Issue link: https://beckershealthcare.uberflip.com/i/1084691
16 CFO / FINANCE Hospital-owned drug company to offer 20 generics in 2019 By Alia Paavola C ivica Rx, the nonprofit generic drug company formed by a group of hospital systems, expects to pro- vide about 20 products this year to allevi- ate shortages, according to Reuters. e company initially expected to offer 14 drugs in 2019, but it said partnerships with companies that have licenses to manufac- ture other generic medications will likely enable it to exceed that number. Within three to five years, the company expects to offer up to 100 generic medica- tions deemed critical to the everyday oper- ations of its member hospitals. Civica Rx did not identify its manufactur- ing partners but said it is negotiating long- term prices with them in exchange for commitments from its member hospitals to buy the products for five to 10 years. "We want to be very competitive," Civica Rx CEO Martin Van Trieste told Reuters. "We want multiple manufacturers to make the products. We want our health systems to buy only half from us." Civica Rx members will pay fees based on their size and the cost of the drugs they buy. e formation of Civica Rx was made pub- lic last January, when Salt Lake City-based Intermountain Healthcare announced its intent to partner with other major health systems to address drug shortages and combat high medication prices. Since the formation, Intermountain has raised more than $160 million from its members, which include Rochester, Minn.- based Mayo Clinic, Nashville, Tenn.-based HCA Healthcare and Renton, Wash.-based Providence St. Joseph Health, among oth- ers. Combined, the systems represent more than 800 hospitals. n Maine hospital files for bankruptcy By Ayla Ellison P enobscot Valley Hospital, a 25-bed critical access hospital in Lincoln, Maine, filed for Chapter 11 bankruptcy Jan. 29. The bankruptcy process will enable the hospital to restructure its debt. "We have made tremendous strides over the last three years in bringing our operational costs in line with revenue," Hospital CEO Crystal Landry said in a press release. "Legacy debt is the issue here, and Chapter 11 allows us to re- structure that debt so we can keep our doors open and ensure that our com- munity continues to have a hospital close to home." The hospital will remain open during the bankruptcy process and no layoffs are planned. "Patient health remains our top priority and we will continue to provide excellent healthcare to our community during the bankruptcy process," Ms. Landry said. n Most consumers would prepay for prescriptions for a discount, survey finds By Kelly Gooch S ixty-four percent of consumers reported that they would jump on an op- portunity to prepay for medications to receive a discounted price, accord- ing to a survey from DrFirst, a provider of e-prescribing and patient medi- cation management solutions. The online survey, released Jan. 23, also showed that more than 75 percent of respondents tried to obtain coupons or drug discounts for a new medication, either online or through a pharmacist. The survey involved 200 consumers who had filled at least one prescription in the six months prior to the survey. n Tennessee hospital to close, lay off 146 By Ayla Ellison C umberland River Hospital in Celina, Tenn., will close March 1. Financial troubles are forcing the hospital to shut down. It has experienced signif- icant losses in recent years due to declining reimbursements and lower patient volumes. "It is with deep regret that we have to make this announcement," said Cum- berland River Hospital CEO Paul Korth in a press release. "We have worked diligently to avoid closing Cumberland River Hospital but have been unable to successfully arrange any other option." The hospital's 146 employees will be laid off when the facility closes, according to a Worker Adjustment and Retraining Notification Act notice filed Jan. 25. The hos- pital said employees will receive a letter outlining severance pay and benefits. n