One in five hospitals in the U.S. mark up the price of medicines by 700 percent or more, according to a study conducted by the Moran Company.
The PhRMA-commissioned study analyzed total costs and charges for all medicines at 3,792 facilities using data from the Centers for Medicare and Medicaid Services.
Among other things, according to PhRMA, the study found that:
- Hospitals on average spiked prices about 500 percent;
- About eight percent (320) of the hospitals in the study posted 1,000-plus percent markups.
“For hospitals, higher charges are associated with greater profitability,” according to a PhRMA report. “These markups lead to higher costs for everyone – patients, employers and payers.”
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