PBS Planning: Modelling and Implications

Abstract

In the previous chapter, a cost benefit analysis of six medications was performed- That exercise was useful in providing information in decision-making about listing individual medication on the Pharmaceutical Benefit Scheme (PBS) in Australia. However, a realistic exercise of health programs evaluation should also be in the form of proactive health sector planning. In health sector planning, a set of health programs is chosen from alternatives to be financed by the available budget. In this chapter, we develop a PBS sub-sector planning. We apply the new³ cost benefit analysis developed in Chapter 3 to sub-sector planning of PBS (we call it PBS planning), and discuss the implications of PBS sub-sector planning in selecting a set of medications for PBS listing that can maximise health and social welfare of the society.