Sweden has started paying drug companies a flat annual 'salary' for antibiotics, no matter how many prescriptions they actually sell.
This 'Netflix-style' subscription model solves a major market failure where companies stop making life-saving antibiotics because they aren't profitable enough. By decoupling profit from sales volume, the government ensures a stable supply of drugs that we ideally want to use as little as possible.
Implementation of a novel reimbursement model for new antibiotics of special medical value
SSRN · 6434216
Background: New economic models are needed to improve availability of antibiotics, especially in small countries considered unattractive by pharmaceutical companies due to market size. Sweden is one such market, and to increase availability of antibiotics The Public Health Agency of Sweden (PHAS) has piloted a new reimbursement model designed to ensure availability of prioritized antibiotics.Reform content: The new reimbursement model, which targets new antibiotics for difficult to treat gram ne