How much are hospitals marking up the price of medicines?


PHARMA tries to shoot back. See it’s not our fault! 

Medicine is vast ecosystem of bizarre pricing, cronyism, government mandates, and anti-market policy.


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.

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