Hospital labor costs related to drug shortage management have significantly increased, from $359 million in 2019 to $894 million in 2024 — a nearly 150% increase, according to a Vizient report published June 17.
Vizient surveyed 132 of its clients to measure the financial toll of medication shortages. Respondents included pharmacy and procurement leaders at health systems, medical centers, children’s hospitals, critical access hospitals, specialty hospitals, clinics and ambulatory care facilities.
Pediatric facilities were particularly strained, as they monitored 25% more shortages and exceeded pharmacy budgets more often than general facilities.
Overall, hospitals and other healthcare facilities spent 20.2 million hours in 2024 managing these shortages. In 2019, that figure was 8.6 million hours.
“To cope, most facilities shifted workloads onto already stretched staff, while only a fraction opted to hire additional pharmacy personnel,” the report said. “These findings underscore an urgent issue: Drug shortages aren’t just about supply — they’re draining time, money and an already fragile healthcare system.”
These shortages also disrupted patient care, survey respondents said. Forty-one percent reported outpatient infusion disruptions associated with drug shortages, followed by planned medical procedures, hospital admissions and emergency procedures.
To ensure care continuity, healthcare facilities often turn to secondary distributors — but this shift also raises costs. On average, relying on secondary distributors for essential medicines costs about 214% more than primary distributors, according to Vizient.
Access the report here.
