Hospitals are desperately trying to reduce drug costs, with the University Hospitals of Cleveland, for instance, promoting a novel approach aimed at deterring doctors from choosing expensive medications. When physicians search for drugs in their electronic registry, certain ones are accompanied by an ominous symbol: $$$$$.
Shawn Osbourne, the system's vice president of pharmacy services, came up with the idea of putting five dollar signs next to particularly expensive drugs. He developed the not-so-subtle psychological prod after doctors went over their drug budget by $20 million last year, he told the Washington Post.
While the cost of prescription drugs has long been a concern of patients, the dramatic price hikes from pharmaceutical companies in recent years has also drawn the wrath of providers.
Recommended For You
"Here's the thing that makes it more challenging: The patient doesn't initially see the price increase," Scott Knoer, chief pharmacy officer at the Cleveland Clinic, told the Post. "But it raises the cost for the hospital. Eventually, it catches up and it raises the cost for insurance companies, which is passed on to employers, employees and taxpayers through higher premiums and co-pays."
There are a number of ways that hospitals and doctors appear less interested in playing ball with pharmaceutical companies.
For one, more and more providers are imposing strict rules that bar pharma reps from interacting with doctors. A study last year showed that more than half of physicians appeared to be "restricted" to a certain extent from meeting with drug salespeople.
Secondly, medical associations have begun to advocate for professional practices and public policies that might undermine pharmaceutical profits.
In November, the American College of Physicians recommended for the first time that doctors prescribe generic drugs whenever possible, noting that patients were more likely to follow prescriptions for cheap medications. The same month, the American Medical Association called for an outright ban on advertisements for prescription drugs.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
