Report

Moran Company Study on Hospital Markups of Medicines

PhRMA November 1, 2017

Hospitals mark up medicine prices, on average, nearly 500 percent, according to a new study. The analysis of 20 different physician-administered medicines across a range of therapeutic areas also found the amount hospitals receive after negotiations with commercial payers is, on average, more than 250 percent what they paid to acquire the medicine. This means a hospital is paid two and a half times what the biopharmaceutical company, who brought the medicine to market, receives.

This report by the Moran Company identifies this hidden threat to affordability that is a driver of higher cost sharing and premiums for patients across the country.