Security

21
22
23
24
25
27

“Social justice is a matter of life and
death.”
World Health Organization
Dr. Zargari
50

50
40
30

20
10
0

25

15
10
29

Dr. Zargari
30

Illness
Orientation

Wellness
Orientation

Fragmented
Care

Comprehensive
Care

Independent
Systems

Integrated
Network
31

1-Socioeconomic Factors 2-Psychological Factors
3-Environmental Factors 4-Biological Factors
1-Preventive Measures

2-Therapeutic Measures
3-Rehabilitative Measures
1-Modern Medicine
2-Complimentary Medicine

Both Sexes
All
Ages
Dr. Zargari
Sustainability

32

Value Creation

Health
Dr. Zargari
3
Health System
Health System Definition


Health systems can be understood in many ways. The World Health
Organization (WHO) defines health systems as “all the
organizations, institutions, and resources that are devoted to producing
health actions.”

Dr. Zargari 34
Health System Definition


Health care system is that part of any state concerned with regulating access
to, financing, and organizing the delivery of health care to the population.
Moran, 1991
Access

Health
Delivery

Financing

Organizing

Dr. Zargari 35
Health System Definition


All the activities whose primary purpose is to promote, maintain, or restore
the health of the society.

Dr. Zargari 36
Health System Definition


Health systems encompass all levels:









central,
regional,
district,
community,
and household.

Health sector projects engage with all levels and elements of the health
system and frequently encounter constraints that limit their effectiveness.

Dr. Zargari 37
Health System Functions


The World Health Report 2000 (WHO 2000) identifies the four key functions
of the health system:








(1) stewardship (often referred to as governance or oversight),
(2) financing,
(3) human and physical resources,
(4) organization and management of service delivery,

Next slide illustrates the relationship between the four functions of health
systems.

Dr. Zargari 38
Relations Between Functions and Objectives of a Health
System
Stewardship
(oversight)

Creating resources
(investment
And training)

Responsiveness
(to non-medical
expectations)

Delivering services
(provision)

Financing
(collecting, pooling
And purchasing)

Functions of the System

Health

Fair (financial)
contribution

Objectives of the System

Source: Adapted with permission from WHO (2001)

Dr. Zargari 39
4
Pharmaceuticals in Healthcare
• ANY CHEMICAL THAT AFFECTS THE PROCESSES OF A LIVING ORGANISM

• A MEDICINE OR OTHER SUBSTANCE WHICH HAS A PHYSIOLOGICAL EFFECT
WHEN INGESTED OR OTHERWISE INTRODUCED INTO THE BODY.
•

Dr. Zargari
• CHEMICAL NAME, THE DRUG’S CHEMICAL COMPOSITION AND MOLECULAR
STRUCTURE

• GENERIC NAME (NONPROPRIETARY NAME)

• TRADE NAME (PROPRIETARY NAME), THE DRUG HAS A REGISTERED
TRADEMARK

Dr. Zargari
Dr. Zargari 43
19.8%
19.1%

Mining, Crude Oil Production
Pharmaceuticals
Tobacco
Food Consumer Products
Household and Personal Products
Telecommunications
Industrial Machinery
Building Materials, Glass
Aerospace and Defense
Shipping
Network and Other Communications Equipment
Banks: Commercial and Savings
Beverages
Metals
Health Care: Insurance and Managed Care
Energy
Chemicals
Specialty Retailers
Mail, Package, and Freight Delivery
Trading
Computers, Office Equiment
Food and Drug Stores
Food Production
Insurance: Property and Casualty (Stock)
Engineering, Construction
Source: Fortune Global 2010

12.3%
11.9%
9.9%
7.5%
7.1%
6.5%
6.2%
6.1%
5.4%
5.2%
4.2%
3.7%
3.7%
3.5%
3.2%
3.1%
2.8%
2.8%
2.5%
2.3%
2.3%
2.0%
1.9%
0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

Dr. Zargari 44
20.0

.

18.0
16.0
14.0
12.0
10.0
8.0

6.0
4.0
2.0

0.0

List by the United Nations (2011)

Dr. Zargari 45
35.0
30.0
25.0
20.0
15.0

10.0
5.0
0.0

Dr. Zargari 46
Dr. Zargari 47
GDP

Dr. Zargari
Dr. Zargari
-

-

-

Dr. Zargari 50
Loss of
Exclusivity

Dr. Zargari 51
.

2016

OTC

.

2011

Dr. Zargari
*
•
- •
- •

R&D

- •

- •

Dr. Zargari 53
*
COUNTRY

PHARMA SHARE OF GDP

TOTAL GDP(MILLION USD)

0.2-0.5

514,060

New Zeland
Japan
Australia
Solomon Islands
Korea Republic
Vietnam

Cambodia
Nepal
China
Fiji
LaoPDR

Malysia
India
Singapore
Iran

Dr. Zargari

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Healthcare-pharmacoeconomy-1

Notes de l'éditeur

  1. A variety of approaches to the social determinants of health exist and all of these are concerned with the organization and distribution of economic and social resources among the population. These are only two lists among the many out there from different global and national organizations