Dr. Toby Cosgrove: Drug costs contributed to Cleveland Clinic’s low operating income for FY 2016

Cleveland Clinic President and CEO Toby Cosgrove, MD, cited high drug costs as part of the reason the health system’s operating income fell in fiscal year 2016, reports Cleveland.com.

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Cleveland Clinic ended FY 2016 with operating income of $243 million, marking a nearly 50 percent decrease from the $481 million it generated the year prior, according to the report.

Dr. Cosgrove said the decrease was expected and mainly spurred by falling reimbursements and rising drug costs at his State of the Clinic address to employees Feb. 15.

Cleveland Clinic saw a 19 percent increase in drug costs systemwide in 2016, according to Dr. Cosgrove.

“The patients are older, they’re sicker,” Dr. Cosgrove said in his address. “[T]here’s [sic] more things we can do for them, and it’s more expensive to look after them.”

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