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PhRMA Targets Hospitals’ Role in Hiking Drug Costs

September 6, 2018

PhRMA released a new report Wednesday highlighting the role of U.S. hospitals in increasing drug costs, showing they mark up prices for patients by an average of nearly 500 percent.

The analysis — conducted for PhRMA by health care research firm The Moran Company — looked at CMS data for all medicines from 3,792 hospitals and found that one in six hospitals hiked prices by 700 percent and one in 12 marked up prices by more than 1,000 percent.

“In order to make medicines more affordable for patients, we must address the role hospital markups play in driving up medicine costs,” said PhRMA CEO Stephen Ubl. “Hospitals receive billions of dollars every year in negotiated and mandatory discounts from biopharmaceutical companies while simultaneously increasing the price of these medicines to insurers and patients.”

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