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  • Washington Highlights

    FTC, HHS Seek Input on Factors Contributing to Drug Shortages


    Shahid Zaman, Director, Hospital Payment Policy
    For Media Inquiries

    In a Feb. 14 request for information (RFI), the Federal Trade Commission (FTC) and the Department of Health and Human Services (HHS) are seeking feedback from invested parties on the root causes of and potential solutions to generic drug shortages. The RFI focuses on the role of large group purchasing organizations (GPOs) and drug wholesalers in potentially causing drug shortages. 

    Specifically, the agencies ask about how market concentration among GPOs and wholesalers impacts health care providers and discourages suppliers from competing in generic markets. The RFI also seeks comments on wholesaler and GPO contracting practices, compensation models, and fees. Finally, the agencies request examples of approaches that have been used to minimize the adverse effects of actual drug shortages or to avoid potential shortages, as well as examples of policies and programs that may help keep drug costs low. 

    Comments on the RFI are due April 15.