Upper Austria orders review of hospital drug prices

Upper Austria has ordered a review of allegations that the Brothers of Mercy charged their own hospitals significantly more for medicines than other facilities, ORF reports. The Economic and Corruption Prosecutor’s Office is also investigating.

The allegations, first reported by German magazine Der Spiegel, concern the religious order’s hospital pharmacies, which supply both its own hospitals and other institutions. One cited example is an antibiotic allegedly sold to the private Linz Diakonissen Hospital for 24 euros, while the order charged its own hospital in Linz 240 euros. In some cases, the markup was reportedly tenfold.

Upper Austria’s health councillor, Christine Haberlander of the Austrian People’s Party, commissioned the state’s economic oversight authority to examine the case. She said there must be consequences if the allegations are confirmed.

The reported prices could affect hospital funding. When hospitals run losses, public money covers a large share of them, potentially leading to more money being drawn from the states’ health funds than necessary. Investigations are also under way in Styria.

The Brothers of Mercy deny the allegations. The order says price differences reflect additional services, including preparing and storing medicines and staffing costs. It also says there are differing legal interpretations and that the relevant authorities’ assessments are pending.