Fund drug research through public-private hybrids and grants, instead of intellectual property monopolies for the first x years of the drug. You can then spread the cost of developing the drug over a generation or two, instead of making the first people to be treated foot the entire bill. The public will own the intellectual property, the government can decide what diseases to fund/fight, and private companies still have incentive to perform research. All the while, private research can still compete for other treatments, or rare diseases with funding.