Tuesday, November 9, 2010

Genetech Providing Incentives to Physicians

In both the MBA course and Health Economics courses that I teach I use Genetech's dilemma in the production of both Lucentis and Avastin - in that both are being used for macular degeneration - but one cost $2000 per treatment and the other costs $50 per treatment. One of the things I like to do is ask - if you were the President of Genetech, what would you do?

Well, the New York Times has an article discussing that Genetech has an answer as to what Genetech has done. Genetech has been offering incentives to physicians to proscribe Lucentis instead of the cheaper option.

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