2/26/11

For-profit health care: real costs or super-profits?

OCHU has repeatedly flagged the role of for-profit providers in driving up the costs of health care, and more often than not, the main offender is transnational pharmaceutical drug companies.


Supporters of these corporations have often justified the expense of their drugs by citing  research and development costs.   $1.32 billion per drug is often bandied about


So it is interesting to see Andre Picard's review in the Globe and Mail of a  study that examined these, alleged, costs.  Picard reports that the study suggests a more realistic cost (after accounting for things like the true cost of financing, government tax subsidies, and public support via basic research from government and university labs) might be closer to $59.4-million.  


That's quite a difference.  The actual costs are 4.5% of the amount claimed by the supporters of this for-profit industry.


So, where does all that money we spend on drugs go?


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