HSCA, Avalere Health Report Details Critical Role of GPOs in Mitigating Impact of Prescription Drug Shortages

A new report from Avalere Health and the Healthcare Supply Chain Association (HSCA) called The Vital Role of Group Purchasing Organizations in Alleviating Drug Shortages in the United States found that healthcare group purchasing organizations (GPOs) play a significant role in helping hospitals, purchasing partners and suppliers alleviate the impact of prescription drug shortages in the United States.

In its report, Avalere found that GPOs are taking a variety of specific steps to help mitigate the impact of drug shortages, including:

  • Tracking data on drug shortages;
  • Strategizing with members when the potential for a supply disruption arises;
  • Communicating with manufacturers and distributors when they anticipate a supply problem;
  • Creating incentives for drug manufacturers to produce agreed-upon quantities of certain critical drugs and drugs in short supply.
Avalere also identified specific policy recommendations for a multi-stakeholder approach to combat drug shortages, including:

  • Improving approval processes at the U.S. Food and Drug Administration (FDA);
  • Refining early notification systemsand public communication;
  • Implementing market and operational efficiencies.
The drug shortage report also includes a number of case studies illustrating the strategies employed by GPOs to expand production capacity for drugs in short supply and to ensure the timely reporting of shortages. GPO strategies depicted in the case studies include:

  • Providing financial and technical support for alerting the public about drug shortages;
  • Encouraging production of critical drugs through innovative agreementsthat provide certainty to manufacturers;
  • Working to raise supplier performance quality metrics.
“Drug shortages are a complex problem with no overnight fix,” said HSCA President Curtis Rooney. “GPOs are committed to continuing to work with government, industry, hospitals, and all supply chain stakeholders to find a solution to this public health crisis.”

To read the complete Avalere/HSCA report, The Vital Role of Group Purchasing Organizations in Alleviating Drug Shortages in the United States, please click here or visit the HSCA website at

For more information about the efforts of GPOs to help mitigate the impact of drug shortages, please visit

For the full HSCA press release, click here.