High drug costs are keeping healthcare leaders up at night
Leaders consistently included shortages and drug pricing among their top concerns in the survey over the last two years.
A Premier survey shows rising drug costs and pharmaceutical management remain at the forefront of issues that healthcare leaders feel will challenge their systems in the next three years.
Premier's Economic Outlook survey features economic and industry trends affecting health systems. Its 91 respondents include C-suite, financial, supply chain and operations professionals, as well as physicians representing health systems nationwide. Premier conducted the survey online in winter 2017, and is part of the Economic Outlook report.
Results show more than 90 percent of respondents suggested that drug shortages will continue to be a problem for their organizations, and leaders consistently included shortages and drug pricing among their top concerns in the survey over the last two years.
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According to Premier, a recent FDA report showed almost 3,000 applications are still awaiting approval, and if the FDA keeps with the current pace of evaluating them, it could be up to four years until drugs being considered for approval actually hit the market and are able to challenge other manufacturers who hold market share.
Since a major factor impacting rising drug prices is limited competition of generic drugs, a vicious cycle of sorts is perpetuated by limiting competition.
Additionally, 90 percent of survey participants said growth in "personalized or precision medicine" will drive up their supply chain spend and almost 70 percent said their hospital or health system would have to open their own specialty pharmacy.
Specialty drugs associated with precision medicine carry high costs. Specialty pharmacies administer drugs, monitor patients for side effects and make sure the therapies are working. They also ensure financial assistance to patients who need it and practice cost reduction strategies like ensuring adherence to medication regimens to maximize patient outcomes, Premier said.
Biosimilars are also an emerging solution to capping specialty drug costs, but only four have been approved by the FDA, and only two actually made it to market. The others are mired in litigation.
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"While it's imperative to compensate for breakthrough innovations, a balance must be struck," said Michael J. Alkire, chief operating officer of Premier. "In our view, one of the best ways to ensure fair pricing is by driving increased competition and greater use of generics and biosimilars. At the same time, we also need to provide prescribers with apples-to-apples mechanisms they can use to compare products in a therapeutic category, evidence-based facts around which products deliver optimal quality at the best value and aligned financial incentives."
Twitter: @BethJSanborn
