Investor Presentaiton
Prescription drugs are important for patients' health and wellbeing, warranting
government regulation
The Federal Trade Commission enforces non-criminal antitrust laws in the U.S. to prevent and eliminate
anticompetitive business practices, including monopolies. 17 However, there are certain industries where
monopolies are allowed and are regulated for the public good, like utilities. Utility companies hold
natural monopolies over certain service areas. These natural monopolies provide greater efficiency and
economies of scale. To compensate for this, the government heavily regulates them to protect
consumers. Government agencies currently regulate utility companies for prices charged to customers,
budgetary processes, construction of new facilities, services offered, and energy efficiency programs.
These monopolies provide critical services that heat homes, water crops, and make economy
sustaining industry possible.
Utilities are essential to people's wellbeing and a similar argument can be made for prescription drugs.
Patients need critical or lifesaving prescription drugs to treat high blood pressure, heart disease,
asthma, diabetes, mental illness, among many other conditions. Without these prescriptions, patients
would have a lower quality of life and possibly live shorter lives. Because a handful of PBMS control
most of the market and vertical integration has become more prevalent, there is a possibility the
industry is at risk of anti-competitive practices. Given the necessity for medications and their overall
importance to the public good, there is a need for reasonable government regulation.
"This unfair squeeze by PBMs on independent pharmacies in
Oregon and throughout the country poses a direct threat to
these community mainstays' ability to stay open for their
patients who count on them for quality local service."
Ron Wyden, United States Senator (Oregon)
Source: Image courtesy of www.wyden.senate.gov
As part of our strategic effort to provide real-time auditing services, we provided timely information to
Oregon's Legislature in September 2022 and February 2023, as seen in Appendix C. Real-time auditing
focuses on evaluating front-end strategic planning, service delivery processes, controls, and
performance measurement frameworks before or at the onset of significant program or public policy
implementations by state agencies.
17 Investopedia What Is a Monopoly? Types, Regulations, and Impact on Markets A monopoly is a market structure where a single
seller or producer assumes a dominant position in an industry or a sector. Monopolies are discouraged in free-market economies
as they stifle competition and limit substitutes for consumers.
Oregon Secretary of State Report 2023-25 | August 2023 | page 13View entire presentation