Perceptions from pharmaceutical stakeholders on how the pharmaceutical budget is allocated in South Africa
Abstract
Background: South Africa faces a heavy burden of disease, which impacts resource allocation. The needs of South
Africa require efcient translation into pharmaceutical expenditure for medicine provision, to ensure availability of
medicines. Given that South Africa faces various challenges with medicine provision accompanied by rising pharma‑
ceutical expenditure, this study aimed to report on the considerations and methods used to determine the healthcare
budget for South Africa, and how it is translated into pharmaceutical expenditure for medicines provision on the
Standard Treatment Guidelines and Essential Medicines List and non-essential medicines in the public sector.
Method: Qualitative, semi-structured interviews guided by a discussion guide were conducted with seven phar‑
maceutical ofcials involved in the budget and resource allocation process, between October 2019 and March 2020.
Interviews were recorded and transcribed verbatim. Once the interviews were coded by the frst author they were
verifed by the other authors. Data were thematically analysed.
Results: This study depicted the knowledge and participation of pharmaceutical services in the budget process. The
National and Provincial Department of Health have improved pharmaceutical budgeting by making strides towards
a collaborative, informed, and more evidence-based approach. Pharmaceutical services have roles in advising on
requirements; commenting where necessary, constantly monitor and taking accountability for their budget. The main
considerations that determined the budget included population size and growth, historical expenditure, the extra
heavy burden of disease and incidence rate, demand data and forecasting. The local and provincial pharmacy and
therapeutics committee play a vital role in monitoring the budget and expenditure; ensuring adherence to guide‑
lines; controlling the extent to which non-Essential Medicine List items are used and advising accordingly.
Conclusion: This was the frst study to report on the decision and thought processes of the healthcare budget and
its translation into pharmaceutical expenditure for medicine provision in South Africa. Many factors were considered
to inform the budget, with the Standard Treatment Guideline and Essential Medicines List being the principal guide
for medicine provision. This process was well-controlled and monitored by the pharmaceutical therapeutics commit‑
tee. Documenting the South African experience can assist other countries in their budget decisions for medicines