The growing drug shortage crisis is the number one supply chain concern for providers nationwide says Novation, a group purchasing organization. Yet, even in these dire circumstances, there may be a glimmer of hope.
“This has been, without question, the overarching issue of concern for our members. It’s the number one topic we discuss,” said Steven Lucio, Novation’s director, clinical solutions, pharmacy. “(Providers) devote an inordinate amount of time to managing the shortage circumstances.”
The executive order issued by President Obama on Monday to reduce drug shortages is “an attempt to address something that has been getting more and more attention recently, but drug shortages are not new," said Lucio. "We’ve been dealing with them for the last decade.”
However, the executive order is “very helpful,” Lucio said, in the fight against drug supply disruptions.
“The executive order points out several things. It addresses expectations of the supplier community and also for the FDA itself,” said Lucio. “Everyone has a role to play. There’s no single reason why drug shortages are taking place. The (pharmaceutical) supply chain is very complex.”
While much attention has been given to gray market drug vendors recently for their high price mark-ups on hard-to-find drugs, Lucio said, “The gray market is not a cause of the shortages, it’s a symptom. There are many points of access in the supply chain, and it’s easy for products to slip through the cracks.”
While Lucio does not think the gray market is at fault for the shortages, he also does not think they are the answer. “Gray market companies don’t have anywhere near the volume to meet the demand,” he said.
Despite the growing number of shortages and the problems they pose for providers and patients, Lucio sees a glimmer of hope.
“Hopefully, the situation will improve. The FDA has said drug companies are doing a better job of giving them advance notice of a shortage,” he said. “As bad as it’s been, we can at least minimize the impact. With improved communication, I expect things to improve.”
“Drug manufacturers are investing money into production facilities and, at some point, they will come online,” added Lucio. “The hope is that these facilities will be more up-to-date and not as susceptible to breakdowns. Maybe this will also help alleviate some of the circumstances that we’ve seen the last few years.”