What We're Watching: December 4, 2018

SHORTAGE PROBS

A panel of industry experts met last week to discuss the root causes of drug shortages and solutions to the problem during a day-long meeting hosted by the FDA. Panel participants, including Premier, widely suggested that the lack of competition is a major barrier to improvement, and transparency and improved payment is needed.

What we’re saying: As part of the panel, Premier reviewed its findings on >span class="MsoHyperlink">causes of drug shortages and suggested solutions to the problem. We think there are three main reasons for drug shortages: 1. There are both time and financial barriers to market entry for manufacturers. 2. The FDA needs more information insight and authority. 3. Problems in the supply chain can increase and perpetuate shortages. Read more in our drug policy roadmap.

WHY CAN’T WE BE FRIENDS

Yet another healthcare merger was approved last week, just after CVS closed its $70B deal with Aetna (awaiting final approval), and Walgreens and Humana said they want to be BFFs too.

What we’re saying: Consolidation activity across healthcare has largely been driven by the need for clinical integration to succeed in a value-based care delivery environment. These new partnerships are creating a much more dynamic and robust competitive environment in healthcare. Given the needs of consumers today, and the capabilities of the companies that are getting closer to the point of care, these moves aren’t just “nice to do.” They’re essential for the future. We’re working with several health systems that are taking steps to evolve in this way to better meet the needs of their consumers.

IN CASE YOU MISSED IT

• Why Health Systems Need to Strategically Align with Skilled Nursing Facilities Now
• Premier CEO Susan DeVore to Keynote HIMSS19
• Industry Experts, Clinicians Seek Solutions to Drug Shortages
• The Five Elements of Optimal Care Delivery: Organizational Readiness
• Susan DeVore Inducted into the North Carolina Business Hall of Fame
• Premier Talks What’s Next for Healthcare Post Midterms on NPR
• Premier Inc. Survey: Nearly 75% of Health Systems Report Interest in Value-Based Contracting

What We’re Watching is a weekly blog focused on the current events Premier is following and their relevance to the work of Premier and its members.