High Drug Prices Pinching Hospitals’ Wallets Too
It's not just consumers who are suffering from the price spikes on drugs. Hospitals are struggling to adjust to unexpected hikes as well, according to a new survey.
Stat:
Hospitals Are Taken Ill Over Rising Drug Prices
The rising cost of medicines is making some hospitals feel ill. While much of the attention over prescription drug prices is focused on consumers, a survey released on Tuesday finds that hospitals are also spending much more than in the past. Between 2013 and 2015, drug spending for patients who stay in hospitals increased by an average of 23.4 percent annually, from $5.2 million to $6.5 million. And on a per admission basis, hospital spending on drugs jumped nearly 39 percent, to $990. (Silverman, 10/11)
Kaiser Health News:
Hospitals Say They’re Being Slammed By Drug Price Hikes
Inpatient drug spending increased by 23.4 percent annually from 2013 to 2015, compared with 9.9 percent annual increases on retail drug spending during the same period, according to a new report by National Opinion Research Center (NORC) at the University of Chicago, which was commissioned by the American Hospital Association and the Federation of American Hospitals. Spending was driven by increases in drug unit prices rather than an increase in the volume of drugs used, they found. (Lupkin, 10/11)
Politico Pro:
Survey Points To Hospital Drug Spending Spike
Hospital spending on drugs for inpatients jumped by more than 23 percent from 2013 to 2015, and more than 90 percent of hospitals said price increases are straining their budgets, according to an industry-funded report released Tuesday. The report, commissioned by two hospital trade groups, found that hospitals' drug spending far exceeded the 9.9 percent growth in retail pharmacy spending over the same time. (Norman, 10/11)
Modern Healthcare:
Drug Price Hikes May Be Hitting Hospitals Harder Than Consumers
The study's authors determined that, for most drugs, spikes in cost drove spending increases, rather than more people using drugs. The authors said the reasons why manufacturers have chosen to raise prices varies and isn't always clear, but can come from changes in ownership or shortages. (Rubenfire, 10/11)
The Washington Post:
Hospitals Report Skyrocketing Drug Prices Are Challenging Their Budgets
And the problem isn't just the most expensive drugs, which hospitals may already be thinking about in their budgets. An anesthesia drug called ephedrine sulfate went from $6 in 2013 to $24 in 2015, and spending more than quadrupled to $34.6 million. A drug called glycopyrrolate used before surgery to dry secretions went from $5 to $23 a unit over two years, driving spending up from $5 million to $73 million. “You can pretty much ballpark medications that were already high-priced, but it's for the ones that were $5 last year and $300 this year. Those are the ones that are making it very difficult to budget,” an unnamed pharmacy vice president is quoted in the report. (Johnson, 10/11)
The Associated Press:
Hospital Industry Says It, Too, Is Slammed By Drug Costs
Consumer groups and insurers were already complaining loudly about drug costs. Now hospitals are turning up the volume as well, leaving the pharmaceutical industry more politically isolated. (10/11)
Forbes:
Battling Rising Drug Prices Is Like 'Whac-A-Mole,' Says Hospital Exec
Many times, the prices of these products increased in random and unpredictable ways, reported the AHA. That makes keeping up with rising drug prices “like playing Whac-A-Mole,” said Scott Knoer, chief pharmacy officer of the Cleveland Clinic, during a press briefing about the data. (Weintraub, 10/11)
Morning Consult:
Hospital Increased Spending On Drugs Challenging Hospitals, Analysis Shows
Hospital spending on inpatient drugs rose by an average of 38.7 percent per admission between 2013 and 2015, an analysis released Tuesday by the Federation of American Hospitals and the American Hospital Association shows. The findings suggest a new challenge for hospitals, FAH President and CEO Chip Kahn said. “This analysis is a real wakeup call on health care spending. It confirms what local hospital administrators recognize as a serious and growing problem for their patients,” Kahn said in a statement. “Rapidly rising drug costs combined with unsustainable Medicare and Medicaid cuts put hospitals in an impossible bind.” (McIntire, 10/11)
For more news on high drug costs, check out our weekly feature, Prescription Drug Watch, which includes coverage and perspectives of the issue.
