72% of pharma execs say Intermountain's drug venture is not a threat

While a majority of drug industry executives do not view Salt Lake City-based Intermountain Healthcare's newly formed generic drug company as a threat, most healthcare providers say they'd do business with the new venture, according to a report from Reaction Data.

Intermountain Healthcare formed the nonprofit generic drug company in collaboration with St. Louis-based Ascension; Livonia, Mich.-based Trinity Health; St. Louis-based SSM Health and the U.S. Department of Veteran's Affairs, to address high drug costs and shortages. In total, the groups represent more than 450 hospitals in the U.S.

To assess the healthcare industry's response to the generic drug venture, Reaction Data surveyed 605 provider representatives — 63 percent of whom were physicians — 91 stakeholders from the drug industry and 53 individuals from the payer industry.

Here are six survey findings to know.

1. More than half (60 percent) of provider respondents and 64 percent of payer respondents were not aware of the drug venture.

2. However, 80 percent of provider respondents were optimistic or cautiously hopeful the venture will succeed.

3. A majority of provider respondents (90 percent) said they'd become a customer of the new drug company.

4. Seventy-two percent of drug industry representatives did not view the drug venture as a threat.

5. Forty-eight percent of payers said the drug venture will have a positive effect on the healthcare industry, and another 48 percent said the venture will have a neutral effect.

6. Seventy-seven percent of providers, 65 percent of pharmacists, 63 percent of payers and 48 percent of drug industry respondents thought other hospitals would follow suit and create similar drug ventures.

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