CBS Local — Fed up with the perceived underhanded business tactics of drugmakers and growing costs of generic medications, four hospitals are coming together to form their own not-for-profit drug company.
In a Jan. 17 announcement by Intermountain Healthcare, the hospital network is teaming up with Ascension, SSM Health, and Trinity Health to combat rising prices of life-saving drugs. In their mission statement, Intermountain says they hope to provide patients with “an affordable alternative to products from generic drug companies whose capricious and unfair pricing practices are damaging the generic drug market and hurting consumers.”
Intermountain added that the nonprofit company will also help keep the supply of drugs high for hospitals that have reportedly run into trouble acquiring the necessary amount of medications in recent years. The group of over 450 hospitals will also be consulting with the U.S. Department of Veterans Affairs as the physicians look to shake up the drug market and bring in fresh competition.
“This is a shot across the bow of the bad guys,” Dr. Marc Harrison of Intermountain Healthcare said, via The New York Times. “We are not going to lay down. We are going to go ahead and try and fix it.”
Price hikes on life-saving medications have drawn national criticism and drugmakers, like EpiPen maker Mylan, have even been called to testify before Congress to answer for their skyrocketing price tags.