Currently, there are around 300 hospitals involved in the group to start the revolution in the drug business, with more hospitals expected to join.
Several major hospital systems, including Ascension, a Catholic system that is the nation's largest nonprofit hospital group, plan to form a nonprofit company that will provide a number of generic drugs to the hospitals.
"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".
Sick and exhausted of dealing with generic drug shortages and unpredictable price increases, five large US health systems are taking an unusual step, Fierce Pharma reports: they're forming their own nonprofit generic drug-maker.
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Liljenquist and Intermountain CEO Dr. Marc Harrison would not name the specific drugs or the conditions they treat because they said it would reduce competition once their new nonprofit organization enters the market. Furthermore, the company wants to address issues throughout the generic drug supply chain, including high prices and medicine shortages. According to Fierce Pharma, Stanicky wrote in a note that nonprofit hospitals make up a fraction of the market and that the new company will take time to get set up. "It's an ambitious plan, but healthcare systems are in the best position to fix the problems in the generic drug market".
Price hikes in the generic drug market strike critics as particularly arbitrary given that many of them have been around for decades. "I'm pleased to see our respective systems come together, along with the VA, to ensure affordability and access to these essential medications". The US Department of Veterans Affairs is also collaborating with the group.
"We're not looking to make an exclusive club here".
Dr. Carolyn M. Clancy, executive in charge of the Veterans Health Administration, applauded the effort. It includes two retired Amgen executives and former Centers for Medicare and Medicaid Services administrator Don Berwick. Drug-makers have responded by citing manufacturing upgrades to improve quality and supply.