Article

Drug Shortages: A Secret Cost of Supply Chain Disruptions

December 15, 2025
Pharmacist stocking meds on shelf
According to the report “Beyond the shortage: The hidden cost of drug supply chain disruptions,” from Provista contracting partner Vizient, “Drug shortages continue to disrupt healthcare nationwide.”  
 
These shortages, in turn, impact staffing because employees spend more time managing the issue. Labor costs related to managing drug shortages saw a significant increase between 2019 and 2024, rising from $359 million to $894 million, according to the Vizient report.
 
“Staffing burdens have surged, demanding more time and resources, especially in pediatric facilities, to simply navigate drug shortages daily,” the June 2025 report notes.

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.

RISKS ARE AMPLIFIED FOR NON-ACUTE PROVIDERS

While hospitals often have the leverage, scale and stockpiles to help offset some of the challenges caused by shortages, non-acute providers face increased risk. With fewer backup suppliers and smaller drug inventories, ambulatory care facilities are more vulnerable when disruptions occur. They also have less negotiating power than large health systems to secure access from manufacturers and distributors.
 
The effects extend beyond budgets. For example, drug shortages have a direct impact on patient access to medications, treatment schedules and quality of care. Plus, non-acute teams spend more hours manually sourcing drugs, managing substitutions and explaining changes to patients.
 
As the report emphasizes, “Managing shortages has become an ongoing and labor-intensive process that further stretches already limited resources and tight margins.”
 
BEST PRACTICES FOR MITIGATING DRUG SHORTAGES
While drug shortages are complex, non-acute leaders can take practical steps to mitigate the risks. Best practices include:

  • Collaborative sourcing strategies. By leveraging the collective buying power of group purchasing organizations (GPOs), non-acute facilities can gain the scale and pricing typically reserved for large health systems. This sourcing approach enhances stability and lowers the risk of shortages.
  • Proactive contracting. Securing supply contracts in advance of when they’re needed can help lock in drug availability and pricing, providing more predictability in uncertain markets.
  • Supplier diversification. Relying on a single supplier increases risk. Expanding relationships across multiple suppliers reduces dependency and provides greater resilience when disruptions occur.
  • Operational readiness. Facilities should establish clear protocols for drug substitutions, including communication strategies for clinicians and patients. Being prepared helps minimize confusion and ensures continuity of care when shortages arise.

Each of these strategies strengthens resilience when disruptions occur. They also help position non-acute providers to ensure consistent patient access to medications, even when markets are volatile.

“Drug shortages aren’t just about supply—they’re draining time, money and an already fragile healthcare system. —Vizient report, Beyond the shortage: The hidden cost of drug supply chain disruptions”

PLANNING AHEAD BY BUILDING RESILIENCE

Drug shortages are unlikely to disappear in the near future. In fact, they remain a systemic challenge that requires long-term planning and investment.
 
To offset the impact, non-acute healthcare leaders must align drug sourcing with broader strategic priorities. This includes using data analytics to predict any upcoming shortages, anticipate price changes and proactively manage supply contracts. Analytics can identify early warning signs of a potential shortage, whether related to pharmaceutical manufacturing issues, raw material issues or distribution slowdowns, to give providers more time to act.
 
Equally important are partnerships across the supply chain. Building strong relationships with manufacturers, suppliers and especially with a trusted GPO helps protect against drug volatility. These partnerships support consistent patient care while easing the facility’s administrative burden of managing shortages on their own.
 
Provista, through the Novaplus® Enhanced Supply and Novaplus® Enhanced Supply Reserve programs in partnership with Vizient, offers additional layers of protection. These programs expand access to critical drugs while also establishing drug reserves that can be deployed when disruptions occur. For non-acute facilities, this means greater confidence in supply availability and fewer surprises at the point of care.

SOURCING STRATEGIES GO BEYOND DRUG ACCESS

Drug shortages are more than a supply chain inconvenience. They represent a costly, systemic challenge that drains staff resources, drives up costs and impacts patient care. For non-acute providers, the risks are even greater due to smaller inventories, leaner operations and less negotiating leverage than large hospitals and health systems.
 
By adopting best practices, such as collaborative sourcing strategies, proactive contracting, supplier diversification and operational readiness, non-acute organizations can better mitigate these disruptions. In addition, by building long-term resilience with the support of analytics, partnerships and GPO programs like Novaplus, facilities can have the ability to deliver high-quality care, even in the face of ongoing shortages.
 
Ultimately, the best sourcing strategy is not just about buying drugs. It’s about safeguarding patient access, protecting profit margins and ensuring that facilities remain resilient when drug access is a challenge.

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