Causes And Effect Of The Pharmaceutical Growth Challenges Of Pharmaceutical Acquisitions Into Focus

1037 Words Jul 9th, 2016 null Page
There are some cause and effect relationships growing out of the pharmaceutical growth challenges as well as the challenges in the distribution of healthcare professionals. Drastic price increases and the increasing cost of the polypharmacy required for chronic conditions in our population has caused and increased focus on pricing of pharmaceuticals. Public cases, such as the Turing Pharmaceutical/Daraprim scandal involving what many view as price gouging, have brought the question of increased regulation of pharmaceutical acquisitions into focus (Traynor, 2016). One solution that has been brought up as a result of these shortages and price increases is the practice of reference pricing.
Reference pricing, which is a cost control mechanism that places reimbursement caps on medications typically based on class of medication, is common in many other countries with government provided health insurance/health care coverage (Salter, 2015). While this practice has been beneficial for other countries financially in terms of cost control, there are some concerns. For one, many of these pharmaceutical companies have relocated from these countries to the U.S. where aggressive cost controls like reference pricing don’t exist (Williams & Torrens, 2008). This leads to a situation where advances in pharmaceuticals appear to be subsidized by the U.S. consumer who up to this point has funded much of the recent expensive R&D costs related to pharmaceutical improvements and new treatments.…

Related Documents