How Medical Billing Coverage Spells Success Or Failure For Drugmakers
The U.S. is by far the global leader in healthcare research, and the reason is that the government promotes the research and development of innovative drugs and devices through reimbursements to the physicians who purchase them. It's this very important drug payback system that confers a huge advantage to healthcare companies selling drugs in the U.S. Any healthcare investor must consider this critical moat when analyzing healthcare equities to add to their portfolio.
It's with these reimbursements in mind that healthcare companies spend upwards of $1 billion on R&D to discover just one new drug. All of this is for nothing if the main healthcare agency in the U.S., The Center for Medicare and Medicaid Services (CMS), doesn't pay providers back through Medicare and private insurance, or reimburse them for medical care provided.
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Source Fool.com