In March, MultiCare Health System joined Mark Cuban Cost Plus Drug Co.'s Marketplace and accessed 125 generics at a discounted price. Between April and October, the partnership saved MultiCare $1 million.
By the end of November, the 13-hospital system saved an additional $120,000.
Although these savings represent a small portion of MultiCare's $350 million annual drug budget, the Tacoma, Wash.-based system sees significant opportunities for reinvestment, according to Tyson Frodin, PharmD, assistant vice president of pharmacy supply chain.
The partnership helps MultiCare invest in initiatives that "provide new service lines, new technology [and] new automation that also tends to drive more value for the system, better access to care for patients [and] better care for patients," he said.
Using data analytics, MultiCare identified 125 medicines with lower wholesale acquisition costs at Cost Plus Drugs compared to competitors. The system participates in Cost Plus Drugs' inpatient and retail medication portfolios, and Dr. Frodin told Becker's his department has seen the greatest success in the retail sector.
The drug list fluctuates but has remained at about 125 since the partnership began. Cost Plus Drugs occasionally increases or decreases prices, requiring MultiCare to adjust purchasing strategies or revert to the usual wholesaler. A second variable is the system's existing agreements with GPOs and wholesalers, which require careful compliance monitoring, Dr. Frodin noted.
The partnership has also increased transparency around spending on drug shortages. In 2023, the organization spent $733,000 on replacement therapies for drugs in short supply; so far this year, it has halved that to $350,000.
In "pharmacy, we've got big targets on our back," Dr. Frodin said. "We're a big spender of health system resources. And so any opportunity that we have to get better visibility, better accessibility, better pricing — those are opportunities that we should be really looking for."