Drug Pricing and Shortages

The Kaufman analysis projected that drug expenses would grow by $1 billion in 2022. As an organization, CompleteRx is constantly monitoring the producer price index for prescription drugs. The past couple of years, levels have been around 1 to 1.5%, but as of December of last year they were up 4.6% or 4.8% and may even go as high as 7%.

In the year ahead significant drug pricing reforms will be rolled out in the U.S. – a result of the passage of the Inflation Reduction Act last year. However, lobbying groups are likely to present objections over how the law will actually be implemented, which may lead to further issues.

Inflation and supply chain costs have a trickle-down effect on drug pricing as well. In fact, supply chain costs represent the second largest expense for hospitals. Hospital pharmacies have always had to deal with pharmaceutical supply chain disruptions, but the pandemic magnified these issues. In particular it highlighted the challenges of predicting future disruptions and trying to develop strategies around purchasing decisions and stockpiling.

Being proactive and coming up with a systematic plan for drug purchasing and inventory control will help drive down costs and improve efficiency.

Source: https://www.completerx.com/blog/current-issues-facing-hospital-pharmacies/