Close this search box.

IHS: progress in healthcare for patients poses challenge to policy makers, payers

An immense wave of progress for patients is posing increasingly challenging questions for policymakers, payers and healthcare stakeholders in Western Europe. That is at least what a new report by IHS states says. Between 2015 and 2020, growth in public healthcare expenditure is expected to remain negative or subdued.

According to this IHS Life Sciences report, ‘Comparative Healthcare Financing Trends in Europe: A Retrospective and Forward-Looking View,’ the next wave of treatment breakthroughs coincides with a period when cost containment is firmly on the healthcare system agenda. Cameron Lockwood, senior consultant at IHS Life Sciences and the report’s author, continues:  “A wealth of new treatments and innovations, specifically in the cancer field, will reach the market at a time when many countries are on cost-saving drives.”

The report examines healthcare financing trends between two periods: 2010 to 2014 and 2015 through 2020. Countries in the study include France, Germany, the Netherlands, Poland, Spain and the United Kingdom. The diverse set of healthcare systems, pharmaceutical pricing and reimbursement policies, economic conditions and political circumstances in these countries enabled the team to model pricing structures through a variety of systems.

Emerging new treatments and continued economic recovery will contribute to an uptick in public reimbursement spending on pharmaceuticals, the IHS report says. In some countries, this spending is forecast to be less as a share of overall public health expenditure compared to 2014, raising question marks over the ability to finance innovations in therapy.

Subdued ore negative growth public healthcare expenditure

Between 2015 and 2020, growth in public healthcare expenditure is expected to remain negative or subdued. Under a variety of different growth scenarios, forecast public reimbursement spending on oncology medicines is set to account for a share of overall public drug spending broadly similar to current expenditure patterns. A bottom up, budget impact modelling approach suggests that these growth scenarios are able to accommodate significant new therapy classes in some of the most common cancers.

The reality remains however that some countries will face pronounced budgetary pressures. An example is Poland, where pre-existing gaps in access mean that maintaining or only marginally increasing the budget for oncology medicines poses a risk to access to future innovations.  Competing government priorities stemming from campaign pledges limit resources. There has reportedly been a slowdown in the number of innovative new drugs securing reimbursement listing. Spain as well may, depending on the resolution of political uncertainty, have ongoing deficit challenges that will result in constrained resources and thus more pronounced challenges in sustaining access to emerging treatments. 

Germany is predicted to see a negative CAGR in total public healthcare spending over 2015-20. France’s social security deficit challenges reduces spending growth to an historic low. To make up the difference, between 2015 and 2020, rates of growth of private healthcare expenditures are once again predicted to exceed those of public outlays, concludes IHS.


ICT&health World Conference 2024

Experience the future of healthcare at the ICT&health World Conference from May 14th to 16th, 2024!
Secure your ticket now and immerse yourself in groundbreaking technologies and innovative solutions.
Engage with fellow experts and explore the power of global collaborations.

Share this article!

Read also
Innovation Adoption: How to Traverse The Valleys of Death
Pioneering Cardiac Arrest Detection for Enhanced Survival.
CardioWatch Revolutionizes Cardiac Arrest Detection
Dr. Oscar Díaz-Cambronero, Head of Perioperative Medicine Department at La Fe Hospital, spearheads innovative telemonitoring initiatives revolutionizing patient care
Smartwatches Saving Lives Inside and Outside the Hospital
EIT 2024
EIT Awards 2024. Two European startups are revolutionizing the treatment of cardiovascular diseases
Bertrand Piccard, Swiss explorer and founder of the Solar Impulse Foundation
EIT Summit 2024. What are the trigger points that drive or inhibit innovation?
MMC pioneers wireless monitoring for premature infants with the innovative Bambi Belt, revolutionizing care with improved comfort and mobility.
Wireless Monitoring of Vital Signs in Premature Infants at Máxima MC
Data protection-critical incidents resulting from human error are often rooted in stress, routine, negative attitudes toward IT, and deficits in employees' identification with the healthcare facility.
How cyberpsychology helps prevent human errors leading to data leaks
What technologies will enter our homes in a few months? ICT&health checked it out at the CES 2024.
CES 2024: Meet the exciting innovations for health and well-being
An article on a new study on e-health assessment tools
eHealth success lies at the intersection of technology, people, and organization
Unlocking the Future: Professor Sylvia Thun, a trailblazer in healthcare interoperability, discusses the crucial role of seamless data exchange in revolutionizing medicine and empowering individuals with comprehensive access to their health data.
Seamless data exchange will unlock the long-awaited benefits of digitalization
Follow us