Rules of supply/demand prove dangerous with flu
ajc.com
When it comes to trading commodities such as gold, crude oil or pork bellies,
capitalism is usually governed by its own innate logic. But the immutable laws of
supply and demand simply don't add up when the public's health is at stake.
This year's flu outbreak chillingly illustrates that a critical piece of our market-driven
health care system is seriously vulnerable to the machinations of opportunistic
profiteers.
Driven by a nationwide shortage of available flu vaccine, Georgia's top health
officials, it seems, were suckered into a costly flirtation with these scam artists. In
the meantime, thousands in the state who are most at-risk -- including young
children and seniors -- are still awaiting flu shots. One young Georgian has already
died, and about 1,000 others in the state are expected to succumb.
Granted, this winter's vaccine shortage was likely caused by several distinct events
that were difficult to predict or control. One was an earlier-than-usual flu season that
caused several deaths in the Western states. Making matters worse were natural
viral mutations that rendered some vaccines ineffective.
With the resulting sudden spike in demand for the vaccine, the handful of reputable
companies that produce the vaccine each year had sold all their supplies by late
November.
Pressured by desperate health care providers across the state, Dr. Kathleen
Toomey, director of Georgia's Division of Public Health, approved spending $1.65
million -- double the market price -- to buy 100,000 doses of the vaccine from
third-party brokers in Texas and Arkansas.
But after repeated delays, it became painfully evident that Toomey's office had been
rooked; the promised vaccine never existed. Toomey has contacted the appropriate
law enforcement authorities, including the FBI. While a criminal investigation is
under way and all but $70,000 of the state's money has been returned, this episode
is far from settled.
Among the lingering questions is why the state health department didn't do a more
thorough job of checking the backgrounds of vaccine brokers it was dealing with. A
spokesman for the agency insists that no corners were cut in attempting to verify
their credentials. But while both companies held the appropriate business licenses,
it's obvious they were lacking in experience and credibility.
More disturbing still is the apparent lack of coordination at the federal level to
quickly address the flu vaccine shortage. Neither the Centers for Disease Control
and Prevention, the Food and Drug Administration nor the Department of Health and
Human Services has yet mounted an adequate response.
Because flu vaccines are not nearly as profitable as some other drugs, the
pharmaceutical industry has little incentive to produce more than it expects to sell.
This year, the industry didn't make enough. The shameful truth is that shady
operators have been allowed to fill that gap by peddling lifesaving drugs to the
highest bidder. |
