Different prices for the same pharmaceuticals
The price paid for identical pharmaceutical products often varies by 6 to 9 percent between county councils. The fact that there are relatively large spreads in prices for entirely homogeneous products suggests that more effective procurement and better competition could lead to lower prices.
These are the findings of a new report from the Swedish Competition Authority.
County councils spent SEK 7.6 billion on ordered pharmaceuticals in 2015, accounting for 19 percent of the total market for pharmaceuticals. Ordered pharmaceuticals are pharmaceuticals used at hospitals and in other forms of inpatient and outpatient care (i.e. pharmaceuticals collected from ordinary pharmacies are not included).
The Swedish Competition Authority has mapped the market for ordered pharmaceuticals and the prices the county councils obtained in their procurements. These prices often vary by between 6 and 9 percent between county councils.
“The spread of prices is considerably greater for some goods, showing that it is possible to influence the degree of competition and thus the prices that can be obtained in procurement,” explains Dan Sjöblom, Director-General of the Swedish Competition Authority.
Virtually all county councils carry out collaborative procurement with one or more other county councils. Those that do not are the three metropolitan county councils.
“It is important that these procurements and the resulting degree of competition are monitored and form the basis for future procurements,” continues Mr Sjöblom.
“In the worst case, too many procurements and agreement periods that are too long can have the opposite effect: prices rise again.”
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Last updated: 2021-05-17
Press release21 june 2016