Pharmaceutical Companies
A functioning healthcare system needs medications that are prescribed by a provider or purchased as an over-the-counter medicine from a pharmacy. The pharmaceutical industry is integral to the success of a healthcare system. Innovative drugs have improved people’s quality of life. There has been an internal division within the pharmaceutical industry between the manufacturing of brand name drugs and generic or “me too” drugs. A generic drug , which does not have name recognition, is a less costly alternative to a brand name drug. The generic drug manufacturer must provide the same active ingredients as the brand name drugs; however, the manufacturing process is less costly to makers of generic drugs because they do not have to file for a patent. A generic drug has no patent protection and is sold at discounted prices (Zhong, 2012).
Brand name drugs such as Lipitor and Viagra are typically more expensive than generic drugs because such drugs might cost a pharmaceutical company more than $1 billion and take several years to develop. The Food and Drug Administration, which is responsible for approving drugs for human use, has traditionally upheld a very strict and lengthy approval process. However, recently, the FDA is removing red tape and speeding up the process for drugs that can help serious diseases. When a patent is awarded, a pharmaceutical company typically has 20 years’ patent protection to develop a drug. However, because of the length of time it takes to determine the safety and effectiveness of a drug, once the drug is available for the public, the patent may be reduced several years (Mandal, 2014). Once that patent protection has ended, there are more opportunities for generic drug companies to control the market (Herper, 2013).
Like health insurance companies, the pharmaceutical industry is often vilified because of the cost of some prescribed medicines, which often precludes any consumers from purchasing these medications themselves without health insurance assistance. The industry’s response is that it takes millions of dollars and years of research to develop an effective medicine and that is a major reason why some medicines cost so much. The pharmaceutical industry is represented by the Pharmaceutical Research and Manufacturers of America (PhRMA) (PhRMA, 2016).
▶ Stakeholders’ Environment
Working Conditions
Healthcare workers have many varied opportunities for workplace settings. Hospitals are a typical work environment, as are physician offices. As outpatient services have become more popular, healthcare professionals can work from their homes. Healthcare professionals can work in outpatient facilities, schools, laboratories, corporations, and other unconventional settings. They are exposed to serious health hazards, including contaminated blood, chemicals, drugs, and X-ray hazards. Depending on the job, there may be ergonomic issues due to lifting of patients and heavy equipment. This industry has one of the highest injury and illness rates. U.S. hospitals recorded nearly 58,000 work-related injuries and illnesses in 2013, amounting to 6.4 work-related injuries and illnesses for every 100 full-time employees: almost twice as high as the overall rate for private industry. In 2013, healthcare personnel reported seven times the national rate of musculoskeletal disorders compared with all other private sector workers. Nurse assistants and nurses have the highest injury rates of all occupations (OSHA, 2015).
Projected Outlook for Employment
The healthcare industry’s employment outlook is positive. By 2024, there is a projection of an additional 22 million jobs. Growth will most likely be outside the inpatient hospital centers because cost containment is the major priority for health care. Health care will continue to grow for three major reasons: the aging of the U.S. population, advances in medical technology, and the increased focus on outpatient care.