@Risk

Health care executives now face a variety of unprecedented demands, many of which center on their relatively new networks of extensive global supply chains.

In fact, the combination of extended supply chains due to globalization and the introduction of more specialized products into the marketplace has many health care executives particularly concerned about regulatory compliance, product integrity and security, according to new results from the fourth annual Pain in the (Supply) Chain survey from UPS.

More specifically, the survey, which  questioned senior-level healthcare supply chain executives at pharmaceutical, biotech and medical device companies in the US, Europe and Asia, found that:
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Prescription drug shortages are increasing healthcare costs and putting patients at risk, according to a new study released last week by Premier healthcare.

The majority of drugs that are in short supply are needed for sedation, emergency care and chemotherapy, and the Premier healthcare alliance analysis concluded that the shortage cost US hospitals at least $200 million annually through the purchase of more expensive generic or therapeutic substitutes. The total economic impact is likely much higher, since the research excluded drugs purchased on the “gray market” or those with therapeutic alternatives. It also did not include indirect costs, such as added labor needed to manage shortages and secure alternative supplies.

Premier surveyed experts from 228 hospitals and found that over a six-month period in 2010 (July-December): (more…)

It seems that the fate of health care reform now rests squarely on the shoulders of the newly convened 112th Congress.

And, as you would expect, businesses are watching carefully.

Interestingly, however, recent research by Ernst & Young LLP found that even though most US employers (84 percent) see managing the changes resulting from health care reform as a very important or critical business issue, many (more than 40 percent) report that they have not undertaken what they consider to be a full analysis of the financial impact of the law passed last year.

The Ernst & Young report, entitled “Moving forward: companies speak out on health care reform,” analyzes the issues of greatest concern to executives and their perceived level of readiness to comply with the Patient Protection and Affordable Care Act (PPACA). The findings, based on a survey of 381 executives, representing 347 companies, revealed that: (more…)

Supply chain security is now a top concern for companies throughout the pharmaceutical industry. Several recent high profile cases have underscored vulnerabilities, and most pharma organizations now recognize that a holistic approach is required to detect and prevent adulteration, counterfeiting, illegal diversion, and theft.

Last month, ISPE, a global not-for-profit association of 22,000 pharmaceutical science and manufacturing professionals, released a white paper to help firms address these critical supply chain issues. “Supply Chain Security: A Comprehensive and Practical Approach” encourages pharmaceutical companies to strengthen their overall supply chain security by adopting a layered approach that includes:

• Signal detection and response

• Supplier quality management

• Management of logistics and transportation services providers

• Additional specific programs

I found the discussion of signal detection and response particularly interesting, as it illustrates how adulteration of one particular excipient can have broad effects on the quality of finished products across several countries and can impact several organizations. Here’s an example from the report: (more…)

Most large US employers are moving forward with plans to make changes to their 2011 health care benefit programs in the wake of both health reform and expected large health benefit cost increases next year, according to a new survey by the National Business Group on Health.

The survey–which collected responses from 72 of the nation’s largest corporations representing more than 3.7 million employees –was conducted in May and June, 2010. The results show that: (more…)