Question

Hi can you make a summary about this short article, and also tell me how it does affects me economically ?

HEALTH CARE

2 hospitals join consortium to trim drug costs

CIVIC

St. Luke's, Easton owner sign on

with company making generic meds

By Anthony Salamone

Of The Morning Call

Seeing no end to rising prescriptions costs and shortages in much-needed drugs, two area hospitals are joining to nationwide consortium that will produce generic medications for member hospitals without worrying about profits.

St. Luke's University Health Network and Steward Health Care, which owns Easton Hospital in Wilson , said Monday in separate news releases that they have signed on with Civica Rx, a not-for-profit company based in Salt Lake City.

"Civica has been calling this a free-market solution," said David Herold, St. Luke's senior director of planning and development. "It will bring competition in the form of a nonprofit company whose major focus is on patient care and not profits."

Civica Rx was established in 2018 by three philanthropies and seven major health care systems, including the Mayo Clinic, according to a news release.

Civica Rx says the initiative will result in lower costs and more predictable supplies of many medicines, helping to ensure that patients and their needs come first in the generic drug marketplace.

"Drug shortages have become a national crisis where patient treatments and surgeries are canceled, delayed or suboptimal," said Martin VanTrieste, CEO of Civica Rx.

The consortium says it is seeking approval as a manufacturer of generic drugs from the US Food and Drug Administration.

It will then either directly manufacture generic drugs or contract the manufacturing to suppliers. The group hopes to begin rolling out drugs sometime this year.

Civica Rx would only produce medications for hospitals, not for purchase at independent pharmacies or directly by consumers.

According to The Washington Post, Civica Rx is focusing on the price of transparency and stable supplies for 14 generic drugs used in hospitals, without pressure from shareholders to issue dividends or push to stock price higher.

Civica Rx did not disclose which specific drugs it's focusing on for competitive reasons. But Heather Wall, its chief commercial officer, said the company is looking to produce medicines for the drug companies.

She said drugs would include antipsychotics and anesthetics. She also said that it would be up to the member hospitals to "prioritize" the list.

Local hospital officials said the drug-shortage crisis in particular requires a new, highly collaborative approach to solve.

" Over the past decade, Steward has created a different kind of health care company, one that prioritizes wellness and unlocks access to high quality, affordable care, which aligns with the critically important mission of Civica, "said Dr. Joseph Weinstein, chief medical Officer of Steward Health Care, Easton Hospital's corporate owner.

Lehigh Valley Health Network, St. Luke's largest local competitor, is not part of the consortium, spokesman Brian Downs said.

However, in 2013, LVHN joined six other large health care systems in Pennsylvania and New Jersey to create an alliance to share ideas about several items, including purchasing.

LVHN remains a part of the group, called AllSpire Health Partners, Downs said, and the partnership has helped reduce costs in multiple areas, including pharmaceutical expenses.

"We continue to offer ways in which we can provide better care at a lower cost," Downs said.

Patient advocacy groups said they are interested in learning more about the project.

"While initiatives such as Civica Rx are an important step in addressing the crisis of drug shortages and rising prices in the hospital setting, lawmakers in Harrisburg must step up and take action in order to see real change for people across our state," said Antoinette Kraus director of the Pennsylvania Health Access Network.

Rising prescription drug costs are a significant, growing problem statewide, according to the Health Access Network, which works toward quality, affordable health care statewide. The Altarum Institute that found 7 in 10 Pennsylvanians in the United States.

It also showed that, across party lines, 9 in 10 Pennsylvanians want lawmakers to take decisive action to address the rising cost of prescription drugs.

The Lehigh Valley Business Coalition on Healthcare, which represents about 220 employers, according to its president, Carl Seitz. I said the group would like to learn more.

Seitz said the Bethlehem organization has been involved in at least 10 years in a group-purchasing plan with Express Scripts, one of the country's big three pharmacy-benefits managers, that has saved its members "tens of millions of dollars" annually.

Civica Rx said Monday that 12 health systems agreed to join, representing about 250 hospitals nationwide. They are collaborating with seven large health systems, including the Mayo Clinic, which has boosted the total to about 750 hospitals all told.

In addition to St. Luke's and Steward, the other health systems members are Monday: Advocate Aurora Health, Allegheny Health Network, Baptist Health South Florida Franciscan Alliance, Memorial Hermann Health System, NYU Langone Health, Ochsner Health System, Sanford Health, Spectrum Health and UnityPoint Health.

[email protected]

610-820-6694

Answer 1

The article mostly emphasizes about two hospitals who integrate as consortium with Not for profit conpany to create generic drugs at least cost without seeking profit and just focussing as free market to curb rising prescription costs.

Civica Rx the not fir profit organisation seeks to provide only hospitals and drug conapnies and not pharmacy stores.

LVHN with other six other partners too established integration to reduce costs of drugs. Also lawyers must check implementations of prices of drugs so that citizens get accessibility and affordability with quality of drugs.

With growing momentum the article concludes that more than 12 health systems and 250 hospitals have joined this pilot project to make sure consumers get affordable health care.