Demand And Supply Of America Medicine Market

896 words - 4 pages

Demand and Supply of America Medicine Market

Associated with the quality life that modern society people pursued, an excellent health care is always concerned no matter where people are. However, the medicine demand and supply are an indispensible part of the chain. So there is a medicine issue of demand and supply in America, which eventually has required US government intervention is of serious concern.

Initially, from the article, it is can be explored that the demand of vital drugs like generic drug that is used to treat cancer, where shortage reports seem most critical and total number for drug shortage reached 232 in 2011 (The Economist, 2011). The factor caused this firstly is ...view middle of the document...

Apart from those factors, political elements have an impact on short supply of medicine as well. Based on healthcare reform last year, the government forces the medical suppliers’ profit margins to be dampened and enable them reluctantly produce vital medicines at lower price to combat the dramatic demand especially during the time of high unemployment rates that dozens of dwellers are unable to paid high cost healthcare. This is known as price ceiling. However, the thing does not always happen the way expected despite the government means to fix the medicine chain properly. Although some certain type of prescription medicine have involved in Medicare, the price has still been being more expensive than ever that cannot be afforded particularly for elder people. The medicine company continuously set a high price under the line that government allowed maintaining to make maximum profits. So the relationship between Medicare institute and Medicine Company is utilized to set a quite unacceptable price that leads to this policy to be carried out abortively. In short, the political factors are influencing medicine supply in the form of a trend of increasing medicine price. Besides, the Unapproved Drugs Initiative sponsored by FDA (Food and Drug Administration, 2011) is another political factor for the consequence. The doctors blame for the act becoming an obstruction for time-honored drugs used constantly to pass the GMP certified. So the policy makes for a forced low price that is minority firms do and a time delay on the old drugs to remanufacture from the healthcare reform, which contributes to medicine lacking as well.

Considering the black market, which works as an external factor for medicine shortage...

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