Four US hospitals, namely Winona Health, Boulder Community Health, Stanford Health Care, and Essentia Health, have joined nonprofit pharmaceutical company Civica to combat drug shortages.
Civica focuses on ensuring a stable supply of essential and generic sterile injectable medicines, which are critical for patient care and are often subject to supply disruptions.
Civica president and CEO Ned McCoy said: “Civica provides a consistent supply of essential, high-quality, generic medicines at a transparent price.
“Our model allows hospitals of all sizes, from small independent hospitals to large systems, to ensure supply and price stability, helping them to serve their patients.”
The US healthcare industry frequently struggles with drug shortages, with the Food and Drug Administration (FDA) reporting numerous medications, particularly sterile injectables, as regularly in short supply.
These shortages can force hospital staff to resort to alternative therapies that might be less effective or carry higher risks.
Winona Health Pharmacy director Jill Ender said: “Our community has counted on Winona Health for more than 130 years.
“Partnering with Civica helps us ensure we’ll continue to have access to the pharmaceutical resources we need to care for people, regardless of external circumstances that may affect our normal supply chain.”
Civica's approach involves direct, market-stabilising contracts with hospitals, bypassing intermediaries. This allows doctors and pharmacists at member hospitals to select the drugs supplied by the company.
The company offers equal cost-plus pricing to all members, irrespective of the hospital's size, and maintains a six-month buffer inventory.
It also prioritises sourcing from suppliers in the US to guarantee high-quality products.
Established by US health systems, Civica was created to solve the persistent crisis of drug shortages.
The company currently supplies approximately 80 drugs, including antibiotics and cardiovascular and pain medications, which are frequently used in urgent care and have been identified by member hospitals as being at risk of shortages.
