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Medical device companies have very high gross profit margins but net profit margins around 7%, which is pretty typical for high tech manufacturing. That sugges

Medical device companies have very high gross profit margins but net profit margins around 7%, which is pretty typical for high tech manufacturing. That suggests that there isn't much in the way of excess profit.

linguistbreaker 8y ago
Agreed I think the (financial) excesses of the health care system are mostly related to the litigiousness of the USA and the administrative burden.
- nradov 8y ago
  "Overall annual medical liability system costs, including defensive medicine, are estimated to be $55.6 billion in 2008 dollars, or 2.4 percent of total health care spending." https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3048809/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3048809/ Litigiousness is an issue but it's not the biggest one.
  - Symmetry 8y ago
    My understanding is that the main proposed mechanism of action is that fear of lawsuits results in excess treatments.
    - nradov 8y ago
      That's included in the 2.4% estimate.