Why Price Controls Sabotage Innovation and Health Miracles

Real-World Impact on Healthcare Innovation

Countries with stringent price controls often experience slower access to new medications compared to those with more flexible pricing structures. For instance, a study by the Fraser Institute found that Canadians wait longer for new drugs than Americans, partly due to the price controls imposed by the Canadian government². This delay can have serious implications for patients, particularly those with life-threatening conditions who might benefit from the latest treatments.

Moreover, the ripple effects of price controls can extend beyond pharmaceuticals. Medical device manufacturers and biotechnology firms also face similar challenges, where the reduced financial incentives can lead to a decrease in the pace and scope of innovation. This can result in a less competitive market, where fewer options are available to healthcare providers and patients.