Pharmaceutical industry ally says hospitals, not Pharma, to blame for rising health care costs

May 4, 2017

Pharmaceutical companies are receiving intense scrutiny and criticism for raising prescription drug prices. But some, including friends of Big Pharma, say Americans should blame hospitals for high health care costs.

“The average one-day stay in a U.S. hospital now costs $5,000. That’s seven times as much as in Australia. Heart bypass surgery averages $78,000, compared with $24,000 in the U.K.” David Dreier, a former U.S. congressman and a fellow at Brookings Institution, wrote in a column published in The Hill.

“Why is it,” Dreier asks, “that so many politicians focus on drug costs and not on hospital costs?”

Dreier’s theory: Most politicians have a hospital in their districts, but only a few have a drug manufacturer. That suggests it’s easier to point a blaming finger at a stranger than a neighbor.

The column sparked attention, including a report posted on FiercePharma.com noting that Dreier received nearly $300,000 from pharmaceutical and health-product companies.

FiercePharma also noted that U.S. drug spending grew faster in 2014 and 2015. In 2016, U.S. drug spending grew another 4 percent, while hospital costs grew by 5.3 percent.

What does this mean for consumers?

Costs are going up, whether for prescription drugs or hospital care. How has this affected you? What are your concerns? Please take a minute to fill out our Voices for Affordable Health survey.