Editor’s Note: This article originally appeared on Premier’s website.
Many health systems are zeroing in on drug spending as a prime target to better manage margins and limit the growth of expenses.
It’s no surprise that skyrocketing drug prices are top of mind for providers. Premier projects a 3.8 percent price inflation on pharmaceuticals over the next year, meaning the cost of drugs is unquestionably affecting how health systems operate, manage budgets and provide patient care. Estimates show that drug shortages alone cost health systems upwards of $500 million a year as they source more expensive substitutes, and refocus their workforce to find alternative products and manage inventory.
Basic economics would indicate that overpriced drugs and shortages are a symptom of an uncompetitive and unhealthy drug market. Today’s drug market is defined by a lack of viable alternatives (such as generics, biosimilars or additional products in the same therapeutic class) and legal strategies and business practices that stymie competition. Click here to continue>>
News From Our Partners
