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U.S. Drug Shortages Hit Decade High with 323 Active Cases, ASHP Reports

8 months ago3 min read
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Key Insights

  • The American Society of Health-System Pharmacists (ASHP) reported 323 active drug shortages in April 2024, marking the highest number in nearly a decade and almost double the 2016-2017 levels.

  • Critical medications affected include antimicrobials, chemotherapy drugs, CNS agents, and hormonal therapies, with generic injectables being particularly vulnerable due to manufacturing and market challenges.

  • New legislation, the Drug Shortage Prevention and Mitigation Act, proposes Medicare incentives for hospitals to maintain medication stockpiles and encourages manufacturers to sustain better production practices.

The United States is facing its most severe drug shortage crisis in nearly a decade, with the American Society of Health-System Pharmacists (ASHP) reporting 323 active drug shortages as of April 2024. This marks a significant increase from the 176 active shortages recorded in 2016-2017, with numbers consistently exceeding 300 for the past 18 months.

Critical Medications Affected

The shortages span a wide range of essential medications, including:
  • Antimicrobials
  • Chemotherapy drugs
  • Central nervous system agents
  • Electrolytes and fluids
  • Hormonal therapies
Generic injectable medications have been particularly impacted, primarily due to high market demand, decreased supply, and manufacturing delays. These shortages can significantly compromise patient care, increasing the risk of medication errors and adverse effects from alternative treatments.

Manufacturing and Market Dynamics

Several factors contribute to the ongoing crisis. Generic, injectable, and older medications are especially vulnerable to supply disruptions. The current market structure presents significant challenges:
  • Wholesalers and group purchasing organizations' bulk buying practices limit manufacturers' pricing flexibility
  • Equal reimbursement rates for all generic versions of a drug lead buyers to choose the least expensive options
  • Companies often find production of cheaper medications unprofitable at higher volumes
  • Manufacturing quality control requirements can further constrain production capacity
"Drug shortages can harm patients not only due to lack of proper medication, but also by increasing potential errors and adverse effects from substitution and lack of care," notes industry experts monitoring the situation.

Proposed Solutions and Legislative Action

In response to the crisis, a draft of the Drug Shortage Prevention and Mitigation Act was presented to Congress in June 2024. The proposed legislation includes several key provisions:
  • Medicare-based incentives for hospitals to maintain adequate medication stockpiles
  • Manufacturer incentives to sustain production while maintaining good manufacturing practices
  • Special focus on generic injectable medications, particularly those not self-administered
  • Implementation timeline beginning in 2027 for high-risk medications
Researchers, including Hernandez et al., have proposed a value-based reimbursement system to motivate manufacturers and purchasers to stabilize their supply chains. This approach aims to make generic medication production more financially viable by widening potential sales margins.

Monitoring and Management Strategies

The FDA maintains a daily-updated database of verified shortage reports, providing critical information about new, updated, and resolved shortages. Healthcare providers can access:
  • Current shortage status
  • Verified reports of new shortages
  • Updates on existing shortages
  • Information about discontinued medications
The FDA has also implemented measures to extend beyond-use dating for certain medications affected by shortages, provided safety and stability can be verified through testing.
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