Inflation in healthcare refers to the persistent increase in the cost of medical goods and services over time. This phenomenon is driven by a combination of factors, including advancements in medical technology, rising labor costs, pharmaceutical innovations, and the complex interplay of supply and demand within the healthcare market. While there are several options for taming inflation in healthcare, prioritizing prescription drug price control and placing a strong emphasis on preventive care emerge as key solutions, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Impact of Inflation on the Healthcare Sector, H2 2023”, reveals that the surveyed healthcare professionals (HCPs)* believed that enforcing prescription drug price controls and giving greater priority to preventive care stand out as the top two solutions that could effectively mitigate healthcare inflation. Similar results were observed in previous survey waves that were launched to capture in H1 2023 and 2022 outlook.

Sachin Gharat, Associate Project Manager at GlobalData, comments: “Inflation in healthcare often results in increased expenses for medical services, medications, and equipment. This can burden both patients and healthcare providers, potentially limiting access to essential treatments and straining the financial stability of healthcare institutions. Additionally, it may contribute to disparities in healthcare access and quality.”

In H2 2023, more than half of the surveyed HCPs expressed a preference for incorporating preventive methods into patient care. This inclination toward prevention underscores a growing recognition of its dual benefit: improving health outcomes while simultaneously contributing to a more cost-effective healthcare system.

Gharat continues: “Long discussed as a potential cost-control strategy, prioritizing preventive care to reduce overall healthcare spending is often cited in conjunction with drug pricing controls. Additionally, efforts aimed at reducing avoidable complications and hospital admissions are seen as integral to alleviating financial strain on the healthcare sector, especially within the constraints of already stretched budgets.”

A majority of respondents, exceeding 50%, believe that controlling the prices of prescription drugs stands out as a pivotal solution.

Gharat concludes: “Implementing controls over drug prices is a complex endeavour that demands careful balancing. Excessive pricing limits could potentially discourage pharmaceutical companies from investing in innovative research and development, consequently leading to higher drug prices.”

*GlobalData’s 2023 H2 physician survey, sample size of 682 respondents, conducted across the US, France, Germany, Italy, Spain, UK, and Japan