PBS saves $7b in hospitals
November 24, 2015
Innovative medicines funded
on the Australian Pharmaceutical
Benefits Scheme (PBS) have
resulted in hospital sector savings
to the tune of more than $7b
according to a new report released
by Medicines Australia (MA).
The report, commissioned by
MA, was completed by American
Economist Professor Frank
Lichtenberg from Columbia
University, USA and funded
through an unrestricted grant from
pharmaceutical company MSD.
MA ceo Tim James said, “This
comprehensive study shows that
taxpayers and patients are getting
value for money from government
investment in the PBS.”
The $7b savings in hospital costs
for people up to 80 years of age
more than compensates for the
cost of these medicines, he said.
Premature mortality for all
diseases fell by 24% in Australia
between 1998 and 2011 and
Lichtenberg said that around
60% of this can be attributed to
innovative medicines.
“This research estimates that
innovative medicines saved over
140,000 years of life before the age
of 75 in Australia in 2011”.
“Without these medicines, the
cost of hospitalisation in 2011
would have been 13% or $6.8b
higher,” said Lichtenberg.
Five-year cancer survival rates
also improved for all cancers from
49% to 62% between 1986 and
2007 with 40% attributable to new
medicines listed on the PBS.
“This report should provide
confidence to the Government that
listing new medicines on the PBS is
an astute investment,” said James.
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