Quote:
Originally Posted by 54ny77
why does health care cost so damned much?
here's an example: pal of mine worked on a drug for 20+ years, company has invested mind blowing amounts in it (10 figures).
that means zero revenue for 20+ years. huge operating costs. expensive, well-educated and smart employees dedicated to getting that thing to market.
and it still ain't done. literally some folks on the project have retired in the interim.
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Actually, prescriptions are only 10.1% of the total pie. The yoy% increase is only 1.2%. Believe it or not, prescription drugs are almost a bargain in U.S. healthcare. YOY% increase for hospitals and physicians was 4.9%. This is the largest driver of healthcare costs. It's also 50.8% of the total pie.
Hospital concentration is a large driver of cost increases. In markets where mergers took place to increase concentration and limit competition, price increased at 20%. Maximizing the revenue stream so to speak.