The U.S. pharmaceutical industry: why major growth in times of cost containment?
Growth in utilization rather than price, particularly since 1994, has been the primary driver of increased pharmaceutical spending. In this paper I focus on four factors that have increased utilization, even as cost containment efforts have flourished: (1) "the importance of being unimportant"; (2) increased third-party prescription drug coverage; (3) the introduction of successful new products; and (4) aggressive technology transfer and marketing efforts by pharmaceutical firms. I also consider the roles that these four factors are likely to play in the future.
Massachusetts Institute of Technology's Sloan School of Management, USA.
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Berndt
D014487:Centers for Medicare and Medicaid Services, U.S.; D003363:Cost Control / Q000639:trends*; D004345:Drug Industry / Q000191:economics / Q000458:organization & administration / Q000639:trends*; D004363:Drug Utilization / Q000639:trends*; D019458:Insurance Coverage; D007356:Insurance, Pharmaceutical Services; D018581:Technology Transfer; D014481:United States