U.S. Pharmaceutical Supply Chain Requires Overhaul, Says Expert Committee Convened by Business Group on Health
The U.S. pharmaceutical supply chain must be remodeled to address long-standing conflicts and achieve a delivery model marked by transparency, affordability and access, a multistakeholder working committee created by Business Group on Health recommended today to industry leaders and government regulators.
The committee, composed of employers, health plans, pharmacy benefit managers, pharmaceutical manufacturers, health systems, consultants, retailers, wholesalers and other key stakeholders, worked to develop consensus-driven, disruptive solutions for a more patient-centered and financially sustainable pharmaceutical ecosystem. It is officially known as the Pharmaceutical Supply Chain Leadership Forum.
The forum convened during the past two years to study challenges within the pharmaceutical supply chain, culminating in 70 specific reform recommendations. Many of these proposed actions address the need for increased transparency in such specific areas as therapeutic alternatives and actual out-of-pocket costs.
"To a great extent, the contractual arrangements and business practices of stakeholders along the pharmaceutical supply chain have contributed to unaffordable and unsustainable drug prices, prompting calls for market- and policy-based reforms, including possible government intervention to regulate drug prices," said Ellen Kelsay, president and CEO of Business Group on Health. "By drawing upon their deep expertise and working in consensus, forum members identified potentially disruptive, yet necessary changes."
The committee agreed upon the following key tenets to guide the development and finalization of the specific recommendations:
To learn more about the forum's call-to-action, please see the executive summary here.