Why does a $30 generic cost $900 at your pharmacy? Mark Cuban—entrepreneur, Shark Tank host, and founder of the Mark Cuban Cost Plus Drug Company—joins Dr. Rohan Ramakrishna to expose the hidden economics strangling American healthcare.
Cuban breaks down his trust formula (transparency divided by self-interest), explains how high deductibles have turned hospitals into subprime lenders, and reveals the games pharmacy benefit managers play with rebates, GPOs, and biosimilars. He shares how Cost Plus Drugs launched with 111 medications and a simple 15% markup—and why the industry is terrified of what happens when he gets access to brand-name drugs.
From modular manufacturing pods that could produce gene therapies in hospital parking lots to direct contracting that eliminates prior authorizations entirely, Cuban offers a blueprint for dismantling opacity.
His message to physicians? You're underpaid, overworked, and dealing with mishigas that shouldn't exist. Here's how we fix it.
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(00:00) Intro
(03:30) Mark Cuban joins the show
(03:48) First hustle: Baseball cards and garbage bags
(05:15) Learning to sell at age 12
(05:23) Broadcast.com origin story
(06:39) Follow your effort, not your passion
(08:13) Getting paid to learn after college
(09:42) AI as the great equalizer for entrepreneurs
(10:29) How a cold email led to Cost Plus Drugs
(12:06) Building a pharmacy on radical transparency
(13:03) Where the 15% markup came from
(13:30) The trust formula: Transparency divided by self-interest
(14:36) Why healthcare economics are so broken
(16:14) Health insurance is not a proxy for healthcare
(17:18) How hospitals became subprime lenders
(18:57) Prior authorizations and the 97-year-old veterinarian
(20:45) Facilities fees and the overhead spiral
(22:45) Cost Plus Wellness and direct contracting explained
(25:24) How hospitals should structure contracts
(27:23) Negotiating as a cash-pay customer
(28:29) The $64,000 ankle surgery bill
(29:50) Inside Cost Plus drug manufacturing
(31:55) Modular pods for gene therapy and biologics
(33:32) Selling to hospitals through the Cost Plus Marketplace
(34:25) Supply chain vulnerabilities and key starting materials
(35:59) How Cost Plus stacks up against Amazon and Costco
(38:07) Why CVS and Express Scripts aren't really transparent
(39:38) The PBM that lied about using Cost Plus
(41:09) Rebate GPOs: The hidden fee machine
(43:46) Why Cost Plus can't get brand-name drugs
(46:46) The flow of money on a $600 prescription
(49:03) What happens if PBMs disappear tomorrow
(51:20) GLP-1s and the direct-to-consumer shift
(53:05) Stop using the big PBMs
(54:37) Communication: The key ingredient in good medicine
(56:19) Why medical AI will fragment into silos
(59:24) Mark's message to doctors in 2025
(01:01:58) Closing thoughts