Why The Drug Price Markup In Hospital

Look at the salary of the drug company executives. The money has got to come from somewhere.

For one thing, sales of drugs to patients will cover the entire costs of the pharmacy profit center, whether it is working at capacity or not. The same is true, of course, for dressings and all other supplies. The situation is much as if you took your car to a two mechanic shop and your bill reflected the concept that both mechanics had to be paid whether they were working or not. In other words, all costs are recovered. Hospitals hew to this line quite closely.

The other fact is that the ER is run to make a profit. One of the few areas of a hospital that can actually make a profit.

Cost accounting takes all costs of indirect departments and associates them to direct departments. Hospitals have massive amounts of costs for equipment and supplies that must sit there and age, eventually being replaced - but seldom used.

These costs are "spread" to departments that move fast, are needed right now and are willing to be bought at "all costs" because I "need it". Of course, one must get that profit added in also.

Never fill a prescription in a hospital - ask for an itemized bill and see how much you pay for a bandage - could have bought a whole box! Also, insurance will readily pay these costs!

I didn't fill my Rx in the Hospital. The ER MD gave me the 2 tabs to take home, since it was too late at night to get an Rx filled at Walgreens.

I did receive an itemized bill and you're right , the insurance paid for everything. Treatment in ER and follow up with plastic surgeon cost close to $700.

However, you (me and everyone) do pay our escalating rates, also. But, what is it worth - that is to be one of the biggest debates that must be decided over the next few years -

Are we willing to pay the costs, or do we eliminate the costly, single purpose, high cost equipment and drug storages, duplicity of services and other extravagant overheads -

This is but one of many questions, but - the USA has the #1 health care in the world - still mistakes happen, I pray for that little girl at Duke, her mom and dad; and the attending surgeon. God be with them!

Jiminy Christmas - I did not even mention the horribly fast rising administrative costs - multiply 6 digits paid administrators (some 7 now), PR, constant expansion, and the ever popular liabilty insurance -

Wow, there are all of a sudden expanding costs in those two pills - maybe they were cheap considering!!!!!

Basically, I was happy to get the med. No sleep in 24+ hours, due to pain. The $$ for the meds from the ER was worth it.

BillW, That's called "overhead" in accounting jargon.
NH, There's an article in today's San Jose Mercury News about the high cost of medical care in our area. A lady went to the emergency room, and her bill came to over $1,200 of which $435 was the visit to the emergency room. She's being charged $96 for some medication she claims she never received, and she waited eight hours before she was seen by a physician. Things are looking pretty bad on the home front, but our president is more interested in fighting this war with Iraq that will cost the taxpayers billions upon billions - while our citizens continue to suffer. c.i.

I work in insurance in Canada and see lots of hospital bills from both sides of the border. We routinely give the bills to the claimants to confirm they received the billed treatment (it's amazing how much they didn't) and to companies in the U.S. that evaluate the bills for reasonableness and necessity. Getting a bill for an ambulance that the claimant refused to get into just about sent me into orbit - there was clearly no reason for an ambulance to be called in - the claimant and his employer encouraged us to go after that denial.

ehBeth, Since you still seem to be a member of planet earth, what can the patient do to help reduce the cost of medical care - from your perspective? How can we battle the service provider and employer under such circumstances - without endangering our jobs? c.i.

There are many patients in the ER waiting room, who should really not even be there. They have dirty contact lenses, runny noses, sprained ankles...etc.

They need to get insurance and find a PCP and stay out of the ER.

Way to go, Beth. It is infuriating to watch your insurance pay off on what you know is a bogue claim.

New Haven, Very good idea, but how can it be implemented? Put a sign up in the Emergency Room: "YOU WILL BE CHARGED $1,500 FOR MINOR MEDICAL CARE." "Minor includes, but not limited to: dirty contact lenses, runny noses, sprained ankles...etc. " c.i.

Sounds good to me!