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June 26, 1967


JAMA. 1967;200(13):49-50. doi:10.1001/jama.1967.03120260027004

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Dr. Melvin D. Small, a professor at Georgetown University Medical School, testified before a Senate Small Business Subcommittee investigating drug prices that generic prescribing of drugs by physicians does not assure lower prices for patients.

The emphasis at the Committee's hearings has been on the generic vs trade name issue.

Small said that physicians who prescribe on a generic basis may only hope that patients get the benefit of lower prices.

"I would emphasize that the price charged to the consumer of drugs is far more dependent upon the whim of the dispensing pharmacist than upon the charge for the drug to the pharmacy," he said.

Druggists find it more profitable to stock and sell trade names, he said, "because of tie-in deals, tablet deals, and frank inaccuracies of the blue book (wholesale) price."

Hospital Pharmacies  Small also said that hospital drug pharmacies were getting out of hand in their