Working in Health Economics
As global governments seek to control healthcare spending in the face of an ageing population, the role of health economics is growing in importance.
Of increasing significance - and the evidence of this in Europe is indisputable - is the concept of health technology assessment. This is essentially established on two pillars: scientific assessment; and comparative economic assessment. As countries look to introduce HTA systems, pharmaceutical and medical device manufacturers require qualified Health Economists to help them plan ahead and prepare for an alternative approach to market entry, which in turn is driving recruitment across Europe.
The systems that are being considered in Europe are somewhat diverse, but efforts are being made to introduce some type of harmonization on a pan-European level. Moreover, whilst the standardisation of practice is a positive aim that will help facilitate co-operation and the cross-border exchange of data (thereby avoiding duplication and saving companies money), economic considerations vary from country to country. This makes diversity of experience and flexibility of approach in a Health Economist very useful and enhances career prospects.
In line with the rest of the industry, health economics is also seeing a rapid surge in the emerging markets. According to a study carried out by Cutting Edge Information (a life sciences research and consulting firm), health economics spending in Europe and Canada increased 21% in 2010, whilst emerging markets saw a 45% increase in funding. Interestingly, small pharmaceutical and biotechnology companies increased their pharmaco-economic investments in emerging markets by 55%, whist large and mid-sized companies saw a growth of 15%.
Germany & France
On 1 January this year, the new German law on the restructuring of the pharmaceutical sector came into force. The principal aims of the government were to cut spending, whilst maintaining a high level of safety and ensuring that an appropriate path to market for innovation could be created.
Prior to the new law, free pricing existed for all innovative products in Germany. However, under the new system, originator companies will be permitted only one year of free pricing for an innovative drug. Upon the expiry of this period, the drug will be assessed by the authorities in order to determine whether it offers any added benefit compared to similar products on the market. It is only if this benefit can be proven that the drug will then be included in the reimbursement system.
France too stands on the brink of a legislative revolution in the pharmaceutical sector, the impetus for which was the scandal involving Servier's diabetes drug, Mediator, which is reported to have caused some 500 deaths since the 1970s.
Recruitment
The International Society of Pharmacoeconomics and Outcomes Research (ISPOR) has seen its numbers increase from 400 members in 1995 to currently having over 5500 members in over 85 countries. The majority of health economists have either a Master’s Degree or PhD, and the most common entry route to the private sector seems to be through joining a consultancy. However, the number of opportunities directly within pharmaceutical companies is significantly on the rise.
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