1- Domestic production of new drugs: This criterion achieved the highest rank in TOPSIS method and its relative closeness to the ideal solution was 0.556, which has the best value among other criteria. It can be said that a domestic new drug will be worth 49-1=48 points.
The dilemma for health insurance organizations is to find a policy that can find a balance between the objectives of ensuring. This policy is making drugs affordable to the people, and health insurances funds, and to aid to promote and develop domestic drug production without threatening the revenue generation activities of medical providers, while keeping the macro policies of the government firm.
Because, health insurance funds, with their huge outlay on drugs each year (30% out of total budget), were keen to have greater control over drug prices and volume. There was a tendency for drug importers and doctors to introduce foreign drugs to the commitment list of health insurances. But CCD severely restricted it, since a domestic drug production policy is determined by HCHI. There are measures in place to restrict spending on pharmaceuticals such as popularizing prescribing domestic drugs. While, patients and doctors both want greater freedom to get the best drugs available, especially if health insurance is paying for them.
The local pharmaceutical industry had tried to develop and gradually increase its market share with an explicit policy goal to reach 84% of market share by 2025 (
13). Most of its production consisted of low-priced generic drugs, although the government was providing some assistance for innovation, especially for industrializing the production of traditional herbal medicines. Such criteria for selecting drugs for reimbursement favored domestic producers.
2- Duration of using the new drug: This criterion owns the second rank according to the sub criteria and the TOPSIS method. The relative proximity number of this criterion is 0.399. If the average duration of using the new drug is shorter than the average duration of using the previous drug (if it existed) then the drug will also have 49-2=47 points at this stage. This criterion is included in the clinical assessment criteria.
Because duration of using a drug has effects on consuming quantity and drug quantity is one of the cost elements, so the shorter the treatment duration by the new drug becomes, it causes lesser costs directly for insurances funds.
On the other hand, short duration of using a drug, can probably create less adverse drug reactions. Adverse drug reactions are a leading cause of morbidity and represent a substantial burden on health-care resources. Many countries spend 15% to 20% of their hospital budgets to treat drug complications (
14,
15). Therefore, this criterion is a good factor to indirectly diminish costs for health insurance Companies.
Also in Canada, in order to assess requests accurately for drug coverage, the following information is required: number of days per cycle for each agent, cycle frequency, and expected treatment duration (total number of cycles) (
16).
3-The results of intra-country studies (clinical and economic) for a new drug get evaluated by an independent group: from the perspective of TOPSIS method if a drug gets evaluated by an independent appraisal group and gets suggested for joining the drug commitment list of insurance organizations, it will have the score of 46. Its relative closeness number to the ideal solution was 0.363 and it is close to the positive ideal of “Very much“ more than the remained criteria. This criterion is classified under the category of quality evaluation of a study.
Like this, Danko suggested for a balanced assessment system in middle-income countries. The pricing and reimbursement body (PRB) performs a scientific inspection and, if the profile is complete, it forwards the entire documentations to a health technology assessment group (HTAG) that, if possible, works independently from the PRB. Between PRB and an HTAG is a major distinction. A PRB is a decision-making body that consults with pharmaceutical companies and takes pricing and reimbursement decisions, whereas an HTAG is a specialist association that carries out a balanced assessment system which is a very important input for the PRB’s following decision. HTAGs are therefore the excellent arrangers and specialized independent organizations, government officials. Either they are under the support of scholastic institutions or they are not. PRB should not affect on HTAG decisions; otherwise, the PRB’s position and last budget-related regards would influence the fairness of the HTAG assessment. Ideally, HTAGs themselves can be comprised of two subgroups, the first one performing simplified economic evaluations, and the second one reviewing the worth of novel drug or new equipment for patients and community (
17). Another utilization instance of independent groups is in Canada. Drug Quality and Therapeutics Committee (DQTC) is an expert advisory group to provide independent and specialized advice to the Minister of Health of this country. In 1997, a Sunset Review was conducted of the DQTC to re-evaluate the continued role and mandate of the committee. One of the major recommendations of the review panel was that representation from health economics and pharmaco-epidemiology should be increased to enhance the committee’s focus on the value for money assessment of new drugs (
18).
Therefore, it is logical that we separate assessment groups in specialized categories for new drug entering to reimbursement list of public health insurances and these groups must have no dependence to supply side stakeholders and providers.
4- Impact budgeting: Economic criteria for drug evaluation entail this criterion. The Budget Impact Analysis is one of the key elements of the reimbursement dossier which was placed among the top rankings, and its relative closeness number (0.362) got the forth place. In brief, the Budget Impact Analysis can be described as an accurate estimate of predicted incremental expenditures following reimbursement of the new drug (
19). In the event that the economic committee of the council (CCD) predicts that the costs of a new drug are affordable for the budget of health insurance organizations, this criterion will get 45 points among other criteria.
In Canada, manufacturers appealing reimbursement by public drug plans are necessitated to produce an ample submission about budget impact analysis more over other evidences like the clinical, the burden of illness, the costs associated with the disease, a systematic review of literature, and the cost-effectiveness of the product (
19). Benefits forgone are the economic and equity reasoning for performing budget impact analyses. To state the matter differently, by choosing to draw down the budget in one way, decision makers relinquish other opportunities to use the same resources. In addition, if the target is not to maximize health gains subject to a budget or resource control, but to decrease variance in health gains, budget impact analysis is more useful to the decision maker than cost-effectiveness analysis (
20).
Budget Impact Analysis as an effective, practical financial tool has been introduced to the policy makers for improving drug formulary and reimbursement decision making (
21). However, policy makers do not easily admit that they consider budget impact and are even reluctant to explicitly use budget impact as a formal criterion. A debate would strengthen the theoretical foundation of budget impact as a legitimate criterion in the context of drug reimbursement decisions. Such discussion of budget impact's role will also enhance policy-makers' accountability (
22).
5-Decision of other countries with social-economic status similar to Iran in relation to a new drug’s reimbursement (international reimbursement imitational): this is the first managerial and social criterion for drug admission that got the fifth rank with relative closeness number of 0.358. If a new drug is accepted by health insurances of those countries that have economic and social situations similar to Iran, this criterion will acquire 44 points and if it is not approved by them, it will be deprived from these points.
Most middle-income countries seem to have chosen their peer countries based on global academic representations (e.g., UK, Canada, Australia-not independently from the influence of English-language HTA literature), cultural links, and know-how transfers via international development initiatives (e.g., France, Sweden or, to a lesser extent, the Netherlands) (
23,
24).
Ranking of the remainder of the criteria is shown in
table6. Finally, a new drug that could gain 588 points out of the total of 1176 points from different criteria can be sent with a positive consideration from the CCD of insurer organizations to the HCHI.
Limitations of the study
Admittedly, this study may suffer from some limitations. This study is based on elites and experts’ intuitive decision-makings. Direct access to documents and evidences about prior decisions in CCD was confidential or classified. So, the authors could not find drug dossiers that support or reject the results. Results generalization is limited, because research samplings were mostly from Tehran. Finally, to reason of imperative entering data for all items in TOPSIS method, we had to give 1 as a minimum value for a few items that were non-respond.