[e-drug] Can we standardise the pharmaceuticals' mark-up on cost? (2)

[gnm7-uva6@spamex.com]

E-DRUG: Can we standardise the pharmaceuticals' mark-up on cost? (2)
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Dear E-druggers,

Perhaps someone with more knowledge of health economics should jump in
here... but more in general I do know that cost-plus systems are fraught
with problems. 

The main one is that 'cost' is not such a clear cut
phenomenon as many people think, and is *very* open to issues of
interpretation (also known as accounting principles). It is very easy to
manipulate accounting principles and practices in such a way that 'cost' is
funnelled towards cost-plus products and away from products which can be
priced more freely.

Just my two cents (which, by the way, cost considerably more than two cents
to produce...)

regards

Michael Keizer
student, La Trobe University, 
Australia
gnm7-uva6@spamex.com