Shortages of common generic drugs have increased in recent years in the United States. And this resulted in a sharp increase in prices. Hospital purchasing agents are looking for new suppliers for the drugs patients need. Clinicians are also scrambling to find alternatives. To tackle the problem head on, Intermountain and several other US hospital systems are starting their own non-profit pharmaceutical company. The goal: to fight against rising prices and chronic shortages.
Civica rx
Dr. Marc Harrison is President and CEO of Intermountain Healthcare, a system of 22 hospitals based in Salt Lake City. He explains on their site : “It’s an ambitious plan, but health systems are in the best position to solve the problems in the generic drug market. We see daily that shortages of essential generic drugs or the dramatic cost increases for these same drugs affect our patients. We are convinced that we can improve their situation by making the generic drugs market competitive ”. Called Civica rx, the company is expected to be independent and in collaboration with Ascension, SSM Health and Trinity Health, as well as in consultation with the United States Department of Veterans Affairs. Together, these organizations represent more than 450 hospitals in the United States.
14 common generic drugs
On the program of this new company, therefore, the marketing of 14 common generic drugs that have been rare and whose prices have increased in recent years. As of yet, the names of these drugs have not been revealed. Civica Rx will submit an application to the Food and Drug Administration, American body which authorizes the marketing of foodstuffs and medicines. The company will likely have to start by contracting with existing manufacturers to design the drugs under its label. It can then develop its own facilities.
Civica RX will require hospitals to commit to long-term contracts to buy the drugs at fixed prices, even if another generic company cuts prices. “About 120 healthcare companies, or about a third of US hospitals, have already contacted the organizers of Civica Rx to ask them to participate in the transaction.”, says Marc Harrison. The initiative could inspire other countries. In France, the risk of a shortage of life-saving drugs also threatens.
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