An analysis of drug prices in Turkiye within the framework of healthcare pricing models

Price is one of the fundamental mechanisms that determine the value of a good or service in economic systems. Under conditions where the market is competitive, transparent, and information flows freely, prices are the main factor that optimizes resource allocation. Price formation cannot be effectively determined, particularly in market structures characterized by high uncertainty, complex cost structures, and intense regulatory intervention. Healthcare services have a structure that differs significantly from classic market conditions due to imperfect competition. Therefore, the price mechanism does not function fully effectively in the healthcare sector. The labor- and technology-intensive nature of healthcare services, information asymmetry, inelastic demand, and dependence on public financing distinguish price formation in this field from other markets. These unique dynamics necessitate the development of various pricing models in the healthcare sector, such as cost-based, regulation-based, or insurance-based models. Drug pricing is a fundamental factor in the healthcare sector that determines both patients' access to treatment and the financial sustainability of the healthcare system. Pricing strategies in the pharmaceutical sector are critically important because they directly determine patients' access to treatment and the sustainability of public health expenditures. Furthermore, these strategies support the development of innovative drugs and the sector's competitiveness by financing high-cost R&D activities. This study theoretically examines pricing models used in the production and provision of health goods and services. Considering the parameters affecting drug pricing, the factors determining prices for different drug groups in Turkiye were analyzed. The logistic quantile regression method was applied to identify the factors affecting drug prices in Turkiye. The dataset used in the research consists of basic information on 3,565 drugs obtained from the Turkish Pharmacists Association. The variables affecting drug prices were determined as whether the drug is original or generic, its imported/domestic status, the number of equivalent drugs, shelf life, and the public discount rate. The analysis results revealed that the public discount rate and whether the drug is imported are the most powerful factors in determining drug prices across all systems. The number of equivalent drugs was found to have a partial downward effect on prices. Factors such as originality and shelf life were found to have more limited effects. The findings provide a comprehensive, empirically supported framework for understanding pricing processes in health goods and services, based on a comprehensive data analysis of the Turkish drug market.