Hospitals mark up drug prices by 250% on average, analysis finds

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Hospitals mark up drug prices by 250 percent on average, according to an analysis from Ronny Gal, a senior research analyst at Bernstein. 

Mr. Gal analyzed prices hospitals charge for drugs, with data disclosed as of Jan. 1. He found that hospitals mark up some drugs, such as Epogen, an anemia treatment, by as much as 533 percent compared to the average sales price. This incentivizes hospitals to use expensive branded products instead of biosimilars, he said. 

Remicade, a rheumatoid arthritis drug, was marked up 464 percent on average, and Neulesta, a drug given to chemotherapy patients, was marked up by 364 percent on average. 

Hospitals also charge a range of prices for the same drug, Mr. Gal said. The average variation is about 36 percent. 

For example, some hospitals charge as little as $5,000 per treatment of Neulasta, while others charge nearly $20,000. 

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