Excessive and improper use of antibiotics is contributing to the resistance of m

Question

Excessive and improper use of antibiotics is contributing to the resistance of many diseases to existing antibiotics. Consider a regulatory program in Canada that would monitor antibiotic prescription by physicians. Analysts estimate the direct costs of enforcement to be $50 million, the time costs to doctors and health professionals to be $250 million, and convenience costs to patients to be $190 million annually. The annual benefits of the program are estimated to be $360 million in avoided resistance costs in Canada, $80 million in health benefits from better compliance with prescription, and $300 million in avoided resistance costs in the rest of the world.

1.Describe or summarize what you understand the issue to be (5)

2.What do you think should be the objective and sub-objectives? (5)

3.Do you see a rationale for public sector involvement? Explain (5)

4.Discuss the potential benefits? Be comprehensive (10)

5.Discuss the potential cost? Be comprehensive (10)

6.Are there any external impacts? Explain (5)

7.Identify the stakeholders and describe who are the winners and losers? (10)

Explanation / Answer

1. The issue is that excessive use of antibiotics to disease have resulted in lesser resistance of these antibiotics to these diseases. So objective is to reduce the use of antibiotics. So Canadian government is planning to start a program that would reduce the use of antibiotics.

2. Objective - To minimize the use of antibiotics.

Sub-Objective - To minimize the cost associated with the use of minimum antibiotics and to increase the associated benefits.

3. Public sector can play the role of facilitator just to give directions and guide the private firms to take the initiative and help in achieving the objective.

4. The annual benefits of the program are estimated to be $360 million in avoided resistance costs in Canada, $80 million in health benefits from better compliance with prescription, and $300 million in avoided resistance costs in the rest of the world.

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