A Proven Model to Combat U.S. Drug Shortages

A Proven Model to Combat U.S. Drug Shortages

By leaning into transparency, eschewing rebate schemes, and cutting out middlemen, this nonprofit is able to significantly lower the market price of insulin.

April 25, 2024

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Drug shortages continue to plague the United States. In many ways, the problem is the result of deficiencies in the current pharma market. But a model for addressing this problem is showing that it isn’t intractable. The company employing this model is Civica Rx, which was established in 2018 by health systems and philanthropies to address shortages of generic sterile injectable drug. This article discusses the elements of its model and its achievements.

Drug shortages have been a chronic problem in the United States for well over a decade. A newly published report from the American Society of Health System Pharmacists (ASHP) shows drug shortages are at a record high of over 300 essential medications in short supply. Currently, on a national basis, we are seeing an acute exacerbation of shortages as several manufacturers experience quality problems, causing them to leave the market permanently or temporarily.

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Dan Liljenquist is senior vice president and chief strategy officer at Intermountain Health and board chair of Civica Rx.

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