I suspect the "lower quality at lower cost" issue is regulatory. The FDA requires that new pharma (and soon will enforce this for devices) provides better outcomes than existing drugs. They do not consider costs. Generics are supposed to take care of that. So, no R&D driven company will invest in new med technology that is unlikely to be approved. Change the regulatory incentives and you may be able to introduce some new innovations.
posted by Carolyn Merkel
March 8, 2010
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