I'm sure we all know that in order for a pharmaceutical company to stay in business, it needs to make a profit. The way a pharmaceutical company makes a profit is by increasing drug prescriptions. It actually depends on who you talk to find out when drug prices were actually increasing.
Some claim that the U.S. “health care cost crisis” didn’t start until 1965.
The government increased demand with the passage of Medicare and Medicaid while restricting the supply of doctors and hospitals. By 1968, these new government programs had caused healthcare-related spending nationwide to skyrocket and to become a major political concern.
Others claim that it was not until 1991.
A time of intensified scrutiny by policymakers didn't happen until 1991.
That was when the American Medical Association (AMA) issued ethics guidelines addressing pharmaceutical marketing and industry gifts. Since that time, attention to pharmaceutical marketing has surged as marketing has intensified and drug prices have risen. In response, the Pharmaceutical Research and manufactures of America (PhRMA) issued voluntary guidelines in 2002. while the AMA published addenda to their original guidelines around the same time.
Under both guidelines, gifts valued less than $100 are allowed if they primarily entail a benefit to patients or are associated with a physician's practice. Meals for physicians are acceptable, if they are modest and are provided in association with an educational component.
The code states that gifts worth $100 or less may be given only if they are directed at patient education or other patient benefit , according to the Journal of the National Cancer Institute (JNCI). What that means is an anatomical model or toothbrushes or medical supplies, such as a first responder kit or sphygmomanometer are OK, but VCRs and golf clubs are not. If a presentation and discussion that provides valuable educational benefit, a modest meal can be offered.
Attempts to control drug prices in the United States is backfiring.
It all sounds reasonable, but a company has to make money. If they have to reduce something to survive, they will. They would rather not reduce quality or employees, so what is there for them to do. Whenever the government sets prices, rules and regulations, it has predictably led to reduced quality and rationing. Moreover, the bureaucracy has brought standardized care, higher administrative costs and high executive salaries.
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