Hospitals Say They\'re Getting Slammed By Drug Price Increases

A new report from the American Hospital Association and Federation of American Hospitals has concluded that hospitals in California and elsewhere are getting hit hard from dramatic price increases imposed on pharmaceutical manufacturers and distributors.

The report, undertaken by the NORC think tank at the University of Chicago, concluded that hospitals have experienced a 38.7% increase in inpatient drug spending on a per admission basis between 2013 and last year and a 23.4% increase overall. Many of the most dramatic price increases involve old-line drugs that have been on the market since the 1970s or 1980s, according to the report. Some prices have gone up 30-fold or more in just a few years.

“The system is clearly broken,” said Scott Knoer, chief pharmacy officer of the Cleveland Clinic. “The drug companies cannot police themselves.”

The AHA issued a list of suggested changes to keep a tighter lid on drug prices, including encouraging greater competition, making it easier for generic versions of drugs to enter the market and tightening up rules for extending patents on some drugs.