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edited by AIFA’s Office of Osmed and HTA


A compulsory transfer of money from private individuals, institutions or groups to the government. It may be levied upon wealth or income (direct taxation) or in the form of surcharges on prices (indirect taxation). It may be paid to the central government (central taxation) or to the local government (local taxation). Taxation is one of the principal means by which a government finances its expenditure, including health care systems. [Source: Penguin Reference. Dictionary of Economics]
A taxonomy in general is a classification method of elements in groups or categories. Such groups have to be determined and defined according to the characteristics of the elements of the taxonomy and the objectives of the taxonomy. The PHIS taxonomy provides a framework for a set of indicators to analyze and compare the performance of pricing and reimbursement policies.
Any formal and competitive procurement procedure through which tenders/offers are requested, received and evaluated for the procurement of goods, works or services, and as a consequence of which an award is made to the tenderer whose tender/offer is the most advantageous. [Source: African Development Bank Group – Glossary of procurement terms] See also: procurement methods
Services provided by highly specialised providers (e.g. neurosurgeons, thoracic surgeons, intensive care units). Such services frequently require highly sophisticated equipment and support facilities. The development of these services has largely been a function of diagnostic and therapeutic advances attained through basic and clinical biomedical research.
The effect conveyed on a patient following administration of a pharmaceutical which either restores, corrects or modifies a physiological function(s) for that patient. [Source: PPRI Glossary]
Two pharmaceutical products are considered to be therapeutically equivalent if they are pharmaceutically equivalent or pharmaceutical alternatives and after administration in the same molar dose, their effects, with respect to both efficacy and safety, are essentially the same when administered to patients by the same route under the conditions specified in the labelling. This can be demonstrated by appropriate bioequivalence studies, such as pharmacokinetic, pharmacodynamic, clinical or in vitro studies. [Source: WHO. MultiSource (generic) pharmaceutical products: guidelines on registration requirements to establish interchangeability]
Group of medicinal products according to their indications of use. [Source: UNI ENV 12610 Medical informatics. Medicinal product identification]
The practice of using the price(s) of similar products (ATC 4 level) or with therapeutical equivalent treatment (not necessarily a medicine) in a country in order to derive a benchmark or reference price for the purposes of setting or negotiating the price or reimbursement of the product in a given country. [Source: adapted from PPRI Glossary]
Public or private organisation that pays or insures health or medical expenses on behalf of beneficiaries or recipients. Recipients pay a premium for this coverage in all private and some public programs of social insurance, while the system is supported by general taxation in the National Health Services. The payer then pays bills on behalf of covered individuals, which are called third party payments. They are distinguished by the separation among the individual receiving the service (the first party), the individual or institution providing it (the second party), and the organisation paying for it (third party).
A tissue bank or a unit of a hospital or another body where activities of processing, preservation, storage or distribution of human tissues and cells are undertaken. It may also be responsible for procurement or testing of tissues and cells. Tissue establishments shall keep a record of their activities, including the types and quantities of tissues and/or cells procured, tested, preserved, processed, stored and distributed, or otherwise disposed of, and on the origin and destination of the tissues and cells intended for human applications. They submit to the competent authority or authorities an annual report on these activities. This report shall be publicly accessible. [Source: Directive 2004/23/EC of the European Parliament and of the Council of 31 March 2004)
Traceability is the ability to track forward the movement through specified stage(s) of the extended supply chain and trace backward the history, application or location of pharmaceutical products. External traceability takes place when instances of a traceable item are physically handed over from one traceability partner (traceable item source) to another traceability partner (traceable item recipient). Internal traceability takes place when a traceability partner receives one or several instances of traceable items as inputs that are subjected to internal processes, before one or several instances of traceable items are output. [Source: GS1 Standard Documents]
The buying and selling of a product on terms mutually agreed by the buyer and seller. [Source: EUROSTAT-OECD. Methodological manual on purchasing power parities]
Directive 89/105/EEC (of 21 December 1988) relates to the transparency of measures regulating the pricing of medicines for human use and their inclusion in the scope of national third party payers. [Source: PPRI Glossary]
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