Modern Healthcare January 19, 2019
The middlemen of group purchasing organizations and pharmacy benefit managers remain a central part of the drug pricing and shortage debate.
Like Premier, other GPOs and wholesale distributors have created private drug labels. They contract directly with a manufacturing company to make a generic drug under their own brand—just one of the ways they can affect the supply of drugs.
When a shortage occurs, GPOs say they work closely with pharmaceutical manufacturers to find other sources, said Todd Ebert, CEO of the Healthcare Supply Chain Association, which represents GPOs—organizations that claim to save hospitals money by extracting volume discounts from suppliers.
Each GPO works with the Food and Drug Administration to expedite applications for therapies in short supply...
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