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They found , on average. The work does acknowledge that hospitals are not routinely paid the entire billed charge but rather a percent of it. However, they further maintain that the evidence supports the higher they charge, the higher they get reimbursed. They return once again to their standard playbook of pointing fingers and blaming everyone other than themselves to try to justify the dramatic increases in the prices of drugs, as they continue to make double-digit profit margins.

With each stakeholder espousing some truth, here is context that will clarify the picture. The reality is there is an entire pharmaceutical industrial complex contributing to the problem. Hidden costs abound within this complicated ecosystem that involves ever expanding cogs in the wheel: To understand the complicated nature of the many profit centers that influence drug pricing, review my ACSH colleague Dr.

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First, he details the many parts of the supply chain and their tethered relationship. Second, he explores the integration and consolidation of the industry as a result of the high cost of research and development for branded manufacturers, compounded by the expensive and lengthy wait times for approval set forth by the U. The refrain of the pharmaceutical industry is that branded drugs take on all the risk and expense; funding the clinical studies and extensive research and development to innovate and permit drug discovery, patent approvals, marketing, etc.

It is true, they do and once those patents expire and the generics can enter the mix, the game entirely changes. Prices tend to go down.

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The company that holds the patents have a limited time to maximize their risk and profits, so they fight often in ingenious ways to extend the life of them. They further contend they must account for their losses when pricing. For every success, they count innumerable failures.

And beyond. Many have tried to figure that out, a study published in JAMA Internal Medicine sought to quantify a standard amount by focusing on new cancer drugs and analyzing the Securities and Exchange Commission SEC filings of the respective companies selected. Read here to understand why cancer drugs might be cheaper to make than previously thought - but, even this effort falls short on precise data.

Often, the gaming of patents is the bigger issue.

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Sign in to complete account merge. Thanks for verifying your email address. Which brings us to the latest play by Intermountain Health which, in consultation with the U. Department of Veterans Affairs VA , formed a new, not-for-profit generic drug company. These activities have resulted in some generic drugs increasing in cost by more than 1, percent in just a few months for seemingly no reason… Many of the well-publicized problems in the U.

These market factors are particularly problematic with older generic medications that hospitals rely on every day to take care of desperately ill patients.

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This new initiative will bring together healthcare systems from around the country to help address these generic drug market failures, providing the new not-for-profit generic drug company with plenty of customers ready and eager for its products. Basically, they are fighting consolidation with consolidation.

What actually trickles to the patient, I will believe when I see it. Amazon-like companies are probably waiting in the wings to take hold of distribution as the possible CVS-Aetna merger shows promise for a stronghold on the information monopoly so vital to controlling the sector. Given that hospitals can barely control their own inventory let alone run a generic pharmaceutical program that will have to be global in sourcing, it is quite suspect that this plan will work. View the discussion thread. Sinai-Beth Israel and St. Vincent's Medical Centers in Manhattan.

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A National Merit Scholar, Dr. At Yale, she was President of the Yale Science and Engineering Association, majored in American Studies and concentrated in media and film, spending her final year researching her senior essay entitled, "Ebola: The Making of an Epidemic"-- exploring the power of the governmental, political, public health and media machines and their desire to work in harmony when there is a common economic concern. In medical school, she maintained various leadership and elected positions such as Editorials Editor of the school paper and editing guides to passing Board Exams while creating mentoring and tutoring programs and spearheading countless volunteer activities that served the school and local Philadelphia communities.

During this time, she did research for the Department of Neurosurgery at the University of Pennsylvania School of Medicine in deep brain stimulation of the subthalamic nucleus of patients with Essential Tremor and Parkinson's Disease. Wells is on the Leadership Council of The Wistar Institute the nation's first independent biomedical research facility and certified cancer center and is a Visiting Fellow at the Independent Women's Forum. She champions empowering others to be their own advocate in healthcare and has given talks to various audiences from struggling expectant mothers and parenting groups to undergraduates, spoken on panels as well as emphasized education to patients under her care.

Believing she wanted to be a brain surgeon, she began her first residency in neurosurgery, ultimately switching fields to pediatrics.