Americans pay the price.
Earlier this month, I posted two articles on Big Pharma, back to back. The first one was my classic approach: How PE Firms Are Flipping Drugs in Price-Gouging Scheme that Cannibalizes the Entire US Economy (with 109 great comments).
The second one was coincidence. The digital ink wasn’t dry on the first article, when its was revealed that the Justice Department was getting antsy: “More than a Dozen” Drugmakers under Criminal Investigation for Price-Fixing, Shares Plunge, after Getting Crushed All Year (56 great comments).
But as always, there’s more to it. Here are some hard numbers from a different angle that shed a lot of light on how the industry works.
Transparency in the pharmaceutical industry is long overdue – but thanks to a new law, these companies are now required to disclose payments made to doctors, teaching hospitals and to various other companies.
The result? A total of $3.49 billion in disclosed payments have been released. TheLawFirm.com created the below infographic to share how much money was paid to:
- 681,020 doctors
- 1,135 teaching hospitals
- 1,565 companies
How do these companies spend?
U.S. doctors received the bulk of payments from big pharma. The highest earning doctors practiced family medicine, pediatric critical care, orthopedic surgery, cardiovascular disease, and neurological surgery.
These companies also made payments to institutions training to next generation of doctors. Big pharma paid a total of $361 million to the City of Hope National Medical Center, followed by payments to hospitals in Denver, Cleveland and Rochester, as well as The General Hospital Corporation.
The highest spender is Genentech Inc.
The disparity between funding in marketing and research and development for the most common household drug names, such as Johnson & Johnson and Pfizer, is as much as double the difference.
Americans pay the price
Americans currently spend more per capita on prescription drugs than any other country in the world. In 2014, Americans spent a total of $374 billion on prescription drugs. In 2015, The Kaiser Health Foundation reported that the average American adult has more than 12 prescription drugs per capita – and this number rises to 27 for seniors.
Check out the below infographic to learn more about the power and influence of big pharma on the health of Americans, and to see how a “conservative prescribing” approach can help resolve this problem.