In an effort to help ensure health systems have continuous and affordable access to shortage medications, Premier Inc has announced a new company they created to address these shortages.
Currently, 224 medications are in shortage nationwide. These include, antimicrobials, cardiovascular drugs, sedation medications, electrolytes, nutritional supplements and chemotherapy drugs. Due to these shortages, 96% of health systems say that securing an adequate source of supply is often a challenge.
The new company, ProvideGx, will build upon Premier’s record of direct contracting for health care supplies. ProvideGx will extend existing programs that currently provide access to uninterrupted access to over 90 shortage stock keeping units.
“As the trusted sourcing organization for hundreds of pharmaceutical products, aggregating the purchasing demand of hundreds of thousands of providers, Premier is already a recognized leader in preventing drug shortages and price spikes,” said Michael J. Alkire, chief operating officer of Premier. “Given our deep expertise, data-driven insights on the supply channel and unique partnership model with our members, ProvideGx is a natural extension of Premier’s overall approach. Consistent with our member-led direct contracting supply chain strategy, this initiative is expected to take Premier’s work to a new level by partnering with and investing in companies that can reliably source shortage drugs via an efficient and price-competitive strategy.”
According to a company press release, ProvideGx will allow Premier to invest in innovative new business models and partnerships aimed at addressing drug shortages. Specifically, this will allow Premier to partner with quality generic drug manufacturers that can supply shortage products, co-fund the development of affordable products that address specific market needs, and secure contracts for active pharmaceutical ingredients to ensure a continuous supply as well as strategic sourcing agreements.
Currently, ProvideGx has partnered with five generic drug manufacturers. The partnerships address a targeted pipeline of 60 crucial drugs. The company hopes to begin marketing additional shortage projects next month—based on approval by the FDA.
“For years Premier has been taking innovative steps to solve the complex drug shortage problem, and we are excited that they are bringing real solutions to the market,” said Paul Rathbun, senior executive vice president and chief financial officer of AdventHealth and chair of Premier’s Member Value Improvement Committee.
Premier Inc. Premier Inc. Announces Expanded Effort to Supply Shortage Generic Drugs [press release]. https://www.businesswire.com/news/home/20190114005440/en/Premier-Announces-Expanded-Effort-Supply-Shortage-Generic. Accessed January 15, 2019.
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