High prices cause shortages that wreck hospital care – that turns disease
Krishnamurthy 05/22
(Bharath Krishnamurthy, Master in Public Health at UVA and director, Health& Analytics at American Hospital Association, 05/22/2024, “Drug Prices and Shortages Jeopardize Patient Access to Quality Hospital Care,” American Hospital Association, ., DA: 06/29/2024) jj-wh
The high prices for drugs and shortages of many critical drugs like chemotherapy and IV saline bags also impact hospitals’ ability to provide a range of services to their communities, contributing to wider problems with access to care. Hospitals are major purchasers of drugs for use in patient care, and acquiring costly medicines and securing alternative therapies during a shortage are consuming a larger share of hospitals’ finite resources. As drug prices continue to rise, hospitals have fewer resources available to finance other parts of their operations, such as paying staff and purchasing other supplies needed for patient care.
In a recent AHA report, we highlighted the range of cost-related challenges that hospitals and health systems continue to face that have created sustained headwinds for the field. These cost-related challenges include labor, medical supplies and administrative costs related to dealing with private insurance denials and prior authorizations. But of particular concern is the alarming and worsening three-part trend of rising prices for existing drugs, new drugs being introduced at record-high prices and shortages for many critical drugs.
A new infographic highlights these recent trends and the extent of the challenges that hospitals and health systems face related to their drug costs.