PROJECTS
Analysis of Pharmaceutical Public Plan Policies, New Zealand
The problem
The Canadian Government was considering introducing a pharmaceutical procurement scheme based on the New Zealand approach to public funding of pharmaceuticals but didn’t know if the scheme would work well in Canada.
The New Zealand model drives down the price of pharmaceuticals by restricting the range of products it funds for each indication, creating competition between generic and innovative products. However, this approach narrows the choice of publicly funded medicines, can worsen health outcomes as a result of a greater range of side effects and lower compliance by patients.
How we helped
The key question for policy makers is whether financial savings from lower prices and more restricted choice of pharmaceuticals outweigh the costs of poorer health outcomes. Castalia collected evidence of New Zealand’s experience under its pharmaceutical funding model. We examined the costs and benefits of the model and then presented the analysis of the implications of New Zealand’s experience for Canada through workshops and presentations in every provincial capital in Canada. These workshops helped policy makers understand the health consequences that accompany the lower prices.
Impact
Most Canadian provinces did not follow New Zealand’s example, while others introduced elements of the New Zealand procurement approach. None of the provinces fully implemented the New Zealand model.
How can we help you?
How can we help you?
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.
