Civica Rx, the nonprofit generic drug company formed by a group of hospital systems, expects to provide about 20 products this year to alleviate shortages, according to Reuters.
The company initially expected to offer 14 drugs in 2019, but it said partnerships with companies that have licenses to manufacture other generic medications will likely enable it to exceed that number.
Within three to five years, the company expects to offer up to 100 generic medications deemed critical to the everyday operations of its member hospitals.
CivicaRx did not identify its manufacturing partners but said it is negotiating long-term prices with them in exchange for commitments from its member hospitals to buy the products for five to 10 years.
"We want to be very competitive," Civica Rx CEO Martin Van Trieste told Reuters. "We want multiple manufacturers to make the products. We want our health systems to buy only half from us."
Civica Rx members will pay fees based on their size and the cost of the drugs they buy.
The formation of Civica Rx was made public last January, when Salt Lake City-based Intermountain Healthcare announced its intent to partner with other major health systems to address drug shortages and combat high medication prices.
Since the formation, Intermountain has raised more than $160 million from its members, which include Rochester, Minn.-based Mayo Clinic, Nashville, Tenn.-based HCA Healthcare and Renton, Wash.-based Providence St. Joseph Health, among others. Combined, the systems represent more than 800 hospitals.