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Manny Saltiel1, Marvin Finnefrock1
1Comprehensive Pharmacy Services, Costa Mesa, CA, USA.
Generic drug prices surged in the 2010s due to various factors, impacting hospital budgets significantly. While compounding pharmacies offer a potential solution, they carry risks requiring careful evaluation.
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Area of Science:
- Health Economics
- Pharmaceutical Policy
- Drug Manufacturing
Background:
- Significant price increases observed in oral and injectable generic drugs throughout the 2010s.
- Multiple contributing factors identified, including reduced competition, supply chain disruptions, and market consolidation.
- Over 90% of hospital administrators report substantial budget impacts from rising drug costs.
Purpose of the Study:
- To explore the multifaceted reasons behind dramatic generic drug price inflation.
- To assess the financial implications of increased drug prices on healthcare institutions.
- To evaluate the potential and risks associated with compounding pharmacies as a solution.
Main Methods:
- Review of postulated reasons for price increases.
- Analysis of reported impacts on hospital budgets.
- Examination of compounding pharmacies as an alternative, considering associated risks.
Main Results:
- Identified numerous factors contributing to generic drug price hikes.
- Confirmed significant financial strain on hospital budgets due to these increases.
- Highlighted compounding pharmacies as a viable but risky alternative, necessitating thorough vetting.
Conclusions:
- The rise in generic drug prices presents a considerable challenge to healthcare budgets.
- Compounding pharmacies may offer a partial solution but require stringent safety and quality oversight.
- A careful vetting process is essential to mitigate the risks associated with compounding pharmacies.