Medical Procedures, Devices and |
Created Date 22-Jan-2019 |
Medicines in the United States |
Last Update 22-Jan-2019 |
A A A help |
1 | The Historical Reasons for the Cost | 2 | Cost Associated with Medicine |
3 | Intellectual Property | 4 | Disturbing Trend |
5 | Consequences to the United States |
One of the number one complaints against Health Care in the United States is the expense for treatment and health care. The second complaint is the cost of medicine.
While many of the various ideas and constructive criticisms are very valid and helpful, concerning managing the costs of both health care and medicine, the concept of comparing the cost as being a great deal less expensive in other countries requires some revue and understanding.
There are two factors that are overlooked:
In any industry, there is Research and Development Costs (R&D). In the Medical Industries which includes Pharmaceutical Industries, the development of new procedures and medicines, often involves:
According to many research companies in the United States, the cost of developing a new drug, now exceed $1.3 Billion Dollars with an average of 12 years from start to finish.
The expense associated with Medicine, that was developed in the United States, should impart to the reader, that the cost and success of Medical Procedures, Medicine and Medical Devices was incurred by the United States' Industry. Many other countries and their Medical Industries:
As of 2018, there are many countries who ignore Patents and steal Intellectual Property (IP) with impunity. The chief violators, who have decades of profit from stolen IP: are China and India, followed by Russia. The list goes on with other countries but the scale is not as high as the listed three. Note that at some point in the future, these three countries are going to fiercely protect their IP with legal measures and possibly even militarily.
The United States Government, through new laws, is creating more and more problems for the Medical Industry. The cost of run-a-way legal verdicts that only favor the lawyers and politicians are one part of many that are forcing Medical Companies to move or consider moving out of the United States. ObamaCare is an example of other another expense incurred by a Medical Company, which requires a 2.3% tax on revenues on Medical Devices ill-regardless of profit as it was based on sales where in many other industries R&D tax incentives are leveraged against taxes. An example given in a Forbes Magazine, cited the tax on ZOLL Medical Corporation pushed their tax burden to over 50% which eliminates their ability to have a R&D. If R&D is eliminated then the a Medical Company will eventually fail.
Many Countries are now enticing and luring away Research Companies and Researchers away from the United States with:
When Medical Research and Development leave the United States, it has a large cost on the United States Economy. One article from Forbes, suggests that the Medical Industry contributed $917 Billion Dollars to the United States economy in 2009 with employment of over four million jobs.
The United States cannot afford to lose its edge in the Medical Industry. Many countries like Japan, have for decades supported many industries with tax breaks, subsidies, protection in legal areas and other incentives to keep the industries competitive and leaders in the world economy.
The United States has done some notable work for many industries. As an example was the rescue of the Automotive Industry during the Obama Presidency. The United States needs to rethink its positions on the Medical Industry as well as many Industries.
As stated above, the United States is in a war that has been going for over 50 years. It is an economic war where the winning nations will govern the standard of living for their civilians and those of other countries. The United States is losing the war on almost every battle line of every industry because it is not a fair and level playing field.
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Some Sources of many:
https://www.nytimes.com/2017/08/15/opinion/china-us-intellectual-property-trump.html
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