Generic purchasing presents an interesting dichotomy of both challenges and opportunities for pharmacy leadership. This year saw rampant supply inconsistencies, both in terms of shortages and unit dose availability. Conversely, opportunities abound to improve system efficiencies via RFID tags and the addition of specialty pharmacy services.

To quantify the impacts of these challenges on hospital pharmacies, PP&P polled a random, nationwide sample of health system pharmacy directors in the third quarter of 2023. A total of 241 responses were received, yielding a confidence interval of 6.17 (95% +/-6.17). The pages that follow illustrate current trends in pharmacy’s utilization of generic medications including growing budgets, off-contract purchasing, white bagging reimbursement, and more.

The impact of drug shortages cannot be overstated this year. Significant resources are required to address the rapidly increasing frequency and volume of shortages. Even more concerning is the fact that many of the drugs on shortage this year, such as oncology medications, are life-saving products. Beyond hits to the budget and pressuring an already stressed workforce, these shortages are now delaying patient care and impacting patient safety. When patient safety is threatened by the inability to access generic medications, significant systemic reforms are needed.

The survey results further underscore pharmacy’s commitment to improving efficiency and controlling the bottom line. By taking advantage of the expanding availability of RFID tagged generics, pharmacy is improving OR services and billing, controlling high-cost medications, and mitigating diversion risks. Likewise, the expansion of in-house specialty pharmacy services supports improved patient care and helps manage high-cost medications.