Federal response to vital Medicine shortages in US hospitals

A New York Times article (Oct 31, 2011) describes Federal attempts to ease shoratges of sterile injectables that constutue 74 % of drug shortages.  The government blames market concentration – 90 % of the medicines are bought by five hospital purchasing groups, and one global company supplies 90 % of the supply in many cases.   prices have increased eighty fold in some cases – a leukemia drug price went up from $ 12 to $ 990 per vial.  Will the proposed solution to increase the number of inspectors, by charging a fee to generic companies, resolve the shortage problem ? Would making it the legal responsibility of manufacturers to aniticpate shortages resolve the problem ? Or should the federal government intervene more directly by stockiling or manufacturing the drugs ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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