Economic aspects of the online drug trade
Mag. Dr. Wolfgang Schwarzbauer
Chief Financial Officer and Chief Human Resources Officer, Head of Regional Economic Policy and Foreign Trade Research
Prof. Dr. Monika Köppl-Turyna
Director
In a recent study commissioned by Redcare Pharmacy/Shop Apotheke, EcoAustria examined the economic impact of online drug sales in Austria. The results show that digital distribution channels not only facilitate the supply of medicines, but also bring considerable economic benefits.
In rural regions in particular, the population faces considerable challenges when it comes to access to medicines. Past analyses show that around 296,000 people need more than ten minutes to drive to the nearest pharmacy - this is a problem that will become even more acute in the future. In addition, the number of people over the age of 65 is growing, while the number of pharmacies is not increasing at the required rate.
In view of these challenges, online drug retailing not only offers valuable relief, but also proves to be a positive driver for the economy as a whole. According to the study, the time saved by not having to travel to the store adds up to around 5.5 million hours per year. If this time saved is converted into productive working hours, household income in Austria increases by 82 million euros per year. The state benefits annually through additional tax and duty revenues of around 59 million euros. Overall, this results in an economic benefit of around 141 million euros - and that's just for people with a commute of more than 10 minutes to the nearest pharmacy. If you also take into account those people who already have a pharmacy nearby but save time by buying online, the overall benefit to society rises to an impressive 620 million euros per year.
In addition to the time saved, opening up prescription sales to online pharmacies will have further positive economic effects on the healthcare system as a whole. Improved drug dispensing and closer monitoring of intake, for example, could reduce errors in the use of medication and lower healthcare costs in the long term. Chronically ill people should be able to receive regular consultations through telepharmacy services, reducing emergency treatment and hospital stays. Last but not least, telepharmacy and telemedicine provide a boost for health IT and technological innovation.
