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There's alot that figures into the cost of Rx drugs. Long ago, we passed the point of relying on the simpler formulated drugs like penicillin and tetracycline for antibiotics and nitroglycerin tabs for heart problems.
In the 70's and 80's, research and technological advances were so strong that scientists learned how to synthesize a very large number of new drugs. Research and Development costs ALOT of money. Sometimes it takes 8-10 years to bring just ONE new drug to the market. So, that's 8-10 yrs. that Pfizer or Smith, Kline, Beecham is paying people to work on the development of that drug, but they're not getting ANY returns on it. So, when it does make it to market, they've got to recoup their costs. If you were a bio-medical engineer developing new drugs, would you work TODAY for the same pay that you got 10-15 yrs. ago? No, of course you wouldn't. And you certainly wouldn't work all those years for free.
Another factor in drug costs is lawsuits. Dow was sued for BILLIONS in the late 80's or early 90's for silicone breast implants. Thus, if you were ever written an Rx for a Merrill-Dow pharmaceutical product, you helped to pay for that award. By the way, the women involved in that class action suit averaged a NET gain of $87 each for THEIR part of the award---the lawyers TOOK THE REST. Similarly, A.H. Robbins was sued in a class action for defective heart-valve replacements and had to pay millions or billions. Ever used Robitussin cough syrup? If so, you helped pay for the heart valve award.
Bottom line----the drug companies provide services and products that everybody wants and in order for them to continue on with their business of producing, SOMEBODY has to pay for it. The over-head costs to drug companies are astronomical.
Healthcare is expensive also for a multitude of reasons.
First, the CEO's who run some insurance companies probably do virtually nothing but serve as a figurehead and eat expensive lunches dinners. Yet he's probably pulling down at least several million per year in salary.
Same goes for the CEO at the hospital----the guy who NEVER touches a patient, but gets paid tons just for being a 'suit' and probably a smooth talker.
Secondly, technology.
A brand new MRI unit costs about 1.6 million dollars in the box. Add the costs of setting up and equipping the room, installing the unit, getting it up and running and then, costs of training time.
A new CT scanner costs close to a million. Again, somebody has to pay for the technological equipment and the personnel who operate it.
Those who are licensed professionals in healthcare have education costs accrued. They have yearly licensing and certification fees to pay. They are required to do X number of hours per year in continuing education. Courses cost money. They have liability (malpractice) insurance costs.
They work hard and deserve EVERY penny, actually more, than they get.
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