How much are hospitals marking up the price of medicines?
The answer may surprise you . . .
According to a report by Robert Zirkelbach on October 17, 2017 from http://catalyst.phrma.org
"Hospitals mark up medicine prices, on average, nearly 500 percent, according to a new analysis from the Moran Company that was commissioned by the Pharmaceutical Research and Manufacturers of America (PhRMA). The analysis of 20 medicines also found the amount hospitals receive after negotiations with commercial payers is, on average, more than 250 percent what they paid to acquire the medicine. This means a hospital is paid two and a half times what the biopharmaceutical company, who brought the medicine to market, receives. This hidden threat to affordability is a driver of higher cost sharing and premiums for patients across the country.
While hospital markups lead to higher costs for patients, employers and payers, these markups are often overlooked in conversations about medicine costs. As the provider market continues to become more concentrated and the number of medicines being administered in hospital-owned facilities is growing, the amount hospitals mark up medicine prices needs greater scrutiny. "
We welcome conversations about costs, but we need to take into account the entire biopharmaceutical supply chain, including the impact hospital markups have on access and affordability of medicines.
View the full analysis here.
View the analysis infographics here.
Learn more at www.LetsTalkAboutCost.org.
Discussions about costs are important. No patient should have to worry about whether they can afford the care they need. At the same time, it is important to look at costs across the health care system and not just the share going toward life changing medicines.Explore our graphics and videos below to learn more. http://www.phrma.org/media/cost-and-value-of-medicines
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