Study: Primary healthcare distributors save healthcare system billions

February 7, 2008

Drug distributors save healthcare system nearly $34 billion a year

With daily delivery and high service levels to customers, primary healthcare distributors save the healthcare system nearly $34 billion per year in the distribution of branded, generic, and biologic medicines. This finding comes from a new study, "The Role of Distributors in the U.S. Healthcare Industry." The study, conducted by Healthcare Distribution Management Association's (HDMA) Center for Healthcare Supply Chain Researchalso revealed the following: distributors aggregate orders and deliver more than 13 million medicines and healthcare products to 144,000 pharmacy settings. About 80% of Rx medicines are received, managed, and delivered by HDMA primary healthcare distributor members; distributors provide significant value, at a net profit margin of just 1.1%; distributors capture just 3% of the total cost of Rx medicines; and future opportunities, such as growth in the number of generic and biologic medicines, will create opportunities for healthcare distributors to add more value to the healthcare system.

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