IDFI: prices for medication increased by 64% in 2021 in Georgia

Medication prices increased by 64% in 2021 compared to 2016, the Institute for Development of Freedom of Information (IDFI) has stated in its recent study over the financial performance of the Georgian pharmaceutical sector, hospitals and clinics, as well  government spending on health services.

 

IDFI says that outpatient services have increased by 35%, health insurance increased by 31% in the same period, while inpatient services, which are characterized by relatively lower inflation, have risen by 11% between 2016 and 2021.

 

Per the study, an average household expenditure in the retail pharmacy market and in the healthcare sector was GEL 161 and GEL 96 respectively in 2021.

 

“The monthly expenditure of one family in the retail pharmacy market has increased by an average of 16% over the past five years and amounted to 161 GEL in 2021. Household expenditures on healthcare services are also increasing (+ 7% on average per year) and reach GEL 96.1 in 2021,” said IDFI.

 

The NGO noted that rising prices were partly caused by the COVID-19 pandemic. According to the document, in the first 11 months of 2021, medication prices have risen by an average of 14.6% and inflation in outpatient services averaged 8.7%.

 

The NGO notes that salaries in the healthcare sector have not actually increased in the past five years.

 

The report said that the nominal salary increased by 4.7% between  2016-2021 and averaged 1,108 GEL in 2020, adding that the  purchasing power of the existing salary “has not changed compared to 2015, given the high inflation.”