The Health Care Utility Model: A Novel Approach to Doing Business

The growth of the Civica Rx health care utility model of addressing shortages of pharmaceutical supplies for hospitals has been gathering momentum since its launch in 2018. The concept is to bypass the major drug makers and to manufacture or subcontract for generic pharmaceuticals that its 1,400-plus member hospitals need. What’s unique about the venture is that it is established as a nonstock, nonprofit 501(c)(4) social welfare organization. The money to run the operation comes from the customers (the hospitals) and philanthropic...