Why are medicines so expensive in healthcare facilities?

The high price of drugs in hospitals is due to a number of factors, including, but not limited to, the following:

High drug production costs: Pharmaceutical manufacturers need to spend a lot of time and money on drug research and development, testing, registration and other aspects of the process, and these costs will be directly passed on to the selling price of drugs.

Insufficient coverage by government health insurance: Although government health insurance can reduce the burden of drug costs for patients, many patients still need to purchase drugs at their own expense due to the limited coverage and reimbursement rate of health insurance.

High cost of hospitals: As a service industry, hospitals have high costs of manpower, material resources, space, equipment, and management, and need to generate revenue through drug sales and other means to maintain normal operations.

Long benefit chain: hospitals, pharmaceutical companies, drug agents and other links need to get the corresponding revenue, forming a huge drug benefit chain, in which each link will increase the price.

Therefore, even if hospital drugs are sold with 0 price difference, they are still affected by a variety of factors, resulting in high drug prices.