Comment by DrScientist

>As long as the value created is more than the cost of the treatment, then it's a net-gain for the economy even if it's a net loss for that singular business.

Specifically on this - this is pretty much how pharma companies negotiate prices with governments - using quality adjusted years of life or saving from alternative costs.

> If all you're judging is the first-order impacts on a single business,

However you do have to pay the companies involved otherwise the activity doesn't happen ( as the companies will go bust and cease to exist ) - cf lack of significant research into new antibiotics.

That's why the above happens.