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Joaquim Cardoso MSc.
Servant Leader, Chief Research & Strategy Officer (CRSO),
Editor in Chief and Senior Advisor
January 19, 2024
This executive summary is based on the article “Inédito: Preço de medicamentos a hospitais cai 7,08% em 2023″, published by Nuon Health on January 17, 2024.
What is the message?
The year 2023 witnessed a notable 7.08% decline in medication prices for hospitals in Brazil, marking the first annual decrease in the historical series of the Hospital Medication Price Index (IPM-H) initiated in 2015.
This unprecedented drop is attributed to a convergence of factors reflecting the post-pandemic normalization of activities, including the conclusion of the pandemic, advancements in vaccination, global supply chain normalization, reduced international freight and fuel prices, and a decline in the value of the dollar affecting imported medications.
ONE PAGE SUMMARY
What are the key points?
Historic Decline: The IPM-H recorded a 7.08% decrease in medication prices for Brazilian hospitals in 2023, a first in its historical series since 2015.
December Contractions: In December, the IPM-H continued its eighth consecutive monthly decline at 0.14%. Notable contractions were observed in various medication groups, with the most significant drops in genitourinary (-3.13%), cardiovascular (-2.64%), hematopoietic (-2.12%), and nervous system (-1.36%) medications.
Contributing Factors: Cloreto de Sódio-based products, Ringer with Lacto solution, Etanercept (used in arthritis treatment), and Dipirona (an analgesic) were key contributors to the December decline.
Economic Analyst’s View: Economist and Fipe researcher Bruno Oliva, the mind behind the index, attributes the negative 2023 cumulative result to the normalization of medication prices in the domestic market post-pandemic. The two initial pandemic years saw a significant rise, particularly in specific therapeutic groups.
Post-Pandemic Dynamics: The post-pandemic scenario is characterized by normalized global production chains, reduced international freight and fuel costs, and a lower dollar value influencing the prices of imported medications.
What are the key statistics?
2023 Decline: Medication prices for hospitals dropped by 7.08% in 2023.
December Contraction: IPM-H declined by 0.14% in December, with major reductions in various medication groups.
Cumulative Increase: Since the beginning of the pandemic in 2020, the IPM-H has seen a nominal increase of 12.58%, recently converging to pre-COVID levels.
Market Convergence: The 2023 IPM-H decline aligns closely with the average exchange rate behavior for the year, with a 6.58% decrease.
What are the key examples?
Medication Groups: Notable drops in prices were observed in genitourinary, cardiovascular, hematopoietic, and nervous system medications.
Contributing Products: Cloreto de Sódio-based products, Ringer with Lacto solution, Etanercept, and Dipirona were significant contributors to the December decline.
Conclusion
The 7.08% decrease in medication prices for hospitals in 2023, as indicated by the IPM-H, marks a significant shift from the rising trend observed in the initial pandemic years.
The convergence of various factors, including post-pandemic normalization, global supply chain stabilization, reduced international costs, and currency value fluctuations, has contributed to this unprecedented drop.
While December showcased the eighth consecutive monthly decline, the cumulative increase since the start of the pandemic highlights the recent convergence to pre-COVID levels, suggesting a broader market adjustment in response to the unique circumstances of the pandemic era.
To read the original publication, click here.
