http://news.yahoo.com/ap-impact-hospital-drug-shortages-deadly-costly-1
TRENTON, N.J. (AP) — A severe  shortage of drugs for chemotherapy, infections and other serious  ailments is endangering patients and forcing hospitals to buy  life-saving medications from secondary suppliers at huge markups because  they can't get them any other way.
An  Associated Press review of industry reports and interviews with nearly  two dozen experts found at least 15 deaths in the past 15 months blamed  on the shortages, either because the right drug wasn't available or  because of dosing errors or other problems in administering or preparing  alternative medications.
The  shortages, mainly involving widely-used generic injected drugs that  ordinarily are cheap, have been delaying surgeries and cancer  treatments, leaving patients in unnecessary pain and forcing hospitals  to give less effective treatments. That's resulted in complications and  longer hospital stays.
Just over  half of the 549 U.S. hospitals responding to a survey this summer by  the Institute for Safe Medication Practices, a patient safety group,  said they had purchased one or more prescription drugs from so-called  "gray market vendors"— companies other than their normal wholesalers.  Most also said they've had to do so more often of late, and 7 percent  reported side effects or other problems.
Hospital  pharmacists "are really looking at this as a crisis. They are  scrambling to find drugs," said Joseph Hill of the American Society of  Health-System Pharmacists.
A  hearing on the issue was set for Friday before the health subcommittee  of the House Energy and Commerce Committee. The Food and Drug  Administration is holding a meeting Monday with medical and consumer  groups, researchers and industry representatives to discuss the  shortages and strategies to fight them.
The  FDA says the primary cause of the shortages is production shutdowns  because of manufacturing problems, such as contamination and metal  particles that get into medicine.
Other reasons:
—  Companies abandoning the injected generic drug market because the  profit margins are slim. Producing these sterile medicines is far more  complicated and expensive than stamping out pills, and it can take about  three weeks to produce a batch. Making things worse, companies don't  have to notify customers or the FDA that they've stopped making a  medicine. That means neither FDA nor competitors can fill the gap in  time.
— Only a half-dozen  companies make the vast majority of injected generics. Even if other  companies wanted to begin making a generic drug in short supply, they're  discouraged by the lengthy, expensive process of setting up new  manufacturing lines and getting FDA approval.
— Theft of prescription drugs from warehouses or during shipment.
—  Secondary, "gray market" vendors who buy scarce drugs from small  regional wholesalers, pharmacies or other sources and then market them  to hospitals, often at many times the normal price. These sellers may  not be licensed, authorized distributors.
Hospitals that buy scarce medicines from the "gray market" are taking a gamble.
The  drugs may be stolen and hospitals can't always tell whether a medicine  was properly refrigerated — as required for many injectable drugs — or  whether it's past the expiration date, said Michael R. Cohen, a  pharmacist and president of the institute. Either way, the active  ingredient might have degraded and the drug might not work well or could  harm the patient, he said.
Cohen  attributes at least 15 recent deaths to drug shortages based on reports  by medical personnel, but says many deaths and injuries go unreported.
In  the worst known case, Alabama's public health department this spring  reported nine deaths and 10 patients harmed due to bacterial  contamination of a hand-mixed batch of liquid nutrition given via  feeding tubes because the sterile pre-mixed liquid wasn't available.
So  far this year, 210 drugs have been added to the list of drugs in short  supply, one less than the total for all of last year, according to the  University of Utah Drug Information Service, which tracks the shortages.  That's triple the roughly 70 a year from 2003 to 2006, when shortages  began to climb steadily.
"The  shortages aren't resolving. They're piling up on top of existing ones,"  said Erin Fox, a pharmacist who manages the service. She said at least  55 drugs from shortages before this year are still unavailable or  scarce.
The average price markup  on drugs sold by secondary distributors was 650 percent, according to  an Aug. 16 report by the Premier Healthcare Alliance, a group that helps  U.S. hospitals and other health providers improve their patient care  and finances. The report is based on an analysis of 636 unsolicited  sales offers that were faxed and emailed to hospitals from secondary  distributors in April and May.
Virtually  every offer was for at least double the normal price, the survey found.  The drugs with the highest markups were for critically ill patients  needing anesthesia or other medicines for surgery or for emergency care,  cancer, infectious diseases and pain management.
In  an extreme case, one vendor was offering a generic drug for dangerously  high blood pressure, normally priced at $25.90 per dose, for $1,200.
So  far, hospitals have been absorbing the extra costs, but they'll soon  have to start passing them on to insurers and patients, according to the  American Hospital Association.
Hospitals sometimes have to cave in to save patients, according to Cohen and several hospital pharmacy directors.
The FDA says it must uphold quality standards but also works hard to prevent shortages.
"When  FDA detects a contaminant, whether it be shards of glass or metal  particles or an infectious agent, we have to take action to protect the  public," said Dr. Peter Lurie, a senior adviser in the FDA  commissioner's office.
When such  problems force a company to shut down production, the FDA urges other  manufacturers to boost their output and expedites any approvals needed,  said Valerie Jensen, associate director of FDA's drug shortage program.  When raw materials used to make drugs are in short supply, the FDA tries  to find new sources.
The agency averted 38 shortages last year, Jensen added.
Legislation  pending in the House and Senate would increase penalties for drug  thefts from warehouses and tractor-trailers. Another proposal, which has  bipartisan support, would require drug manufacturers anticipating a  shortage to immediately notify the FDA.
Sen.  Amy Klobuchar, D.-Minn., the primary sponsor of the Senate version of  the notification bill, said other solutions being considered include  better tracking of medicine shipments, mandatory accreditation of  distributors, stockpiling of key drugs and allowing routine imports of  prescription drugs from countries such as Canada.
Distributors  that supply about 90 percent of prescription drugs to hospitals buy  direct from drug manufacturers and deliver only to customers with  appropriate licenses, said John Parker, a spokesman for the Healthcare  Distribution Management Association. He said HDMA members don't  participate in the "gray market" but would not comment further.
The  pitches hospitals get from the secondary distributors generally say  they have small batches of specific drugs that are hard or impossible to  find. "Are you enjoying this crazy 'roller coaster ride' of  pharmaceutical shortages? ... I utilize over 60 vendors to locate and  procure needed pharmaceuticals to assist when you have shortage needs,"  one reads.
Several distributors  who sent hospitals solicitations for scarce drugs didn't return calls  from the AP. One representative said he wasn't authorized to discuss the  issue.
One company, Novis  Pharmaceuticals, defended the higher prices, saying secondary  distributors have to charge far more because they don't get the big  rebates manufacturers give primary distributors. They also have high  costs to locate and transport batches of scarce drugs, although the  company, which mainly distributes blood plasma, would not disclose its  profit margin.
It's illegal for  companies to create a monopoly or collude to create a medicine shortage  and raise prices, but there's no evidence of that. There's no federal  law against price-gouging on prescription drugs, according to the FDA,  but it does urge pharmacists to report cases to its Office of Criminal  Investigation. An agency spokeswoman said she could not discuss whether  any cases are being investigated.
The  top three wholesalers say they try to alleviate problems by working  with drug manufacturers, updating hospitals on shortages and rationing  scarce supplies by giving their regular hospital customers a portion of  their normal order. McKesson Corp. and Cardinal Health Inc. say they  halt sales to any smaller distributors found to be diverting drugs or  otherwise breaking rules. AmerisourceBergen Corp. does background checks  on customers.
The hospital  association and other groups urge hospitals not to buy from unaccredited  vendors, to insist on documentation of the drug's source if they must,  and to report price gouging to state authorities. But only three states —  Kentucky, Maine and Texas — have price-gouging laws that specifically  cover medicines.
"Something has  to be done here," said pharmacist Michael O'Neal, head of drug  procurement for Vanderbilt University Medical Center in Nashville, which  has had to purchase medicines from secondary suppliers about 70 times  over the past two years.
"This is unethical," he said. "We're talking about people's lives."
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