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German budget abolition law raises further economy questions

This article was originally published in Clinica

Executive Summary

"The actual expenditure in the pharmaceutical sector rose by 9.7% in the first quarter of this year, compared with the same period last year. This is a matter for concern." These were the words of German health minister Ulla Schmidt at the first reading of the law to abolish the pharmaceutical and wound care budget the Arznei-, Heil- und Verbandsmittelbudget (ABV budget). She stressed that Germany could no longer depend upon budgets to control spending in the health system. She pointed to the last quarter of 2000 when pharmaceutical expenditure had gone 9% over budget. "This proves there is no security in budgets or in collective responsibility. Now is the time to negotiate with the independent bodies of the health service," she added.

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