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Money and Drugs in North Carolina

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Wednesday, 26 September 2012 04:39

The Raleigh News and Observer has a nice piece on how the large hospitals in the state make big profits on chemotherapy drugs. Yes, this is the sort of thing one expects when the government grants patent monopolies. Where are the foes of big government?

[Correction: I had earlier identified the paper as the Charlotte Observer.]

Comments (3)Add Comment
...
written by Last Mover, September 26, 2012 5:48
Was this policy sponsored by the Right to Life Movement at Any Price?
Big hospital chains can command big profits. Who'd a thunk it?
written by Rachel, September 26, 2012 8:25

"By consolidating into large systems, hospitals have gained leverage to negotiate higher payments from insurance companies." ...

So the two big North Carolina hospital systems have bought control over some 400 private cancer doctors. That's most of the oncologists in their vicinity. And now they can charge much more.

It's a pity that the people who wrote the health reform act, the "numbers wizards" (to quote the rapturous description of Catherine Rampell), apparently did not know enough about health economics to conceive of this possiblity.

Yes, nice article.
...
written by RC, September 27, 2012 2:34
The piece is in the Raleigh News & Observer, not the Charlotte Observer.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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