Fed Up With Drug Companies, Hospitals Decide to Start Their Own

  • Fed Up With Drug Companies, Hospitals Decide to Start Their Own

Fed Up With Drug Companies, Hospitals Decide to Start Their Own

The new company will either contract manufacturing to an existing company or get Food and Drug Administration approval to make medicines itself.

Currently, there are around 300 hospitals involved in the group to start the revolution in the drug business, with more hospitals expected to join.

Once the generic drugs are made, the health systems that are part of this group will need to purchase the medications to use in their hospitals, which could give the health systems a lot of power over the generic drug industry.

"These activities have resulted in some generic drugs increasing in cost by more than 1000% in just a few months, "Officials with Intermountain Healthcare said".

Dr. Schulman has studied the generic drug market and is advising the effort. These market factors are particularly problematic with older generic medications that hospitals rely on every day to take care of desperately ill patients.

Hospitals are getting into the generic drug business.

The NYT reports that some US hospital systems are planning to enter the generic drugs business in an effort to preserve the supply of key off-patent medicines at affordable prices. That announcement came from representatives today who said they'll partner with four other healthcare systems on a plan to start manufacturing low-priced, generic medications.

The declared aim of the venture is, "To help patients by addressing the often unwarranted shortages and high costs of lifesaving generic medications". We witness, on a daily basis, how shortages of essential generic medication or egregious cost increases for those same drugs affect our patients'. The best way to control the rising cost of health care in the U.S.is for payers, providers and pharmaceutical companies to work together and share responsibility in making care affordable.

Aggressive price hikes from certain drug makers and nagging product shortages have prompted the initiative.

Utah-based Intermountain Healthcare is leading the collaboration that includes two St. Louis area health systems, Ascension and SSM Health, in addition to Michigan-based Trinity Health and the Department of Veterans Affairs.

North-Dakota-based Trinity Health operates 93 hospitals in 22 states.

There are a number of explanations for generic drug shortages.

In other cases, some of the companies which make large portions of the drug simply stop making it, or a drug is only being produced by a single manufacturer.