Big Fitz
User Quit *****
- Nov 23, 2009
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Sort of true. They are used to big earnings and big costs. Every drug has a certain amount of litigation costs built into it, incase something goes wrong. Their profit margins aren't as huge as say financial investors or hedge funds (which is about 80% profit) But they are better than oil company's profit margin (about 8-10%)A big part of the problem is the medical cost, Dr's have become accustomed to huge yearly earning so they adjust the billing to maintain the standard, cost has nothing to do with it. There is another component, why do we have to have all the test run. Lawyers pure and simple, the doctors have to play CYA. More cost, more profit. I don't have a solution but I know the answer is that someone is going to pay or you get no care.
You're right about litigation being a major force for increased medical costs. The FDA costs to test a drug for use in the market is extreme. Makes the hoops you have to jump through to get a garbage dump or nuclear power plant seem like a walk in the park. Then you have to have the hospital legal staff, the insurance company's legal staff for malpractice lawsuits and the doctor's legal liabilities.
That is why much of the costs in the US are so high... overuse of lawsuits for profiteering and blackmail of those with deep pockets. Make it loser pays and cap awards AND legal fees... it would destroy the lawsuit profiteering business and put tens of thousands of lawyers out of a job and force them to do work for a living instead of sue.