NEJM September 13, 2023
Carter Dredge, MHA and Stefan Scholtes, PhD
The first empirical evidence of the not-for-profit “health care utility” model indicates improved access to commoditized generic drugs at reduced prices for a member health system.
Summary
This article focuses on the value of introducing novel business models into health care to address market failures that are hurting people — delving deeply into learning from real-world examples within the generic drug supply chain and its failure to supply critical medicines reliably at a low cost. Some problems in health care are so complex that traditional private-sector or governmental interventions alone have not been able to solve the problems. In an original response to ongoing generic drug shortages, in 2018, seven U.S. health systems and three philanthropic organizations founded a novel...
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