Under Pressure: Pay to Play Increasing Drug Costs for Hospitals and Consumers

Pressure is building regarding the "Pay to Play" payments that are made to pharmacy management middlemen.  These middlemen include Pharmacy Benefit Managers that receive rebates from drug manufacturers for preferred formulary placement and the exclusion of coverage of competing manufactures.  

In this article, Dr. Martin Makary, M.D., MPH, of John Hopkins University School of Medicine brings light to the impact of "pay to play" fees that are made to Group Purchasing Organizations (GPO) that act as middlemen between hospitals and drug manufacturers.  These GPOs behave like the PBMs in the health plan/payer space.  They demand fees to gain access and to have sole-supplier status with the GPO.  Dr. Makary makes a strong case that these relationships result in reduced supply, competition, and higher prices for hospitals and consumers.

It's time for regulators to revisit the safe harbor status for PBMs and GPOs and bring transparency and greater competition to drug prices.  To learn more about how Pulse8 can help you gain the transparency and clarity you need to save money through your pharmacy programs, click here.

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