Economic Impact of Generic Drug Utilization: A Global Review of Cost-Benefit Analysis in Healthcare Systems

Abstract

Generic drugs have become a central component in reducing healthcare expenditure across the world while maintaining comparable therapeutic efficacy to their branded counterparts. This review assesses the global economic impact of generic drug utilization, particularly through cost-benefit analyses in different healthcare systems (low-, middle-, and high-income countries). It explores how adopting generic medicines has affected healthcare costs, patient access, and hospital savings in these contexts. Further, the paper highlights how these global trends and best practices can be applied to tertiary care hospitals in Uttar Pradesh, India, to maximize cost-effectiveness and improve patient access to medicines. The review reveals that, while generic drug adoption has proven successful in reducing costs, challenges such as regulatory issues, patient perception, and healthcare provider acceptance remain significant barriers to broader implementation. Recommendations include policy interventions, awareness programs, and incentives to increase generic drug utilization in tertiary care settings.