Austrian "drug costs explosion is over"

The explosion in pharmaceutical costs in Austria is over, withfourth-quarter 2000 drug spending actually falling 3%, according to Herbert Cabana, president of the pharmacists' national organization, the OeAK.

While January and February 2001 figures are expected to show a slight rise, the cost of drugs to the health service has not risen now for some five months, against the 12%-13% annual increases reported by the health funds in previous years, said Mr Cabana. One reason for the improvement is said to be the solidarity model agreed between the pharmacies and the health funds, under which pharmacies did not benefit from increases in sales and so had no economic interest in boosting volume, he added.