Who knew about the “strange marketplace for diabetes test strips.” Great learnings here for the healthcare entrepreneur. Too strange to describe in full. Doctors, pharmacies, and of course PBMs are all entangled in this payment, rebate, and resale scheme. Better to read the whole piece.
Key quotes for the entrepreneur:
“Test strips are a multi-billion-dollar industry.”
“Some clinicians are surprised to learn of this vast resale market, but it has existed for decades, an unusual example of the vagaries of American health care.”
“...it is generally legal to resell unused test strips…
“Mobile phones light up with robo-texts: We buy diabetic test strips!”
“It’s a tiny little piece of plastic that’s super cheap to manufacture, and they’ve managed to make a cash cow out of it,”
What other marketplaces can the innovator identify and develop or expose to really help patients, providers and policy makers.