Becker's Hospital Review

75 PRACTICE MANAGEMENT SUPPLY CHAIN Antidote for Heroin Overdose Sees Huge Price Spike By Mackenzie Bean T he price of a life-saving drug that can reverse an opioid overdose is rising dramatically, just as healthcare officials push to make the drug more available in clinics, homes and schools, according to Politico. Naloxone, which counteracts overdoses of prescribed opioids and street heroin, has been on the market since 1971. In the past two years, prices for some versions of the drug have increased up to 17-fold. Five versions of naloxone are now on the market. The price change has resulted in some emergency response departments to run out and not restore supply of the antidote, while many public health groups must rely on donations to buy the drug, Politico reported. Drug companies blame the price increases on manufacturing and packing costs, wholesalers and insurance company policies. While new generic and branded competitions have entered the market, they've had little impact on price. e naloxone shortages bring two public health crises to a head — the politically charged debate over high drug prices and the growing concern over lethal addiction. e new higher costs for a well-established drug like naloxone leaves both Democrats and Republicans angered. e White House addressed the issue, stepping in to help state and local governments combine their purchasing power to secure better discounts for the drug. However, complaints over the rising drug cost have not dropped off. The House passed a bundle of 18 bills in May to tackle the opioid epidemic and the package was then sent to conference along with a Senate package passed in March. The package focuses on access to naloxone rather than price. With no new federal money attached to the bills, it's unclear how many opioid and heroin patients the antidote will reach or when. In 2014, more than 28,000 people died from opioid and heroin overdoses, more than any year on record, according to the CDC. n The Top Supply Chain Challenges of 2016 By Tamara Rosin T he supply chain poses a number of challenges for hospitals and health systems, and is often at the focal point of efforts to eliminate waste and reduce spending. A survey from MHI and Deloitte narrows in on the top challenges facing supply chain professionals this year. The 2016 MHI annual industry report, called "Accelerating Change: How Innovation is Driving Digital 'Always-On' Supply Chains," includes survey responses from 900 supply chain industry leaders. Here are the top supply chain challenges of 2016, according to the report. 1. Customer demands for faster response times — 90 percent of respondents said this was extremely challenging, very challenging or somewhat challenging. 2. Hiring and retaining a skilled workforce — 89 percent 3. Customer demands for lower delivered costs/pricing — 89 percent 4. Increasing competitive intensity, rising customer service expectations — 89 percent 5. Increasing volatility of demand — 86 percent 6. Customer demands for more customized products and services — 82 percent 7. Increasing volatility of supply, including supply chain disruptions — 81 percent 8. Increasing number of products — 78 percent 9. Customer demands for more supply chain transparency/sustainability — 67 percent 10. Customer demands for smaller, more frequent shipments — 66 percent These Drug, Device Companies are Offering Money-Back Guarantees to Hospitals, Payers By Brooke Murphy A n increasing number of medical device and pharmaceutical companies are offering a money-back guarantee to payers and providers for products that do not work as intended, reports STAT. Many of these companies have implemented refund programs as a way to make payers and provider groups slightly more comfortable with their products' high prices, according to the article. Medical device companies that have launched refund programs include Stryker, Boston Scientific, Johnson & Johnson, Medtronic and Titan Spine. In the pharmaceutical arena, Cigna signed contracts with Amgen, Regeneron Pharmaceuticals and Sanofi for cholesterol-lowing drugs. Should real-world patient outcomes not match the results of clinical trials, the pharmaceutical companies have vowed to give Cigna a price discount on their product. Employing a real-world clinical approach to medical devices and drugs gives manufacturers the opportunity to stand behind the performance and cost of their offerings. n

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