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What We’re Watching: October 29, 2019


We hear that major legislation may be introduced this week to address drug shortages. There are more than 100 drugs currently in shortage, creating all sorts of havoc for caregivers and patients alike and adding $230 million a year to U.S. drug costs. There’s also a House hearing this Wednesday focused on the pharmaceutical supply chain.

What we’re saying: We’ll be sharing what we’re doing to address shortages and our thoughts if new news drops. Did you know we recently resolved the cysteine hydrochloride shortage? Also, next Tuesday, November 5, Premier and other provider organizations will be co-hosting a lunch policy briefing on drug shortages at the Capitol Visitors Center in Washington, DC. Panelists include representatives from Stanford University School of Medicine, MaineHealth and Fairview Pharmacy Services. Senator Susan Collins of Maine has also been invited to deliver opening remarks.


Last week, the Health Care Payment Learning & Action Network (LAN), a public/private partnership created to foster high quality, efficient and affordable care via alternative payment models (APMs), held its annual summit. At the event, HHS and the LAN announced new goals to accelerate the movement to APMs as well as support for increased interoperability and access to data. The LAN’s new goals outline the percentage of healthcare payments that should be tied to two-sided risk, shared accountability APMs.

What we’re saying: Premier released a statement on LAN’s goals, reaffirming our support for a movement towards value-based payment models. We are helping health systems prepare for the movement to shared risk APMs every day, and as partners of the LAN with Susan DeVore (our CEO) on its CEO Forum, we have inside knowledge on how to achieve these goals.


The FDA issued a statement regarding concerns about the potential for medical device shortages as facilities that sterilize devices close. Concerns about leaks of ethylene oxide gas forced the closure of two large plants in Georgia and Illinois earlier this year, with another company’s Georgia plant at risk for closure as well.

What we’re saying: Premier has been monitoring this issue for several of months, closely tracking developments and working with members and the FDA to manage device shortages. On November 6 and 7, the FDA will be hosting the “General Hospital and Personal Use Devices Panel of the Medical Devices Advisory Committee Meeting,” and Premier will be testifying.


Our Premier Applied Sciences team announced a partnership with GE Healthcare to develop and bring a French-inspired same-day breast cancer diagnosis and treatment model to the United States.

What we’re saying: Launched in 2004 at the Gustave Roussy Cancer Campus in France, the One-Stop Clinic offers a coordinated patient journey from initial appointment through diagnosis and treatment plan in one place, on one day, with one team. GE Healthcare and Premier have convened an advisory board to evaluate the One-Stop Clinic model and articulate best approaches to redesign it for the U.S. market.


Premier announced the launch of a disruptive e-commerce marketplace for healthcare and business supplies called Stockd.

What we’re saying: Stockd, which is geared toward small- and mid-sized healthcare businesses in the non-acute healthcare space, brings together reliable and innovative manufactures to the alternate-site supply chain on a single, online purchasing platform. Premier is proud to be partnering with both small business entrepreneurs and socially conscious sellers.


HHS recently released two proposed rules that would create new exceptions and safe harbors for certain value-based arrangements under the Medicare physician self-referral law (Stark Law), Federal anti-kickback statute and civil monetary penalties beneficiary inducement regulations. The proposed rules would create new self-referral exceptions and safe harbors for entities engaging in care coordination and innovative value-based arrangements, allowing for increased flexibilities as entities assume greater downside financial risk.

What we’re saying: Premier will be hosting a webinar on Wednesday, October 30, to go over these rules with our very own Aisha Pittman, VP, Policy and Melissa Medeiros, Director, Payment Policy and Analysis. They will be joined by Pierre Poison, Principal, Health Policy Alternatives. You can register for the webinar here.


What We’re Watching is a bi-weekly blog focused on the current events Premier is following and their relevance to the work of Premier and its members. Check out our last update!

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