David Goldhill Quotes

A Recent Economist Article On Dialysis Perfectly Illustrates The Inflationary Impact Of Cost-plus Pricing. Since U.S. Clinics Are Paid On A Cost-plus Basis, They Prefer To Use Expensive Drugs Rather Than Cheaper Ones. In Fact, Many Appear To Order Drugs In Units That Exceed What A Standard Dosage Requires Because They Can Charge The Government For The Wastage. Quoting A Stock Research Firm, The Article Noted That Many Clinics Preferred An Injected Drug With A Price Of $4,100 A Year Over The Identical Drug In Oral Form, Priced At Only $450 A Year. Not Surprisingly, The Manufacturer Of The Oral Drug Responded By Increasing Its Price Above That Of The Injected Version To Make It More Competitive!

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