Mohammadi F, Dargahi H, Emamgholipour Sefiddashti S, Aladdin M M. Examining the Share of Pharmaceutical and Medical Consumable Costs in Total Health System Expenditure: A National Study in Iran. jhosp 2025; 23 (4) :450-470
URL:
http://jhosp.tums.ac.ir/article-1-6729-en.html
1- Msc in Health Care System, Health Management, Policy, and Economics Department, School of Public Health, Tehran University of Medical Science, Tehran, Iran.
2- Professor in Health Care Management and Policy, Health Management, Policy, and Economics Department, School of Public Healtht, Health Information Management Research Center, Tehran University of Medical Science, Tehran, Iran. *Corresponding Author Email: hdargahi@ sina.tums.ac.ir
3- Professor in Economics, Health Management, Policy, and Economics Department, School of Public Health, Tehran University of Medical Science, Tehran, Iran.
4- Msc in Medical Technology and Device Engineering food & Drug Organization, Ministary of Health, Tehran, Iran.
Abstract: (874 Views)
Background and purpose: The healthcare sector is undergoing a profound transformation driven by rapid scientific, economic, and social advancements. The World Health Organization (WHO) emphasizes the necessity of medical equipment and supplies for reducing health disparities and achieving strategic health system objectives. However, there is a notable gap in the literature regarding this cost component within the Iranian health system. This study, therefore, aims to quantify the share of pharmaceutical and medical consumable costs in Iran's total health system expenditure.
Methods: This retrospective, cross-sectional study analyzed outpatient and inpatient medical records from 2018 to 2020. Data on the costs of pharmaceuticals and medical consumables were extracted from Iran's National Health Accounts (NHA) and the SPAS dashboard. The collected data were statistically analyzed to determine the proportional costs of these items relative to total national health expenditure.
Results: Between 2018 and 2020, inpatient pharmaceutical and medical consumable costs constituted 12% of the total health expenditure, demonstrating an annual decrease of 1.8%. In contrast, outpatient costs accounted for 19.5% of the total, with an annual increase of 0.7%. Basic health insurance allocated approximately 10.3% of its budget to cover these items, which corresponds to 31.5% of the nation's total healthcare spending.
Conclusion: The findings highlight the critical need for strategic interventions within Iran's health system. Key implications include the necessity for effective supply chain management, strategic planning to reduce import dependency, and robust mechanisms for monitoring prices. Mitigating the adverse effects of inflation and sanctions is paramount. Furthermore, increasing the healthcare budget's share of the Gross Domestic Product (GDP) and expanding insurance coverage are essential for ensuring financial protection for the population and advancing towards Universal Health Coverage (UHC).