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Consumers may incur increased costs in the form of higher out-of-pocket costs, higher insurance premiums, and adverse health outcomes as a result of a drug shortage. Healthcare systems also incur costs to manage or mitigate drug shortages.
How much does a drug shortage cost?
Total costs using our base case assumptions reached $1.45 billion in the US and 63 million in the EU. The large difference is explained by the inclusion (for US) or not (for EU) of costs associated with price increases of the drug in shortage and its alternatives.
Why is the US having drug shortages?
Drug Shortages can occur for many reasons, including manufacturing and quality problems, delays, and discontinuations. Manufacturers provide FDA most drug shortage information, and the agency works closely with them to prevent or reduce the impact of shortages.
How much do drugs cost the US each year?
The Value Of Addiction Treatment ing to NIDA, drug addiction and substance abuse cost the United States more than $600 billion each year. Addiction treatment (such as drug detox and inpatient and outpatient rehab) is much cheaper in the long run than the price of addiction.
How much do drug shortages cost the US each year?
The annual labor costs of drug shortages have been estimated to be an additional $216 million. The increased frequency of drug product shortages has also created nontraditional distributors, known as gray-market, open-market, or alternative suppliers.
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The Impact Of Group Purchasing Organizations On Drug
by C Deroo 2018 Cited by 5 GPOs were formed with the purpose of consolidating buyer power for hospitals to secure the best possible prices for medical supplies, including
Do GPOs Play a Role in Drug Shortages? Long-Standing
by S Barlas 2019 Cited by 1 There is no evidence that GPOs are a cause of drug shortages. PADS is a small fringe group with no apparent supply chain experience that promotes conspiracy
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