Potential For PBMs In France?

4 December 1995

The French government recently revealed its aims to cut costs in health care and to tighten up on the treatments patients are given, with the Prime Minister, Alain Juppe, calling for 5 billion French francs ($1.02 billion) of savings from doctors and the drug industry (Marketletters passim). France's bill for drugs per person is the highest in Europe in terms of volume. With this in mind, is there a role for US-style pharmacy benefit managers in the French health care system?

A report by Droit & Pharmacie of France, which looks at this possibility, suggests that it is difficult to imagine a role for American PBMs within pharmaceutical distribution in France. However, D&P adds that local distributors and suppliers might be willing to use the tools available from managed care organizations and PBMs, either through partnerships with these entities or alone, in order to improve the cost efficiency of medicines.

D&P has identified favorable and unfavorable factors concerning the development of PBM-type structures in France. Favorable factors include:

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