Listen: Hospital groups launch own company to make generic drugs
"Several hospital groups which together represent about five hundred hospitals across the country are joining together to launch nonprofit company with the goal of making drugs. More affordable accessible civic Rx says it's just getting started as more than one hundred twenty hospital groups have expressed interest in joining for more. We're joined live on the KCBS ring central Newsline by Joseph you house, professor of health policy and management at Harvard University and director of the university's division of. Of health policy, research and education and the inter faculty initiative in health policy. Professor does this seemed like a good strategy to get everyone together on the same on the same Plainfield. Yes. Well, the problem has been that there's been only one or two manufacturers of these generic drugs and the hospitals have run into shortages. So they affect want to build additional capacity to make more of these drugs. So this works this'll be very helpful for patients. Well, let's talk about what they have in mind. So this is not over the counter stuff. These are not the drugs you and I pick up at the drug store if they'd been prescribed to his these are drugs administered at the hospital. Now, how many drugs are like that? And what is the cost to hospitals of the current system? And this is something they can ratchet downward. So. I think the hospitals are talking about generic drugs which are off patent. So these are drugs you can buy at the drugstore. You can buy them as strict soak unbranded drugs like Uber. Profane would be generic version brand name of that would be Advil. You can buy either one. But the problem is some of these drugs at the hospitals have administering they haven't been able to get because manufacturing plants have shut down because of safety problems at the plant. They couldn't set aside the food and Drug administration that they were the drugs they would produce he would be safe, and that's created shortages sits also created the potential for price abuses. If you only have one manufacturer of generic drug most generic drug sell for very very small amounts, but there are certainly instances of of price gouging. So if you're talking about generic drugs that it shouldn't be too long before we can see these prices come down and these products on the market. Well, generic drugs are actually quite low priced the high sticker prices that people worry about either case where there's a drug. Rug that's on patent, and nobody else can make it or there's only one manufacturer of generic drug. We decided to. Abuse market power that that that manufacturer head. But the FDA the food and Drug administration is giving priority to drugs that are in short supply generic manufacturer wants to enter the market before they can enter the market the food and Drug administration has to. Tour their plant and make sure it's going to be safe in terms of producing drugs. And that's yeah. The several months delay. But in the past and now if their drugs in short supply, the FDA is going to prioritize a new manufacturer coming in who wants to make"