Comments on the Request for Information on drug shortages

Generic sterile injectables

Marta Wosińska and Richard Frank recently responded to a request for information from the Senate Finance Committee and the House Energy and Commerce Committee seeking input from stakeholders on persistent drug shortages. Their response addresses the economic and market conditions that lead to underinvestment in quality manufacturing operations and, with that, shortages.

The solutions Wosińska and Frank offer in their response draw on their recent policy proposal that encourages hospitals to reorient the emphasis on low prices in favor of manufacturing quality and reliability.  They propose such reorientation could be accomplished through a Centers for Medicare and Medicaid Services (CMS) pay-for-performance program that rewards hospitals for taking steps to prevent shortages before they occur.

In their response, Wosińska and Frank also provide guidance on how to structure supply chain transparency efforts so they don’t exacerbate shortages and reiterate findings from a February analysis of how the Inflation Reduction Act (IRA) intersects with drug shortages.

Read the full letter here.

  • Acknowledgements and disclosures

    The authors thank Wendell Primus for reviewing an earlier draft of the letter and acknowledge financial support from the Commonwealth Fund.