Lowering Healthcare costs

Every year the cost of providing healthcare spirals, necessitating reconsideration of budgetary allocations from the government. This phenomenon is seen worldwide and is largely driven by the pharmaceutical industrial players.

The pharmaceutical companies defend this escalation as inevitable due to escalating cost of research and development of new drugs. Thus, newer and more advanced medications are usually extremely costly, and remain so, until the patent expires and generic drug companies scramble to reproduce these medications.

Is research spending limitless? How can we bring healthcare costs down?

The major challenge for the pharmaceutical industry is to bring the cost of research down. Failure to do so will result in the inability of many underdeveloped and developing nations in meeting the healthcare needs of their citizens. This will result in a humanitarian catastrophe.

One thought on “Lowering Healthcare costs

  • April 30, 2011 at 1:27 am
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    whatever you do, don’t be like the Americans relying on so called “Health Insurance” as a societal “safety net”. It is best for doctors and the health industry to charge the patient directly. If doctors overprice their services, they can sit idle as patient demand drops. Let straight supply and demand prevail.

    Insurance in health induces a dangerous intermediation between buyer and seller. the owner of health insurance feels induced to over use medical services because “they’ve already paid the premium, so why not”. Doctors, who are used to negotiating their fee now with insurance companies begin to over charge for their services because of the financial intermediation of the insurance co. acts like a TAX: spreading the fee increases among all its insured.

    This is the basis for upward vicious spiral in health costs all to the plundering profits of the insurance companies who rely on actuarial double-billing in their underwriting model to take even higher premiums from small less powerful customers. LEARN FROM THE FAILURES OF US. their system is a nightmare.

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