Dr Peter Bach Explains Diminishing Returns in Cancer Drugs

Over the years the cost of gaining a year with a new cancer drug has gone up to $8500. However, while the cost of introductory cancer drugs is increasing rapidly, there has not been a commensurate increase in benefit, according to Peter Bach, MD, with Memorial Sloan Kettering Cancer Center.

Healthcare is the only sector where a product is becoming more expensive while being incrementally less efficient, he said.

“What we see is what economists would call ‘diminishing returns,’” Dr Bach said. “Or you could look at it the other way: higher charges for health benefits.”