| Creative compliance in pharmaceutical markets: the case of profit controls. | |
| | |
MedLine Citation:
|
PMID: 22280194 Owner: NLM Status: In-Data-Review |
Abstract/OtherAbstract:
|
This article discusses the issue of creative compliance in pharmaceutical markets. In particular, we explore the case of profit controls in the UK as an indirect way of regulating prices of in-patent originators. We study creative compliance in the presence of profit controls, rather than price controls or the Pharmaceutical Price Regulation Scheme in general. We use lessons from the accounting literature to explain firm behavior and reveal potential weaknesses in profit control regulation and use data to show changes in trends following the introduction of this policy. We demonstrate that in the presence of profit controls there is an incentive for producers to increase costs (leading to inefficiencies) or to inflate reported costs. We find some evidence that the behavior of pharmaceutical firms in the UK may have changed as a result of the introduction of profit controls. Although the evidence is in line with what we would expect to occur as a result of creative compliance, establishing a concrete causal relationship between such a pricing policy and costs is not possible. As institutions or organizations look to achieve legitimacy for their actions, they will use the tools they have, whether accounting or regulatory, to best represent themselves. |
| | |
Authors:
|
James Bradley; Sotiris Vandoros |
Related Documents
:
|
19289874 - Construct validity of the assessment of work performance (awp). 2767974 - Gp receptionists: their work and training. 22293664 - Comparing effectiveness of 3 learning strategies: simulation-based learning, problem-ba... 20555174 - Comparing working role values of employed and unemployed clubhouse members. 21134154 - Implementing peer tutoring in a graduate medical education programme. 21332254 - Impact of fibromyalgia severity on health economic costs: results from a european cross... |
Publication Detail:
|
Type: Journal Article |
Journal Detail:
|
Title: Expert review of pharmacoeconomics & outcomes research Volume: 12 ISSN: 1744-8379 ISO Abbreviation: Expert Rev Pharmacoecon Outcomes Res Publication Date: 2012 Feb |
Date Detail:
|
Created Date: 2012-01-27 Completed Date: - Revised Date: - |
Medline Journal Info:
|
Nlm Unique ID: 101132257 Medline TA: Expert Rev Pharmacoecon Outcomes Res Country: England |
Other Details:
|
Languages: eng Pagination: 31-8 Citation Subset: IM |
Affiliation:
|
LSE Health, Cowdray House, London School of Economics, Houghton Street, London WC2A 2AE, UK. s.vandoros@lse.ac.uk. |
Export Citation:
|
APA/MLA Format Download EndNote Download BibTex |
| MeSH Terms | |
Descriptor/Qualifier:
|
|
From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine
Previous Document: Access to orphan drugs in Europe: current and future issues.
Next Document: The economic burden placed on healthcare systems by childhood obesity.