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Pharmacy's Call for Authorities to Aggressively Enforce Laws Addressing Price Gouging
T Joseph Mattingly1, Michael D Hogue2
1Department of Pharmaceutical Health Services Research, University of Maryland School of Pharmacy, Baltimore, California.
Journal of Managed Care & Specialty Pharmacy
|April 25, 2020
Summary
Concerns about pharmaceutical distribution and drug pricing arose during the COVID-19 pandemic. Increased demand for potential treatments like hydroxychloroquine led to shortages and potential price gouging, impacting payers and pharmacies.
Area of Science:
- Pharmaceutical Sciences
- Health Economics
- Public Health
Background:
- Early COVID-19 treatment reports sparked concerns over drug distribution.
- Demand surges for hydroxychloroquine, despite limited evidence, caused shortages.
- Pharmacists reported drug shortages through social media channels.
Purpose of the Study:
- To explore pharmaceutical supply chain and drug pricing issues during the COVID-19 pandemic.
- To identify potential problems for payers and pharmacies.
- To analyze the impact of increased drug utilization on healthcare spending.
Main Methods:
- Review of early reports and market dynamics.
- Analysis of pharmaceutical distribution challenges.
- Examination of drug pricing during a public health emergency.
Main Results:
- Hope for unproven COVID-19 treatments led to demand surges and shortages.
- Potential for exploitative price increases by manufacturers, distributors, and pharmacies.
- Increased prescription drug use may raise overall healthcare spending for all payers.
Conclusions:
- The pandemic highlighted vulnerabilities in the pharmaceutical supply chain.
- Drug pricing during emergencies requires careful consideration to prevent exploitation.
- Increased drug utilization necessitates proactive strategies for payers and pharmacies to manage costs.
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