As pharmacists know, the most costly and dangerous drug shortages are usually due to an inability to get drugs that are no longer under patent protection. The loss of patent protection leads to a decreased price and a reluctance of manufacturers to get into a market with declining profitability, which leads to shortages.
Most non-acute healthcare providers, including ambulatory surgery centers, physicians performing procedures in their offices, infusion centers and home infusion pharmacies, face shortages of essential pharmaceuticals. One proven solution to mitigate the problem is the Provista Pharmacy Program, which offers pharmaceuticals through the private label Novaplus. Novaplus provides exclusive access to the nation’s most protected inventory of shortage-prone drugs.
Unique in the industry, Novaplus features a mostly injectable portfolio, which has been increasing by about two dozen new drugs each year since 2012. Fill rates average 92%, which is significantly higher than the 79% average by other group purchasing organizations (GPOs).
For example, Novaplus offers fill rates of:
- 98% on Vancomycin HCL; 71% other GPOs.
- 98% on Heparin sodium; 63% other GPOs.
- 90% Metoclopramide HLC; 0% other GPOs.
- 90% Ketorolac tromethamine; 50% other GPOs.
- 90% Piperacillin-tazobactam; 38% other GPOs.
In addition, Novaplus offers nearly 200 drugs representing approximately 790 national drug codes (NDCs), including antibiotics, anesthesia and oncology pharmaceuticals. This makes it the largest private label and dedicated inventory in the industry.
NOVAPLUS PROVIDES ACCESS TO PRODUCTS ON THE DRUG SHORTAGE LIST
Provista’s private label program can play a strategic role in helping pharmacists manage drug shortages. The top 25% of drugs on the American Society of Health-System Pharmacists (ASHP) drug shortage list are not an issue for Novaplus members–the program has fill rates of over 90% on these drugs. In addition, 87% of NDC drugs are available through the Novaplus label.
Relationships with manufacturers help drive drug availability. For instance, leveraging committed spend for Novaplus products allows Provista to predict demand for manufacturers of generics. In return, manufacturers ensure higher fill rates.
A first-of-its-kind risk-sharing initiative with manufacturers leads to greater production commitments. This results in increased production of short- and critical-assess drugs for Provista members.
Further enhancing the program is a newly announced initiative that takes drug fulfillment to the next level and provides incentives for manufacturers to participate. It offers:
- A seven-year commitment versus three years for other agreements.
- Manufacturer extended production planning ability.
- Higher market share, backed by auto-substitution, compliance requirements and targeted marketing.
- Promotion by over 150 alliance dedicated field service teams.
- Suppliers the ability to offer unique, differentiating value to alliance members.
- Preferred stocking.
Although labels on Novaplus pharmaceuticals are different from the manufacturers’ brand name products, the drugs are identical. They are from the same manufacturers and are the same products. Oftentimes, the Novaplus-labeled product is the only drug available with the wholesale distributor or the manufacturer.