More competition in the healthcare industry (specifically, among hospitals and other healthcare facilities) to drive down costs would be nice. Ironically, many of these consolidations were probably at least partially predicated on the promise of greater operational efficiencies due to scale. According to the panel, however, whatever cost savings they achieved apparently aren't being passed on to those using (or paying for) their services. As for pharmaceuticals, I'm less sure as to whether increased competition is as effective. According to one study, the median cost to bring a drug to market is around $1 billion. This is quite a barrier to entry for would-be competitors. Also, these staggering amounts have to be recouped somehow for these companies to remain viable. The question then becomes, "How do you bring down drug prices without ruining the incentive and resources needed to develop new therapies?" Ultimately, it seems government will have to play an even greater role to bring drug prices under control without stifling innovation.
More competition in the healthcare industry (specifically, among hospitals and other healthcare facilities) to drive down costs would be nice. Ironically, many of these consolidations were probably at least partially predicated on the promise of greater operational efficiencies due to scale. According to the panel, however, whatever cost savings they achieved apparently aren't being passed on to those using (or paying for) their services. As for pharmaceuticals, I'm less sure as to whether increased competition is as effective. According to one study, the median cost to bring a drug to market is around $1 billion. This is quite a barrier to entry for would-be competitors. Also, these staggering amounts have to be recouped somehow for these companies to remain viable. The question then becomes, "How do you bring down drug prices without ruining the incentive and resources needed to develop new therapies?" Ultimately, it seems government will have to play an even greater role to bring drug prices under control without stifling innovation.