High Drug Prices Hurt Everyone

More evidence this week of how unchecked drug price increases are forcing hospitals to make tough choices and are a serious economic threat to the patients and communities we serve. An AHA/Federation of American Hospitals-commissioned report by the University of Chicago’s NORC showed inpatient hospital drug costs increased more than 38% per admission between 2013 and 2015. An AHA infographic also outlined how rising drug prices are limiting patient access to needed medicines and are busting hospital budgets. What’s most surprising is that the list of worst offenders is dominated by old drugs, some of which have been on the market for decades. Their prices are being raised in seemingly random and unpredictable ways. When drug companies put profits before patients, we all pay the price. This is part of our overall strategy on drug pricing, which includes AHA’s membership in the Campaign for Sustainable Rx Pricing – a coalition of health care providers, insurers and seniors focused on highlighting the need for action and advocating for solutions to address the problem through greater transparency, competition and value. In fact, these ideas are consistent with our specific policy recommendations to rein in escalating drug prices, which were developed with input from member hospitals and health systems through our governance process. Regardless of the outcome of the election, we will work with our coalition partners in a bipartisan manner to pursue legislation next year.