Monday, December 5, 2011

I came across an interesting opinion article written in the Wall Street Journal by a physician who consults and invests with drug marketers. One of the causes of the shortage is that there is little incentive for companies to produce old generic drugs (specifically IV drugs) because there is a narrow profit for the manufactures. He points blame at the price caps that Medicare will pay for these drugs, so the companies cannot markup their price. While I do understand this argument, I am not sure that it is in the best interests of patients to open up the price market completely for these drugs. This could lead to a slippery slope of the costs of drugs continuing to rise and patients having no other choice, but to buy at that price. I do agree that there needs to be an incentive for companies to produce the less profitable drugs, but I fear that generic drugs could reach price ranges that defeat the purpose of their existence. Unfortunately the production of drugs is a business and very much run that way; even if it is at the cost of patient's lives.

2 comments:

  1. Rachel,
    I agree an interesting viewpoint on the drug shortage. I was unable to go to the article with the link.
    Sue

    ReplyDelete
  2. Hey Rachel,
    I tried to open the article as well and the link did not work. But I agree on what you are saying in that there has to be some incentive for companies to make the generics. Honestly now adays I feel like this is what most people are on because of the cost and if companies stop producing these medications it will send the medical field into a frenzy!

    ReplyDelete