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Fast-rising drug prices hit hospitals hard in bottom lines
Modern Healthcare

When drug costs rose $20 million in one year for Beaumont Health in suburban Detroit, CEO John Fox asked executives like Kathy Pawlicki, vice president for pharmacy, why and what could be done about it.The answer? Not much. Leading factors for drug price increases are mostly out of providers’ control, including such recent trends as hedge funds acquiring generic-drug companies and then forcing up prices.Double-digit price increases have not affected just hospitals, but also clinics, insurers and retail pharmacies, experts said.Bob Kirby, corporate director for Chicago-based Fitch Ratings, said prices of such injectable heart medications as Nitropress and Isuprel doubled after Valeant Pharmaceuticals acquired the parent companies last year.