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Kate Traynor, Hospitals lack leverage in drug cost negotiations, American Journal of Health-System Pharmacy, Volume 76, Issue 17, 1 September 2019, Pages 1264–1265, https://doi.org/10.1093/ajhp/zxz140
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As Congress seeks remedies to high medication costs, Lynn Eschenbacher, chief pharmacy officer for St. Louis, Missouri–based Ascension, revealed one strategy that doesn’t work.
“A common misperception is that systems like ours are able to leverage our size to get significant discounts on drugs,” Eschenbacher told members of the House Energy and Commerce Committee’s subcommittee on health during a May 9 hearing.
“The fact is, manufacturers are only willing to negotiate the price for about half of the drugs we buy,” she said.
Eschenbacher said Ascension provides healthcare and social support services in 21 states and the District of Columbia. She said Ascension’s negotiating power is especially limited for sole-source drugs.
Drug costs are the fastest-growing part of Ascension’s supply chain, she told the committee members.
Eschenbacher said Ascension typically faces thousands of drug price hikes each January and July and up to 40 increases weekly throughout the year, outpacing adjustments to reimbursement rates for the products.
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