Sick of high drug prices, insurers join hospitals to make their own generic medications

CNN

23 January 2020 - Everyone complains about high drug prices. But hospitals — and now insurers — are trying to lower costs by manufacturing their own generic medications.

A consortium of seven hospital systems and three philanthropies came together to found Civica Rx in the fall of 2018. The non-profit venture works with generic drug companies to manufacture medications that are in short supply or subject to price spikes.

These shortages force hospitals to look for alternative — and at times more expensive — supplies, which can cost them a total of hundreds of millions of dollars a year.

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Michael Wonder

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Michael Wonder

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Medicine , US , Pricing