We cannot deny the fact that the costs of prescription drugs have been increasing at a considerable rate over the last few decades. While total healthcare spending per capita has almost tripled during this period, per capita expenditures on prescription drugs have increased six-fold. But should this trend be a source of concern?
Drug shortages remain a source of headache for health professionals throughout the country. Policies that artificially lower prices end up making the production of certain prescription drugs simply unprofitable. In the long run, this situation has the effect of pressuring several pharmaceutical companies to abandon the production of drugs whose profit margins are too small and reallocate their resources to the production of others with a better chance of being profitable. We are missing our target if, by trying to ensure that drugs are safe and sold at low prices, we create shortages.