Table 1 Comparison of financial models against the three fundamental criteria
From: Models for financing the regulation of pharmaceutical promotion
Approach | Criteria | Other features of approach | ||
|---|---|---|---|---|
Stability of funding | Predictability of funding | Preserves independence | ||
Fee for each item of promotion | Yes, unless dramatic decrease in overall promotion or amount spent on promotion | Yes, unless dramatic decrease in overall promotion or amount spent on promotion | May create close relationship between industry and regulator | In Canada industry cooperation is voluntary |
Fee paid by companies to regulatory authority to examine new drug applications and/or annual licensing fees | Not necessarily, would depend on the number of new drug applications submitted annually | Not necessarily, would depend on the number of new drug applications submitted annually | May create close relationship between industry and regulator | In the Australian variant some of the money is returned to the industry association to help fund its self-regulatory system |
Fee for every prescription dispensed | Yes | Yes | Yes, but potentially not if companies pay a fee for every prescription dispensed for their products | Can be seen as a tax on the poor and sick; May not be feasible in developing countries where drugs are often bought through informal channels; Would not work in developed countries where the public health system covers most of the cost of medications |
Fines paid by companies for code violations | Not necessarily, depends on how stringent code provisions are and how vigilant enforcement is | Not necessarily, depends on how stringent code provisions are and how vigilant enforcement is | Yes | Could encourage vigorous enforcement of code to increase revenue to regulator; Might be useful as a supplementary source of income |
Using tax revenue | May depend on relationship between government and industry | May depend on relationship between government and industry | May depend on relationship between government and industry | Financing could be tied to health care system savings due to better regulation of promotion; Proper drug use might not necessarily lead to savings |
Payments from social insurance funds | Depends on whether payments are made on voluntary basis or mandated by legislation | Depends on whether payments are made on voluntary basis or mandated by legislation | Yes | Financing could be tied to health care system savings due to better regulation of promotion |