drug shortages
is our end goal
THE ROOT CAUSE
Shortages of generic sterile injectable drugs
The low cost of generics reduces U.S. manufacturers’ incentive or ability to invest in quality or newer manufacturing facilities. This pushes production offshore to low-wage markets, where quality problems persist and the FDA presence is less consistent.1 Other issues include:
- Manufacturer quality issues that cause companies to exit the market
- Discontinuation of older drugs in favor of newer, more profitable drugs
- Insufficient qualities of raw materials and limited availability of components
- Limited number of production lines that specialize in these drugs
Resulting shortages cut across therapeutic categories of generic drugs. Sterile injectable drugs are especially impacted due to the complexity of manufacturing and the low profit margins associated with these products.
DRUG SHORTAGES
COST HOSPITALS
$900M
in annual labor expenses2
Many hospitals and healthcare systems must maintain permanent drug shortage response teams that seek alternatives to unavailable drugs. Pharmacists, technicians and nurses spend valuable time on:
- Researching alternatives that are safe and effective
- Moving supplies from one department or facility to another
- Communicating changes to care teams
- Updating health records to reflect change orders
And that is in addition to hands-on active engagement with their patients.
DRUG SHORTAGES
IMPACT PATIENTS
32%
of planned medical procedures
disrupted by shortages2
SYSTEMIC CHANGE
Civica mitigates and prevents drug shortages
Targeting a six-month inventory buffer of essential medications
Performing intensive quality audits and ongoing reviews of suppliers to reduce the risk of a supply failure
Hospitals of any size can benefit from becoming a member of Civica.
- For example, see FDA “Drug Shortages: Root Causes and Potential Solutions,” 2019; Brookings “Federal Policies to Address Persistent Generic Drug Shortages,” 2023; Duke Margolis, “Advancing Federal Coordination to Address Drug Shortages,” 2023.
- “New Vizient Survey Finds Drug Shortages Cost Hospitals Nearly $900M Annually in Labor Expenses.” Vizient Press Release. 17 June 2025.
- “Drug Shortages Affect 88% of Primary Care Physicians.” AMA Association. 4 February 2026.
