australian drug spending cuts criticised

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PharmacoEconomics & Outcomes News 360 - 27 Apr 2002 Australian federal government plans to stem prescription drug costs by providing financial incentives to physicians’ groups for choosing less costly generic drugs and prescribing fewer drugs have been criticised by the Australian Medical Association, reports the BMJ. The pilot programme, will allocate 50% of the savings obtained from reduced drug prescribing under the Pharmaceutical Benefits Scheme (PBS) to general practice divisions. Costs associated with running the PBS are rising and currently total more than $US2.2 billion per year, but are expected to decrease as a result of the government’s new programme. Zinn C. Plan to cut drug spending attacked by doctors. BMJ 324: 937, 20 Apr 2002 800896861 1 PharmacoEconomics & Outcomes News 27 Apr 2002 No. 360 1173-5503/10/0360-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved

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PharmacoEconomics & Outcomes News 360 - 27 Apr 2002

■ Australian federal government plans to stemprescription drug costs by providing financialincentives to physicians’ groups for choosing lesscostly generic drugs and prescribing fewer drugs havebeen criticised by the Australian Medical Association,reports the BMJ. The pilot programme, will allocate50% of the savings obtained from reduced drugprescribing under the Pharmaceutical Benefits Scheme(PBS) to general practice divisions. Costs associatedwith running the PBS are rising and currently totalmore than $US2.2 billion per year, but are expected todecrease as a result of the government’s newprogramme.Zinn C. Plan to cut drug spending attacked by doctors. BMJ 324: 937, 20 Apr2002 800896861

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PharmacoEconomics & Outcomes News 27 Apr 2002 No. 3601173-5503/10/0360-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved