Estimating Pharmaceutical Expenditure Using The System of Health Accounts 2011 Framework

Spending on pharmaceuticals is a large proportion of expenses on health, representing 5-50% of total health spending in low-and middle-income countries. Accurate data on pharmaceutical spending are necessary to guide government and health system managers decision making on issues such as resource allocation and strategic purchasing. However, thorough pharmaceutical expenditure data is not readily available or left out of health expenditure estimates. This resource, developed jointly by USAID MTaPS and LHSS, aims to increase the capacity of stakeholders by suggesting indicators that countries can use to track pharmaceutical expenditures. The resource presents context on the importance of financing for pharmaceuticals and accuracy in capturing expenditures for pharmaceuticals.