The Federal Trade Commission (FTC) and the U.S. Department of Health and Human Services (HHS) have initiated a joint Request for Information (RFI) to gather insights on the impact of group purchasing organizations (GPOs) and drug wholesalers on generic drug shortages. The agencies have set a 60-day period for comments.
According to a joint press release, the FTC and HHS are seeking feedback on the market concentration of large healthcare GPOs and drug wholesalers—entities that act as intermediaries in the pharmaceutical industry. They are also interested in understanding their contracting practices.
The press release further details that the RFI is soliciting comments on several specific aspects: the influence of protections for GPOs under the Federal Anti-Kickback Statute on market concentration, GPO contracting practices, and drug shortages; the impact of market concentration among GPOs and drug wholesalers on smaller healthcare providers and rural hospitals; how GPO and drug wholesaler concentration may have hindered suppliers from competing in generic drug markets; and the effect of the most common GPO compensation model.
HHS Secretary Xavier Becerra commented that this RFI is another step taken by his agency to address the issue of generic drug shortage. "When you're prescribed an important medication by your doctor and you learn the drug is out of stock, your heart sinks. This devastating reality is the case for too many Americans who need generic drugs for ADHD, cancer, and other conditions," Becerra said.
FTC Chair Lina M. Khan echoed these sentiments in her statement. "For years Americans have faced acute shortages of critical drugs, from chemotherapy to antibiotics, endangering patients," Khan said. "Our inquiry requests information on the factors driving these shortages and scrutinizes the practices of opaque drug middlemen."
