Term: Cost Driver

Glossary Definition

Last Updated: 2005-11-21

Definition:

A component that significantly influences annual changes in pharmaceutical spending in a province (for example). Major components that annually drive up pharmaceutical costs include changes in the use of older and newer drugs, price changes of older and newer drugs, and the introduction of new drugs in specific therapeutic classes or for disease groups.

References 

• Metge C, Kozyrskyj A, Dahl M, Yogendran M, Roos NP. Pharmaceuticals: Focussing on Appropriate Utilization. Winnipeg, MB: Manitoba Centre for Health Policy, 2003. [Report] [Summary] (View)