Todd Ebert
By Todd Ebert
At a moment of great change for the healthcare system in America, hospitals and their patients face uncertainty and significant new challenges. The Healthcare Supply Chain Association (HSCA) member group purchasing organizations (GPOs) are the sourcing and purchasing partners to virtually all of America’s 7,700+ hospitals, as well as the vast majority of long-term care facilities, surgery centers, clinics, and other healthcare providers. In 2017, we will continue to advocate for policy solutions to help reduce costs and increase competition and innovation in the healthcare market and enable providers to focus on their core mission: providing first-class patient care.
ACA repeal
Both the incoming administration and Congress have indicated that the future of the Affordable Care Act (ACA) will be among the top priorities. The American Hospital Association (AHA) and Federation of American Hospitals (FAH) recently estimated that the financial impact on hospitals of repealing the ACA without a replacement and without eliminating scheduled reimbursement reductions could be hundreds of billions of dollars.
We believe that Congress and the incoming administration should carefully consider the full range of consequences of repealing the ACA without a simultaneous replacement plan that continues to provide coverage to consumers and does not disrupt state budgets.
Generic drugs
Patients have long relied on generic drugs to reduce costs and increase access to essential medications. Recently, however, significant price spikes for some generic drugs have begun to jeopardize patient access to affordable healthcare.
Price spikes happen when there are two or fewer manufacturers for a given product; because of a lack of competition, high prices go largely unchecked. The current backlog for abbreviated new drug applications (ANDAs) at the U.S. Food and Drug Administration (FDA) has exacerbated the problem of price spikes.
The marketplace responds best when more than two manufacturers compete to create a natural price reduction for consumers. HSCA will continue to advocate for priority review of ANDAs for products when significant price spikes occur. We look forward to working with FDA, as well as Congress, to advance this pressing policy priority and help spur competition through market-based solutions.
Drug shortages
Despite a decline in new drug shortages, existing and ongoing prescription drug shortages continue to be a public health crisis and jeopardize patient access to essential medications. The FDA, Government Accountability Office (GAO), Congress, academia, and others have thoroughly examined the issue of drug shortages and identified manufacturing problems, quality control issues, and barriers to getting new suppliers online as the primary causes of shortages. Increasing competition in the market is a crucial step toward preventing future drug shortages.
Biosimilars
Biosimilar drugs have the potential to increase patient access to life-saving treatments and to reduce costs for the entire healthcare system. One recent study projected that biosimilars would save the system $250 billion over 10 years.
HSCA and its members are working with FDA to help ensure a pathway to market for biosimilars that prioritizes patient safety and encourages development and uptake of these less-costly therapies. Specifically, the ability to safely substitute FDA-approved biosimilars for reference biologics will be critical to realizing the full cost-savings and access potential of biosimilars.
It is important for the FDA to issue clear and robust guidance on the requirements for a biosimilar product to obtain an “interchangeable” designation. FDA’s guidance on interchangeability will have an impact on state level substitution and, ultimately, provider and patient access to biosimilars.
As we look ahead to 2017, HSCA and its members are committed to lowering costs and increasing competition and innovation in the healthcare marketplace. GPOs advocate for common-sense, innovative, market-based solutions to help providers confront the myriad challenges facing the healthcare supply chain. HSCA and its members remain committed to helping hospitals and healthcare providers deliver effective and affordable care to the patients they serve.
Todd Ebert R.Ph. is the president and CEO of Healthcare Supply Chain Association