Seven health systems representing roughly 500 hospitals announced the launch of Civica Rx, a nonprofit generic drug company aimed at providing a stable, consistent source of generic drugs for hospitals and providers at an affordable cost. With the goal of becoming an FDA-approved manufacturer of generic drugs, the nonprofit will either directly manufacture prescriptions or sub-contract the manufacturing process.
The health systems involved recognize that drug shortages and increased costs present an ongoing problem for healthcare providers and consumers:
Civica Rx plans to launch its first products in early 2019, with support from several large philanthropic organizations as well as the Department of Veterans Affairs (VA), which signed on to provide consulting services to the company. Thus far, about one-third of the country’s hospitals expressed an interest in participating in Civic Rx.
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