BMI View: The necessity of reducing healthcare spending by both the public and private sectors in the US is having a direct downward effect on prescription drug expenditure. The government, employers and families can readily identify with medicine cost containment, but have difficulty lowering spending on more nebulous areas such as healthcare administration, technology and intermediaries in the supply chain. There is also the inherent difficulty of reducing the wages of medical personnel, which account for a sizeable proportion of total healthcare spending. Downwards pressure on revenue generated by prescription drug firms will become increasingly common, as early efforts to …
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