How Civica Rx Will Impact Drug Shortages
Civica Rx, the new not-for-profit generic drug company formed by a consortium of health systems, could help alleviate shortages of certain critical drugs in hospitals.
The company will initially manufacture 14 hospital-administered generic drugs that have suffered from supply shortages, and then will expand production to other medications. The organization is not naming the drugs it will manufacture for competitive reasons, according to a statement.
Civica Rx says it expects to save the U.S. healthcare system hundreds of millions of dollars annually. “Research into the actual costs of manufacturing and distributing generic drugs suggests that, in many instances, prices for generic drugs used in hospitals can be reduced to a fraction of their current costs,” the organization says.
The seven initial governing members of Civica Rx—which represent about 500 U.S. hospitals—are: Catholic Health Initiatives, HCA Healthcare, Intermountain Healthcare, Mayo Clinic, Providence St. Joseph Health, SSM Health, and Trinity Health. More than 120 other health organizations could also become involved.
“The fact that a third of the country’s hospitals have either expressed interest or committed to participate with Civica Rx shows a great need for this initiative. This will improve the situation for patients by bringing much needed competition to the generic drug market,” says Martin VanTrieste, Civica Rx’s CEO and former chief quality officer for Amgen, in a statement.
VanTrieste agreed to lead the new organization without compensation.
Civica Rx will be an FDA-approved manufacturer that will manufacture some drugs itself and will subcontract manufacturing for others. It says it expects to have some medications available as early as next year.
Highest-Rated Retail and Mail Order Pharmacies
Consumers rank Sam’s Club, Good Neighbor Pharmacy, Wegmans, and Humana Pharmacy best within their individual categories in terms of customer satisfaction, according to a new survey.
In the J.D. Power 2018 U.S. Pharmacy Study, Good Neighbor Pharmacy ranks highest overall among chain drug stores, followed by Health Mart and Rite Aid Pharmacy.
Sam’s Club ranks highest overall among mass merchandiser pharmacies, followed by Costco and the CVS/pharmacies inside Target stores.
Among supermarket pharmacies, Wegmans has the highest ranking, followed by H-E-B and Publix.
Among mail order pharmacies, Humana Pharmacy ranks highest overall in mail order, with Kaiser Permanente Pharmacy as second and Express Scripts as third.
“The retail pharmacy business has been in the spotlight ever since Amazon announced in June 2018 that it’s getting into the space,” says Greg Truex, senior director and healthcare practice leader at J.D. Power, in a statement. “Amazon, or any other organization looking to disrupt the $100 billion U.S. mail order pharmacy market, will have their work cut out for them. Legacy pharmacy players have invested heavily in delivering superior service, while brick-and-mortar pharmacies are starting to reap significant customer satisfaction gains from retail-style clinics offering health and wellness services.”
Among community pharmacies, health and wellness services are most important to customers, according to J.D. Powers. “Such services are currently present in 86% of chain drug stores, 83% of supermarket pharmacies, and 75% of mass merchandiser pharmacies,” the research firm said.
For mail order pharmacies, delivering prescriptions on time is associated with a significant increase in overall customer satisfaction, according to the survey. Consumers also place high value on receiving prescriptions within five days of completing an order.