The Biden administration is taking a look at how group purchasing organizations (GPOs) and drug wholesalers are playing a role in generic drug shortages.
In a Request for Information jointly issued Wednesday, the Federal Trade Commission (FTC) and the Department of Health and Human Services (HHS) said they want to learn more about the organizations’ market concentration, contracting practices and regulatory exemptions.
The government said it is looking for any evidence that competing drug suppliers are being disincentivized from competing in generic markets; how a lack of competition between GPOs and drug wholesalers is impacting patients, pharmacies and providers, in particular those that are smaller or rural; or other potential causes for “chronic” generic drug shortages.
“When you’re prescribed an important medication by your doctor and you learn the drug is out of stock, your heart sinks,” HHS Secretary Xavier Becerra said in a release. “This devastating reality is the case for too many Americans who need generic drugs for ADHD, cancer and other conditions. Today’s announcement is part of the Biden-Harris Administration’s work to tackle healthcare monopolies and lessen the impact on vulnerable patients who bear the brunt of this lack of competition.”
GPOs and drug wholesalers both serve as intermediaries between providers and suppliers. GPOs negotiate deals between the parties while drug wholesalers purchase the products directly from manufacturers for delivery to providers.
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