All irrelevant to my point: The reason why pacemakers that cost very little to produce retail at 30 or so grand.
I gave you the reason. You're completely missing the point. I don't give a damn about which company has a higher failure rate. I ONLY was seeking to explain the high price of the pacemakers.
Working at an ebil Pharma....
I can tell you there is so much more going on behind the scenes than the just the simple cost of manufacturing a unit. For 1000 employees in the plant, perhaps 100 are directly involved in the actual manufacture. All the rest is overhead to:
Quality Systems
-Regulatory
-Validation
-Compliance
-Documentation
Facilities
Management
Packaging/shipping/distribution
Customer complaints and troubleshooting
Not to mention HR and training (last is significant and mandated by FDA)
FDA regulations are very expensive and intrusive, and very much have a negative impact on innovation. Its often cheaper to design a product once and never change it thru its lifecycle than to continually improve the manu process, as all those changes require expensive re-validation and regulatory approval.
However, that is not to say I think the FDA should be done away with, or is even bad. I've seen companies that do not make FDA regulated products (say for ex-US markets) and some of the shortcuts and shit they do is scary and dangerous.
Point being, we've made a choice here to error on the side of safety (tho doesn't always seem like it) rather than efficiency. I do think FDA regs can be smarter and more effective (they sometimes worry about minutiae and miss the bigger problems) Akin to the SEC regs harassing small traders for minor infractions, but completely missing Madoff's decades-long Ponzi scheme.
Not the only issue in health care costs, but certainly a large factor.
As far as the "free coffee" statement goes: most companies have gotten really cheap. Last year we did get free coffee, but that's a first and that's about it for perks. OTOH, a lab tech will use a container that costs more than
all the coffee for the facility for a week, to fill with water once and then be thrown away rather being cleaned and reused as the cleaning, documentation, testing, tracking, validation, monitoring programs, and regulatory exposure are more expensive than just buying a new one to get some more water. I shit you not.