To combat chronic shortages and high drug prices, a group of nonprofit health systems have decided to come together to start their own nonprofit generic drug company.
Utah-based Intermountain Healthcare is leading the collaboration that includes two St. Louis area health systems, Ascension and SSM Health, in addition to Michigan-based Trinity Health and the Department of Veterans Affairs.
The company will either become an FDA-approved manufacturer or subcontract the work out.
The new company will provide an alternative to products currently made by generic manufacturers “whose capricious and unfair pricing practices are damaging the generic drug market and hurting consumers,” according to a joint statement released Thursday morning.
“All Americans deserve access to high-quality, affordable care,” Laura Kaiser, CEO of SSM Health, said in the statement.