March 10, 2022 – Premier recently released a new report with insights and recommendations on resolving drug shortages. For two decades, healthcare providers across the nation are having to navigate about 200 active drug shortages every quarter, affecting the price of the available drugs and the overall practice of patient care.
In the report, Premier makes recommendations for how to build a stronger, healthier, and more resilient pharmaceutical supply chain. While it can’t be fixed overnight, stakeholders need to collaborate to influence behaviors that trigger a shift towards quality and sustainability.
Here are some of the highlights:
- For Providers/Purchasers
- Hold transparent discussions with leaders and staff on the importance of quality in generic drugs.
- Communicate importance of supplier reliability over lowest cost.
- Empower purchasers with information shared through participation in the GPO contract vetting process.
- For Purchasing Groups
- Educate stakeholders on the need to move beyond a price conversation to a combined cost, quality, and outcomes discussion.
- Promote long-term contracting with suppliers that demonstrate manufacturing resiliency and quality investments
- Drive negotiations that focus on quality and sustainability
- For Suppliers
- Increase transparency on investments in manufacturing capacity and production schedules so partners can plan for committed volume availability.
- Share with contracting partners and providers to increase appreciation on quality as it relates to overall value.
- For Distributors
- Consider scenarios beyond cost minus to drive value. Cost-minus model relies on manufacturer fees which contribute to higher manufacturing costs and may lead to shortages due to decreased supply or manufacturer discontinuation.
- Permit flexibility in wholesaler contracts to account for alternative sourcing.
- Engage in conversations on when to employ first-in-first-out approach based on clinical need versus allocation based on usage history.