DETERMINANTS OF PUBLIC EXPENDITURES FOR MEDICINAL PRODUCTS IN NON HOSPITAL CONSUMPTION IN SLOVENIA

The Slovenian government aims to regulate prices for medicinal products to manage and reduce public expenditures for medicinal products. This paper aims to investigate the association between the regulated wholesale prices of medicinal products and the public expenditures for medicinbal products, and to estimate regression model for public expenditures for medicinal products in the non hospital consumption. In the empirical research are included 758 regulated prices for medicinbal products prescribed by the outpatients’ department on a prescription (Rp) during the years 2003–2010, which are financed from public expenditures. The correlation and regression analyses are used in order to establish the association between the regulated wholesale prices for medicinbal products and the public expenditures for medicinal products. The correlation analysis confirmed a strong positive correlation of the public expenditures for medicinal products with the number of Rp or the number of boxes on the Rp prescription, a weak correlation with the wholesale prices for medicinal products and with the classification lists of medicinal products. The multiple regression analysis confirmed a positive significant impact of the wholesale price of medicinal products and the number of Rp or the number of boxes on the Rp prescription, on the public expenditures for medicinal products. The research has confirmed the association of the public expenditures for medicinal products with the regulated wholesale prices for medicinal products. It has underlined the importance of the rational prescription and use of medicinal products. The explanatory variables included in the regression model for the public expenditures for medicinal products explained up to 94% of variability in the public expenditures for medicinal products.