Mehta Analysis: Biopharma’s 10% Myth
There’s a prevailing narrative that drug spending is a relatively minor 10% of overall healthcare spending in the US. Like most narratives, this isn’t completely wrong, but it ignores a relatively big portion of spending on drugs: those drugs that are administered in a hospital or clinic and get billed under a patient’s medical benefit plan, rather than the drug benefit portion of their insurance. Taking those hospital administered drugs, and other such direct distribution channels into account, the biopharma…