To reduce medication costs and mitigate drug shortages, Penn Medicine is uniting with Mark Cuban Cost Plus Drug Co., the health system said Dec. 6.
The Philadelphia-based organization will buy the 100 most frequently dispensed medicines through the company's Cost Plus Marketplace for its retail pharmacy network. Penn Medicine's 16 retail pharmacies fill more than 1.5 million prescriptions every year.
This marks the third health system to announce a partnership with Cost Plus Drugs. Louisville, Ky.-based ScionHealth and Penn Medicine have agreed to buy medications in bulk from the company's marketplace. Community Health Systems in Franklin, Tenn., is leveraging its partnership by buying therapies manufactured by Cost Plus Drugs and utilizing its wholesale drug distributor service.
The marketplace, which Mr. Cuban unveiled in early 2024, offers more than 4,000 medicines in short supply to healthcare facilities.
Kevin Mahoney, CEO of the University of Pennsylvania Health System, said in a statement that the partnership "will eliminate unnecessary mark-ups on common generic medications and allow us to reinvest those savings in care innovations."
Patients might not see immediate savings at the pharmacy counter, however.
"Though patients' insurance coverage determines their out-of-pocket prescription costs, they are expected to see other benefits from the partnership," Penn Medicine said. "As shortages of generic drugs remain an issue across the country, for instance, Cost Plus' model ... could help ensure continued access during future shortages."
Penn Medicine's vice president and chief pharmacy officer, Nishaminy Kasbekar, PharmD, is overseeing the partnership. Dr. Kasbekar told Becker's the partnership could grow to include sourcing from Cost Plus Drugs' manufacturing facility or expanding beyond the 100 medications.