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Politics : A US National Health Care System?

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To: Road Walker who wrote (13345)2/8/2010 3:11:48 PM
From: TimF  Read Replies (1) of 42652
 
Lower prices for their product almost certainly will make them less profitable.

You can get consolidation, but I don't think the large pharma companies are too small to get effective economies of sale.

You can "make up for it in volume", but I don't anticipate an explosion of drug use, and if we do get that, then the costs aren't going down.

They can use their political influence to push the price levels up, but again you lose the benefit your trying to get.

They can lower costs, but I don't think they have that much fat. They could lower R&D and milk the current drugs, but that's the problem I'm talking about.

Also even if they do have a lot of fat, its hard to closely align the cuts to just get the fat, unless you think they are among the worst run organizations, and you think they are going to suddenly get much better management.
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