3 ms·

If this product is going to work, it needs to figure out how to create an incentive for the existing players to get involved. I agree with your writeup, but I'

If this product is going to work, it needs to figure out how to create an incentive for the existing players to get involved. I agree with your writeup, but I'd like to call this out in particular: What if all the existing players are the source of the problem? That's the real trouble facing startups in healthcare: everyone wants to partner with the existing players, but they're all basically profiteering bastards.

toomuchtodo 12y ago
> everyone wants to partner with the existing players, but they're all basically profiteering bastards. I was thinking this while reading refurb's comment and pleasantly surprised to get down to yours where its explicitly called out.
- refurb 12y ago
  I guess it depends on how you define "profiteering". The drug distribution business has many competitors and margins are razor thin (think <2%). PBMs are also pretty competitive and I don't think they make a ton of money either. As for insurance companies, the ACA put limits on profit.
  - angersock 12y ago
    And yet Aetna does pretty well for itself: http://www.google.com/finance?q=NYSE%3AAET&ei=yIswVam_LOuJsge4_YHQBw http://www.google.com/finance?q=NYSE%3AAET&ei=yIswVam_LOuJsg... So does Humana: http://www.google.com/finance?q=NYSE%3AHUM&ei=44swVcjiAcSGsgfL5oCgCg http://www.google.com/finance?q=NYSE%3AHUM&ei=44swVcjiAcSGsg... And Anthem: http://www.google.com/finance?q=NYSE%3AANTM&ei=OIwwVYr5OIWDsQfltYGoAQ http://www.google.com/finance?q=NYSE%3AANTM&ei=OIwwVYr5OIWDs... And Pfizer: http://www.google.com/finance?q=NYSE%3APFE&ei=uYwwVeG2DezwsQfMhoCAAw http://www.google.com/finance?q=NYSE%3APFE&ei=uYwwVeG2DezwsQ... And Bayer: http://www.google.com/finance?q=ETR%3ABAYN&ei=Fo0wVcmsE6qysQfk84DoCg http://www.google.com/finance?q=ETR%3ABAYN&ei=Fo0wVcmsE6qysQ... And that's without even getting started on the corruption of equipment purchasing: http://www.washingtonmonthly.com/features/2010/1007.blake.html http://www.washingtonmonthly.com/features/2010/1007.blake.ht... Or the FDA: http://www.forbes.com/sites/davidmaris/2012/10/10/fda-recall-points-to-serious-problems-at-the-fda/ http://www.forbes.com/sites/davidmaris/2012/10/10/fda-recall... Or even the physician trade union itself: http://seattlepostglobe.org/2011/03/07/warnings-of-doctor-shortage-go-unheeded/ http://seattlepostglobe.org/2011/03/07/warnings-of-doctor-sh... (note that the govt. measure causing the shortage of residency slots was supported by the physicians themselves--only to later recant after the damage had been done) There are some players who have a hard time making an obnoxious profit, sure, but let's not pretend that's the general case. Those shiny new hospitals going up in your local medical center? That money isn't there because healthcare is so affordable and easy to get.
    - refurb 12y ago
      I'm not sure what stock prices have to do with "profiteering".
msabalau 12y ago
As it happens, despite the parent comment's hypothesis, it's clear from their website that most insurance companies (and also Caremark) do cover Pillpack for the standard co-pay. Oddly enough, risk bearing entities like insurance companies actually follow financial incentives and want policy holders to take needed drugs. The profiteering bastards.

toomuchtodo 12y ago

> everyone wants to partner with the existing players, but they're all basically profiteering bastards. I was thinking this while reading refurb's comment and pleasantly surprised to get down to yours where its explicitly called out.

refurb 12y ago
I guess it depends on how you define "profiteering". The drug distribution business has many competitors and margins are razor thin (think <2%). PBMs are also pretty competitive and I don't think they make a ton of money either. As for insurance companies, the ACA put limits on profit.
- angersock 12y ago
  And yet Aetna does pretty well for itself: http://www.google.com/finance?q=NYSE%3AAET&ei=yIswVam_LOuJsge4_YHQBw http://www.google.com/finance?q=NYSE%3AAET&ei=yIswVam_LOuJsg... So does Humana: http://www.google.com/finance?q=NYSE%3AHUM&ei=44swVcjiAcSGsgfL5oCgCg http://www.google.com/finance?q=NYSE%3AHUM&ei=44swVcjiAcSGsg... And Anthem: http://www.google.com/finance?q=NYSE%3AANTM&ei=OIwwVYr5OIWDsQfltYGoAQ http://www.google.com/finance?q=NYSE%3AANTM&ei=OIwwVYr5OIWDs... And Pfizer: http://www.google.com/finance?q=NYSE%3APFE&ei=uYwwVeG2DezwsQfMhoCAAw http://www.google.com/finance?q=NYSE%3APFE&ei=uYwwVeG2DezwsQ... And Bayer: http://www.google.com/finance?q=ETR%3ABAYN&ei=Fo0wVcmsE6qysQfk84DoCg http://www.google.com/finance?q=ETR%3ABAYN&ei=Fo0wVcmsE6qysQ... And that's without even getting started on the corruption of equipment purchasing: http://www.washingtonmonthly.com/features/2010/1007.blake.html http://www.washingtonmonthly.com/features/2010/1007.blake.ht... Or the FDA: http://www.forbes.com/sites/davidmaris/2012/10/10/fda-recall-points-to-serious-problems-at-the-fda/ http://www.forbes.com/sites/davidmaris/2012/10/10/fda-recall... Or even the physician trade union itself: http://seattlepostglobe.org/2011/03/07/warnings-of-doctor-shortage-go-unheeded/ http://seattlepostglobe.org/2011/03/07/warnings-of-doctor-sh... (note that the govt. measure causing the shortage of residency slots was supported by the physicians themselves--only to later recant after the damage had been done) There are some players who have a hard time making an obnoxious profit, sure, but let's not pretend that's the general case. Those shiny new hospitals going up in your local medical center? That money isn't there because healthcare is so affordable and easy to get.
  - refurb 12y ago
    I'm not sure what stock prices have to do with "profiteering".

msabalau 12y ago

As it happens, despite the parent comment's hypothesis, it's clear from their website that most insurance companies (and also Caremark) do cover Pillpack for the standard co-pay. Oddly enough, risk bearing entities like insurance companies actually follow financial incentives and want policy holders to take needed drugs. The profiteering bastards.