Between July 1, 2025, and June 30, 2026, Vizient projects hospital pharmacy expenses to increase 3.84%. Nationally, drug prices rose 9% between 2023 and 2024, according to Kaufman Hall’s “National Hospital Flash Report,” released in early February.
As ongoing medication price increases factor into health systems’ operating losses, pharmacy leaders are implementing new ways to contain costs.
One of those strategies involves buying directly from drug manufacturers rather than wholesalers or group purchasing organizations, according to Tyson Frodin, PharmD, assistant vice president of pharmacy supply chain at Tacoma, Wash.-based MultiCare Health System.
MultiCare utilizes data analytics to spot best deals. From 2021 to 2024, the health system achieved a 24% reduction in inpatient pharmacy spend despite increases in patient volumes and pharmaceutical costs.
Sometimes, the data analytics point to opportunities for best prices through indirect agreements with GPOs and wholesalers. Other times, buying directly from drugmakers is the most cost-effective option.
Madeline Camejo, PharmD, vice president and chief pharmacy officer of Baptist Health South Florida, recently told Becker’s that her organization saved nearly $580,000 through direct manufacturer partnerships and compliance programs.
The Coral Gables, Fla.-based system “has optimized cost savings, improved contract compliance and enhanced supply chain resilience” through this streamlined purchasing effort, Dr. Camejo said.
If more hospitals and health systems bypass GPOs and wholesalers to buy directly from drug manufacturers, disruptions could be coming for the traditional hospital pharmaceutical landscape.
“It’s really making a lot of the GPOs and wholesalers rethink their business models, because they’re going to have to start aligning their incentives to meet my needs as a health system moving forward,” Dr. Frodin said. “I’m really curious to see in the next three to five years what GPOs do, as well as wholesalers, to meet this growing demand.”