Combatting Drug Shortages

Drug shortage is a major issue in hospitals causing jeopardy to patients who want to access these drugs. This being a complex issue, Group Purchasing Organization (GPO), and healthcare supply chain are dedicated to mitigating this crisis. In collaboration with the Department of Health and Human Services (HHS), Food and Drug Administration (FDA), distributors, manufacturers, and hospitals, GPO is committed to ensuring that patients and hospitals access these drugs.

GPO and healthcare supply chain are working hand in hand and have come up with innovative measures to combat generic drug shortage. These actions include:

Price adjustment: GPO agreements are the product of modest market negotiations. Since the price of the contract keep on changing, drug companies continually adjust pricing considering market situations.

Voluntary contracting: Hospitals are free to buy drugs through their GPOs since procuring agreements are free. They can purchase drugs off the GPO contract too.

Data tracking: GPOs can keep a check on drug scarcities, and whenever there is a likelihood of supply chain interruption, they can strategize members.

Manufacturer evaluation: GPOs assess manufacturer consistency when locating and rewarding contracts. This practice helps lessen exposure to drugs shortages.

Migration to other products: Whenever there are drugs shortages, GPOs collaborate with healthcare providers and hospitals to guarantee quick and safe movement.

Increased supplier-provider communication: When a particular product is on demand, GPOs communicate with its supplier partners. When communication is done in advance, manufacturers have ample time to plan for production capacity.

Causes of drugs shortage include quality issues, manufacturer problems, and lacking suppliers in time when supply is distracted. GPOS and healthcare supply chains ensure these problems are solved and make drugs accessible to patients. The industry is committed and guarantees every patient to get medications whenever they need them.

The healthcare supply chain concurs with the new regulatory, governmental, and private sector activities meant to solve the drug shortage emergency. GPOs are devoted to moderating this public health calamity in totality.


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