Provider Consortium Will Try 'DIY' Solution To Generic Shortages, Pricing

Four health care systems representing 280 hospitals, with input from the US Department of Veterans Affairs, plan to make and sell their own generic drugs, focusing on those vitally needed by hospitals, with "appropriate" pricing.

Hospital exterior

While some desperate hospitals have set up parking lot compounding shops to help with drug sourcing, a group of health care providers is taking a more substantial approach, teaming up to manufacture and sell generic drugs at cheaper prices than industry firms have been doing. In a Jan. 18 announcement, Intermountain Health Care Inc., Ascension, SSM Health and Trinity Health said they will form their own non-profit generic drug maker to address shortages and price hikes that have plagued hospitals and patients.

Utah-based, non-profit Intermountain Healthcare will lead the effort, joined by SSM and Trinity (both Catholic) and faith-based Ascension, and the...

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