- 80 experts object to a proposal to slap a 95% tax on drugs that do not submit to price controls.
- China has matched the United States in output in seven high-tech sectors, including pharmaceuticals and medical products.
- If worry about climate change is a mental health issue, why is the W.H.O. contributing to the problem?
- The good news on immigration.
Thursday Links
- A Bloody Waste: Why is the Red Cross turning down healthy blood that is being thrown away?
- Uvalde follow-up: While most people think that police have a duty to attempt to protect people from harm, the law has been clear—cops have no such duty.
- Coffee keeps you awake. Can it also keep you alive?
- Drug cartels in northern Mexico are kidnapping doctors to tend to gang members wounded in battle.
- Capretta on Medicare Part B: the government’s contribution to the SMI Trust fund will be $6.0 trillion over the period 2022 to 2031, reaching the equivalent of about 30 percent of all individual and corporate income tax receipts at the end of 75 years.
Do Higher Priced Hospitals Deliver Higher Quality Care?
This NBER Working Paper says it depends on whether there is competition.
In markets with more hospital competition, going to higher-priced hospitals raises spending by approximately 53 percent and lowers mortality by 47 percent. By contrast, in concentrated hospital markets receiving care from a high-priced hospital also raises spending by 54 percent, but has no impact on patient outcomes.
And the higher spending in competitive markets is worth it:
Such hospitals spend approximately $1 million per life saved. Assuming that the individuals in the research sample live for another nine years, this is cost effective relative to the Environmental Protection Agency’s $8.7 million benchmark estimate of the value of a statistical life.
Unfortunately, the trend in the overall market is for more concentration and less competition.
The FTC wants to Know if Middlemen Increase Drug Prices
The Federal Trade Commission (FTC) is opening an investigation into the business practices of pharmacy benefit managers (PBMs). PBMs have been in the hotseat for quite some time. Executives from the largest PBMs were recently called to testify before Congress to explain whether their business practices lead to higher drug prices. In the latest inquiry, the FTC announced it will require the six largest PBMs to provide a range of information and business records on operations.