Pharmaceuticals: Explain What Medical Arms Race Means

Pharmaceuticals
Name
Institutional Affiliation
Thoughts on resolving the conundrum between high drug prices in the U.S on current drugs and the development of future live-saving drugs?
First, the government can institute laws that dictate the cost of drugs. The law can take into consideration the cost of production, profits for the company and guarantees the financial capability of developing more drugs while ensuring their affordability. Second, by promoting competition in the market through the elimination of reinvention of a drug in a process known as evergreening, to create what they consider a “new” drug, thereby enabling potential drug competitors to come into the market.
Explain what “medical arms race” means and if you agree that this is happening in the Seattle area
The medical arms race is the increase in competition among hospitals. To attract more patients and exceed others, hospitals engage in competition by investing in technology and facilities some of which were unnecessary which, raises their prices. The medical arms race is happening in Seattle. Hospitals such as Swedish Cancer Institute and Seattle Cancer Care Alliance engaged in competition since 2010 to provide radiation treatment for cancer using proton beam therapy, despite lack of conclusive research that it is better than current treatment.
Explain whether the horizontal integration trend will continue with US hospitals? If it does continue, what is an economic concern regarding market efficiencies?
I believe the horizontal integration trend will continue in American hospitals. The declining reimbursements of Medicare and Medicaid and the introduction of law and regulation burdens have forced hospitals to re-evaluate their operations and delivery of services. Consequently, hospitals have promised to enter into new mergers as a way of providing integrated services. The continuation of this trend will result in stunting of the growth of the market. Hospitals such as this get more personnel, their services increas...