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Hospitals Are Banding Together to Make Their Own Generic Drugs

A group of hospitals have formed a nonprofit generic drugmaker to combat shortages and artificially high prices.

IV Administration / Image: AP
IV Administration / Image: AP

High prices and shortages are two issues that plague the pharmaceutical industry, but according to a recent Business Insider article, hospitals are taking matters into their own hands. A nonprofit company called Civica Rx, which launched early last year, is essentially a group of hospitals banded together to make their own generic drugs. Since than, Civica has garnered a lot of attention from other hospitals around the United States that are interested in joining the venture. On Monday, 12 more health systems joined the organization.

The new systems include Illinois and Wisconsin-based Advocate Aurora Health, Michigan’s Spectrum Health, and NYU Langone Health. Together, they bring 250 more hospitals to the group. The goal of the group is to provide relief to the 205 drugs currently facing shortages, and lower prices on generics.

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