The Food and Drug Administration unveiled a proposal Friday that would have hospitals subscribe to medicines needed to treat bacteria instead of paying for them individually or in bulk.
Under the plan, hospitals would pay a flat rate for access to a certain number of doses for an antibiotic, FDA Commissioner Scott Gottlieb said.
The move is aimed at encouraging drug companies to develop better antibiotics. FDA is trying to tackle the lack of incentives for drug companies to create medicines by creating a more stable stream of funding from hospitals back to the companies.
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