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Planet Money

Why do hospitals keep running out of generic drugs?

Oct 25, 2024
Marta Voschinska, a healthcare economist and senior fellow at the Brookings Institution, dives into the perplexing world of generic drug shortages plaguing hospitals. She explains how these essential, low-cost medications frequently go out of stock and uncovers the complexities behind their manufacturing and pricing. Voschinska discusses the paradox of cheap drugs leading to market exits, and advocates for prioritizing manufacturer reliability over cost, emphasizing the need for systemic changes to ensure better patient care.
26:27

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Quick takeaways

  • The persistent shortages of generic drugs in hospitals are primarily driven by the unprofitability of manufacturing these essential medications.
  • Implementing financial incentives for hospitals to procure from reliable manufacturers may enhance the resilience of the healthcare supply chain.

Deep dives

The Impact of Drug Shortages on Healthcare

A significant and ongoing issue in healthcare involves the persistent shortages of affordable and commonly used drugs, particularly generic sterile injectables. These shortages affect not only hospital operations but also patient care, as they can lead to critical medications being unavailable during emergencies. For instance, nurses often resort to creative workarounds, such as using solid sugar alternatives when intravenous dextrose is unavailable, which may not provide the ideal medical response but are sometimes necessary. The reliance on these makeshift solutions highlights the critical nature of the problem, as the regularity of shortages creates a stressful environment for healthcare providers who must swiftly adapt to unpredictable circumstances.

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