Case Study

How high are
hospital markups

for physician-administered
therapies?

The Question

Our client was launching a new physician-administered treatment for a rare, pediatric condition – the question for Medicus was: “What is the level of hospital markups for similar physician-administered drugs?”

The Approach

In coordination with our client, the Medicus team selected a set of key U.S. hospitals to answer this research question. Our team leveraged Medicus’ internal database of aggregated hospital pricing transparency data and analyzed markups for a set of analogue therapies with comparable therapeutic and competitive characteristics.

In addition to aggregate analyses, our team also conducted sub-analyses to identify key patterns to explain differences in negotiated payment rates between hospitals and payers.

The Results

Results from our analyses helped our client to better understand the level of markups that hospitals might apply to their physician-administered treatment. This understanding helped inform our client’s strategic decisions related to treatment pricing and contracting with U.S. payers.

The
Long And

Short
Of it

We helped our client better estimate hospital pricing and reimbursement dynamics for their physician-administered therapy.