Premier establishes ProvideGx in effort to supply shortage generic drugs
Premier announced a company it has established to help ensure health systems have continuous and affordable access to shortage medications, as well as those in categories that lack competition. The company builds on Premier's eight-year track record of direct contracting for healthcare supplies and extends existing programs that are successfully providing uninterrupted access to more than 91 shortage stock keeping units. The company, ProvideGx, provides a vehicle for Premier to invest in innovative new business models and partnerships to address drug shortages, including partnering with quality generic drug manufacturers that can supply shortage products, co-funding the development of affordable products that address specific market needs, and securing contracts for active pharmaceutical ingredients to ensure a continuous supply as well as strategic sourcing agreements. ProvideGx has already partnered with five high-quality generic manufacturers to address a targeted pipeline of 60 crucial drugs, and expects to begin marketing additional shortage products next month, pending approval by the U.S. Food and Drug Administration. According to the University of Utah Drug Information Service, 224 vital medications are in current shortage nationwide, including antimicrobials, cardiovascular drugs, sedation medications, electrolytes, nutritional supplements and chemotherapy drugs. As a result of these persistent shortages, 96% of health systems report that securing an adequate source of supply is a near constant challenge. ProvideGx is guided by 31 Premier member health systems and the company's National Pharmacy Committee, representing more than 1,000 hospitals across the nation. Revenues from the new company are not expected to materially impact Premier FY 2019 results.