Non-acute facilities are especially vulnerable to the effects of drug shortages because they tend to have smaller inventory and more lean operations than hospitals. This means ambulatory care providers can be at risk when supply chain disruptions impact pharmaceutical drug supplies.
“The increase in the frequency and number of drug shortages, along with general inflation and higher labor costs, are having an impact across all industries,” the report notes. “As a result, provider budgets will continue to be overrun if drug shortages continue to worsen.”
THE EFFECTS OF DRUG SHORTAGES
No single factor causes drug shortages. Instead, they’re the result of several issues across the supply chain, causing providers to devote more staff time to tracking inventory, sourcing alternative pharmaceutical options and managing patient communications.
Facilities have responded by shifting workloads onto already stretched-thin staff, with only a small number of organizations hiring additional pharmacy personnel. “These findings underscore an urgent issue: Drug shortages aren’t just about supply—they’re draining time, money and an already fragile healthcare system,” the report explains.
Drug shortages can be expensive, while higher drug prices add additional pressure to already small profit margins for providers. Purchasing pharmaceuticals on the secondary market may offer a short-term solution for accessing medications, but they come with a high price tag.
“Compared to their normal purchasing practices before a drug shortage, facilities that bought medications from secondary distributors reported an average price increase of about 214%,” according to the report.