Monday, November 14, 2011

Greed and Drugs

According to a recent survey by the American Hospital Association, 99.5 percent of nation hospitals have experienced one or more drug shortages in the last six months. We’re going through a huge drug shortage problem, and everything is in short supply and high demand.

Greed is now starting to creep its way into hospitals. Gray market suppliers, who get their products mysteriously, are marking up drugs by 650 percent, according to a survey done by Premier.

The report by Premier states this: "The gray market, also known as a parallel market, is a supply channel that is unofficial, unauthorized or unintended by the original manufacturer. In markets where the products are scarce or in short supply, gray markets may evolve to sell the item at any price the market will bear. In other circumstances, when commodities are already being sold at high margins, a gray market may develop to compete with the innovator's product, but at a lower price.”

Premier is urging hospitals nationwide to not buy any products from the gray market vendors.
Snyder and Wenner, P.C.

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