Negotiations To Control Spanish Health Spending

In an attempt to control national spending on health care, the Spanish government is looking to reach an agreement with the national pharmaceutical industry association, Farmaindustria, which may result in a 20% reduction in supplies and controls on expenditure.

Negotiations are underway to control pharmaceutical spending through to 1997. The Ministry of Health and Farmaindustria are finalizing an agreement which will include, among other things, a plan to contain pharmaceutical expenditure, reports the Spanish financial daily, Cinco Dias. The Ministry wants to establish in writing how much pharmaceutical spending will increase between 1995 and 1997. The industry association has indicated that it considers this to be a good move, enabling drug companies to plan their production levels.

The Ministry is, at the same time, in negotiations with suppliers to reach an agreement to reduce the price of supplies. It is understood that in 1995 the budget will allow for a reduction in the time to pay to 90 days and discounts of 20%. At the moment, private health care companies pay up to 20% less for hospital supplies than state-funded care.