Re: The Bull*** Parade

From: Bob (this one) (Bob_at_nospam.com)
Date: 08/07/04 

Date: Sat, 07 Aug 2004 18:08:50 -0400

Dr. Andrew B. Chung, MD/PhD wrote:

> Lost in this is the simple fact that the rising healthcare costs in
> the U.S. predate the recent war on Irag and current actions against
> with Al-Qaida. We have been paying for R&D of medical technologies by
> these for-profit companies by letting these companies thrive on U.S.
> soil. It seems the Canadians are unabashedly eating the fruit without
> being willing to contribute to either fertilizing or watering the
> trees.

Given that most major pharma companies aren't American-owned and that
the entire rest of the world pays less for meds, it's a funny picture
that emerges. It shapes up as more political than economic. For some
reason, the medbiz puts out the line that Americans are doing the
right thing by paying these high prices but others are somehow
shirking their responsibilities by not agreeing to pay the same.
Research is being done in Canada even as we speak. Their med prices
are considerably lower and, somehow, the pharms are still in business
there and still competing hard with each other. Can anyone believe
that they lose money everywhere but the US? Or just break even? Seen
any annual reports from pharms lately?

The other tired mantra from them is that if we buy meds from Canada,
there's a safety issue. Does that mean that the pharms take less care
with Canadian meds? Less what? Sterility? Purity? Care in handling?
Outdated ingredients? If it's so, why haven't Canadian medical
professionals spoken out against this condition? Could it be that
there's no issue? When I was in Toronto a few weeks ago, I raised the
question with some medbiz folks who laughed. One said, "It's
commercial propaganda from the large companies, that's all. The meds
are the same."

Pharms are consistently among the most profitable businesses of any
kind. Period. They're vast multinationals making unheard of profits.

The other really significant variable is advertising. Nowhere else do
the pharms do anywhere near as much advertising of prescription drugs
direct to consumers as happens in the US. Advertising is expensive.
Very expensive. Adds significantly to the cost of meds. And they're
still hugely profitable.

Rising healthcare costs in the US are the highest and fastest rising
costs (with essentially no new variables) in our domestic economy. And
they happen across the board with all components in the medbiz system.

I paid $105 for an injection for my daughter in a hospital that cost
$29 in a doctor's office. Or rather, my insurance paid it. I would
have paid $135 if I had paid it myself. Hospitals charge people who
pay in cash more than they do if insurance pays for it. They justify
that by saying that since insurance companies buy more medical care
for their insureds, they should be given a discount. But they're
buying it one person at a time, case by case, in fact no different
than one customer buying medical care for himself. Same or, most
likely, less paperwork for the individual purchaser. Less
administrative time. It should be cheaper for the paying customer; not
more expensive.

The other great reality is that the pharms aren't doing the basic
research on new meds. It's coming mostly from universities and
scientific companies not in the pharm business. The pharms buy or,
more often, just take over the development process after it shows some
promise for relatively large sales. And that's the only key for them.
That's why there are many diseases and conditions that will never be
investigated by the pharms and no meds or treatments developed.
Markets too small. Not profitable enough.

Some years back, an acquaintance was in sales for a scientific supply
company. He showed me a couple centrifuges he had in the trunk of his
car. One was that speckly gray that all the equipment in our college
labs were. The other was white. I asked what the difference was. He
said the paint and the price. I looked confused. He said the gray one
was for a school and the white one was for a hospital. The white one
was priced twice as high. "Professional equipment," he said. And laughed.

Pastorio