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Health care and Advertising; The problems that arise in the field of Pharmaceuticals.

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Health care and Advertising; The problems that arise in the field of Pharmaceuticals Intro Healthcare advertising and marketing is on the rise. Few healthcare providers even had marketing departments in the 1970's. Now, even mainstream providers are investing in their images. Advertising often helps the consumer make choices amid a large number of options. But consumer patient choice is increasingly limited by managed care plans, adding a layer of irony to the spread of direct advertising. In this paper I would like to talk about advertising, specifically in the healthcare field, go over some the problems, and try to find solution to some of the problems in the industry, and try to express my opinions on the matter. What is Advertising Advertising is salesmanship. The only purpose of advertising is to make sales. It can either be profitable or unprofitable. It is any form of non-personal presentation and promotion of goods, ideas, or services by an identified sponsor. Advertising is used for business firms, non-profit organizations, professionals, and social agencies. Major decisions in advertising include objective setting, budget decisions, message, and media decisions, and campaign evaluation. It is a way of promoting products, services, or information. It is a way for business to communicate with consumers in a visual manor. ...read more.


This moral hazard affects patients access to pharmaceuticals. Because HMOs bear the lions share of the cost of prescription drugs but receive only a fraction of the benefit, they do not have the correct incentive to provide the drugs that are optimal from the consumers point of view. Instead they may seek to minimize their expenditures on pharmaceuticals. In 1996, 24.4 percent of HMOs offered financial incentives to physicians to encourage them to reduce the cost of medication(CMS2004). One of the main problems dealing with this is healthcare providers tend to conceal information about drugs that are available to members of HMO. Also, if consumers to not recognize the benefit's they receive from different prescription drugs, the HMOs have an incentive to offer the cheapest drugs rather than the drugs that receive the largest net benefit. Consumers must always have an understanding of what cost effective medicines are available due to the fact that if consumers are unable to verify whether the healthcare provider fulfilled its promise to provide the most cost-effective medicines, they cannot retaliate against the provider that cheated them. Although consumers are initially unaware of the benefits that they may or may not receive from different drugs, a drugs manufacturer can use advertising to inform consumers about its product. ...read more.


Their purpose or intention is not needed under these set circumstances. I know in my opinion, as far as the cost and demand for these ads from an economic perspective is asinine. Health care and government need to spend more time and money on more important things such as new medicine , better buildings, and hospitals, and better care. It is my conclusion that that healthcare industry regulators are willing to accept advertising costs as a legitimate expense for providers, but seem not to have an adequate mechanism for determining just what and how. Like I stated earlier, it is not that healthcare advertising should not exist but things need to be changed such as clear, and cut advertising, better regulation of advertising, and private funded instead of government funded. Bingham A. Walter. Snake Oil Syndrome. Patent Medicine Advertising: Hanover, Mass. Christopher, 1994. CMS (2002) www.CMS.com Direct to consumer advertising. ACP online. October, 1998. Hansen. Han. Liberal Government spending in the U.S. Oct. 2003. HMOS and Patients Rights": Rationing Medicine. Parker, Richard. July, 2001. Johnson. Donald. The Business Word. March 2004. Kennedy. Noel. The Victory principle. Jan. 2001 Zuckerman. Alan M. Competing on Excellence. Healthcare strategies for a Consumer Driven market. Nov. 2003 The Venture Capital Analyst Health Care Edition. Co. 2004 www.Healthcare advertising.com. Copyright 2004. www.texmed. Com . Practice Management: Advertising restrictions. ...read more.

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