A review of CMS data on costs at 3,792 hospitals found that on average, hospitals increase the price of medicines nearly 500 percent. (Photo: Shutterstock)
Hospital mark-ups of drug costs—which can be as high as 1,000 percent—is the subject of a new analysis sponsored by the Pharmaceutical Research and Manufacturers of America (PhRMA).
The report, conducted by The Moran Company but commissioned by PhRMA, finds that nearly one in five hospitals in the U.S. mark up medicine prices 700 percent or more. The analysis found that eight percent of hospitals marked up some medicine prices more than 1,000 percent.
“Hospitals receive billions of dollars every year in negotiated and mandatory discounts from biopharmaceutical companies while simultaneously increasing the price of these medicines to insurers and patients,” said Stephen J. Ubl, president and chief executive officer of PhRMA. “In order to make medicines more affordable for patients, we must address the role hospital markups play in driving up medicine costs.”
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