Drug Shortages Costing Hospitals $200 Million, Study Finds

by admin | April 1, 2011 8:56 pm

April 1, 2011— Prescription drug shortages are forcing hospitals to spend an extra $200 million a year on more expensive substitutes and exposing patients to greater risk of medication errors, a leading group purchasing organization (GPO) reports.

According to the study by the Premier health care alliance[1] , providers are spending an extra 11 percent more on average for shortage products. The true additional cost is probably higher, it said, because the study did not account for purchases from the “gray market” or for the extra labor involved in tracking down and managing substitute products.

Safety-net hospital pharmacies have been reporting[2] that shortages of pain medicines, emergency drugs and some oncology treatments have reached unprecedented levels.

Premier surveyed more than 300 pharmacy experts from outpatient and retail pharmacies, hospitals, specialty care centers and long-term care facilities. Between July and December 2010, 89 percent experienced at least one shortage that could have caused a medication safety issue and 53 percent experienced six or more. The respondents said shortages forced them to cancel or delay patient care (80 percent), to compound a drug (60 percent), or to pay inflated prices to a gray market vendor (42 percent).

Nearly 250 Drugs Affected

Nearly 250 drugs were either in short supply or unavailable during the second half of 2010 while more than 400 of their generic equivalents spent five or more days on back order, Premier said. Many of those in short supply or unavailable last year remain so in 2011 and the problem appears to be growing.

The study said shortages are being caused by problems with raw materials; decisions to discontinue unprofitable products; consolidation in the industry; safety and other regulatory issues that cause shutdowns; and stockpiling.

U.S. Sens. Amy Klobuchar (D-Minn.) and Bob Casey (D-Penn.) have introduced legislation, S. 296 , that would require drug manufacturers to give the Food and Drug Administration (FDA) early notification of any incident that would likely result in a drug shortage. It has been referred to the Health, Education, Labor, and Pensions Committee but no hearings on it have been held as yet.

“Physicians, pharmacists and patients are currently among the last to know when an essential drug will no longer be available,” said Klobuchar. “That’s not right. It is important that we have better coordination between the pharmaceutical industry, the FDA and health care providers so patients don’t lose access to the medications they depend on.”

“Several major hospitals in our state have experienced shortages that are jeopardizing patient care,” said Casey. “This bill will provide the knowledge required to help address and prevent future shortages.”

Source URL: https://340bemployed.org/drug-shortages-costing-hospitals-200-million-study-finds/

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