“Why don’t we say, ‘You guys can’t allow the U.S. consumer to be subsidizing all the research and development costs of drug development. You’ve got to pay your fair share. We want to see you add 20 percent to the cost of your drugs,'” he said.
One of the main reasons the U.S. pays more for drugs is because in other countries governments pay for the drugs and set the prices, said Mr. Davis.
U.S. consumers wouldn’t bear as much of the costs if other countries contributed more toward the prices, he added.
“The U.S. is being unfairly penalized for the cost of drugs around the world,” Mr. Davis said.
Combating the rising costs of drugs in the U.S. is a bipartisan issue, and many lawmakers are working on proposals to help bring costs down.
More articles on leadership and management:
Mercy hospital system to cut jobs, restructure
New Geisinger CEO Dr. Jaewon Ryu on his vision for democratizing world-class care
Northwell Health’s Michael Dowling named a 2019 ‘top CEO’
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
