Five organisations that represent more than 450 hospitals in the US are working together to develop a not-for-profit generic drug company to make more essential medications more widely available and less expensive.

Drug prices
The organisations that will be collaborating on this project include Intermountain Healthcare (as project lead), Ascension, SSM Health and Trinity Health with consultation from the US Department of Veterans Affairs. The new company that is formed is intended to be an FDA approved manufacturer and will either directly manufacture generic drugs or sub-contract manufacturing to reputable contract manufacturing organisations.
It is hoped that by manufacturing the generic drugs through this not-for-profit company, patients will be able to benefit from an alternative option to the current medications that are being priced unfairly. Additionally, the company will also focus on stabilising the supply of generic medications that are considered to be essential, many of which are in short supply.
“It’s an ambitious plan but healthcare systems are in the best position to fix the problems in the generic drug market,” said Dr Marc Harrison, president and CEO of Intermountain Healthcare. We witness, on a daily basis, how shortages of essential generic medications or egregious cost increases for those same drugs affect our patients. We are confident we can improve the situation for our patients by bringing much needed competition to the generic drug market.”
Laura Kaiser, president and CEO of SSM Health, stated: “All Americans deserve access to high-quality, affordable care. The best way to control the rising cost of healthcare in the US is for payers, providers and pharmaceutical companies to work together and share responsibility in making care affordable. Until that time, initiatives such as this will foster our ability to protect patients from drug shortages and price increases that limit their ability to access the care they need.”
“This initiative has the potential to greatly expand the availability and affordability of critically needed medications for millions of Americans, especially for people living in poverty and those most vulnerable,” added Anthony R. Tersigni, EdD, FACHE, president and CEO of Ascension. “Rather than waiting and hoping for generic drug companies to address this need, we are taking this bold step on behalf of those we are privileged to serve. I'm pleased to see our respective systems come together along with the VA to ensure affordability and access to these essential medications.”“For people in the US, there is a dangerous gap today between the demand and supply of affordable prescription drugs,” explained Richard J. Gilfillan, MD, CEO of Trinity Health. “If the only way to provide our communities with affordable drugs is to produce them ourselves, then that is what we will do. We look forward to more healthcare systems around the country joining this people-centred effort.”
Dr Carolyn M. Clancy, executive in charge, Veterans Health Administration emphasized: “As an organisation which must have an affordable and stable supply of generic pharmaceuticals to fulfil its healthcare mission, the Department of Veterans Affairs looks forward to the value this new company will bring to healthcare in the United States and applauds Intermountain Healthcare, Trinity Health, SSM Health, and Ascension for this initiative. Increasing generic drug manufacturing capacity will generate a more stable generic drug supply and will reduce the negative clinical impact of chronic drug shortages, including the impact on our nation’s veterans.”
The formation of this new not-for-profit company will be guided by an advisory committee comprising experts from the pharmaceutical industry, business and government.