Do Hospitals Actually Mark Up Medications 250%?

A recent report examines the cost differences regarding medications in hospitals. A comparison across two dozen drugs led to the finding that the markup is an average of 250%. Over 30% of the hospitals included in the analysis did not stock biosimilars for the drugs analyzed. Although insurance companies and pharmaceutical companies have frequently been made out as largely responsible for the high cost of medication, this report may mean that hospitals will face closer scrutiny.

“[H]ospitals charged more than five times the purchase price for Epogen, which is used to treat anemia caused by chronic kidney disease for patients on dialysis. And the price for Remicade, a rheumatoid arthritis medication, was raised 4.6 times above the purchase price, according to Bernstein analyst Ronny Gal, who examined newly released pricing data disclosed by 30 hospitals.” Read more here.

(Source: Ed Silverman, STAT News, 1/20/21)