Organization leadership team

The rise in prices of prescription drugs became a topic of concern as from 2008. The majority of American citizens felt that healthcare had become unsustainable due to unreasonable drug prices. Between the years of 2013 and 2015, spending on prescribed drugs increased by 20 percent, which was higher than the estimated 11 percent forecast (Sarpatwari et al., 2018).The United States spending on prescribed drugs exceeds far more than any other developed country. In 2016, the spending on prescribed drugs stood at 17 percent of the total healthcare expenditure. Per person, spending stood at $858 in 2013, which was exceedingly higher than per capita spending in any developed country. Even though the Affordable Healthcare Act (ACA) has reduced out of pocket spending on prescription drugs, individuals with chronic diseases such as cancer, mental illnesses spend an excess of $1,000 even though they have cover (Nguyen & Miller, 2018). Several causes have been advocated on this change, such as primarily the increase of manufacturer-branded products protected by market exclusivity, which is granted by the Food and Drug Administration (FDA) and the Trademark office(Waxman et al., 2017). Brand name drugs comprise of drug spending in the US. The country also allows manufacturers to set their own prices for a product, making them have a higher negotiating power. Insurers are also shifting costs to consumers primarily for chronic conditions by placing high-cost medications of the most expensive medication drug tier to keep consumers off.

This trend is more likely to have an impact on organizations, and some of the significant more immediate effects that organizations have had to endure are the experienced shortages of drugs. Drug spending and also expenditures have also had to be increased to manage the high cost of prescription drugs. Furthermore, organizations have had to pose on infrastructure investments, reduce staffing, and find alternative means of sustenance.

Many organizations are identifying various ways of dealing with the increased prices of prescription drugs. Some are considering engaging physicians and pharmacists in price reduction programs. Physicians and pharmacists play a role in determining which patient will receive what medicine and whether it is beneficial to use expensive drugs on a patient (Gronde, 2017). Such programs provide financial incentives for the prescribed people to save on cost and also reduces pharmaceutical expenditure for the company. Other organizations have adopted measures such as lowering of prices by inviting an open-tender negotiation. Open tenders are done by asking several suppliers for drugs in the same class for an entire market within a period of time. Suppliers who offer the lowest price get the tender.

To my organization leadership team, the best strategies to be put in place to deal with the impacts of this issue are for one to shift to generic medications. Generic medications can provide significant cost savings and are also more preferred by insurance plans. They are also as effective as the brand name medications, although the inactive ingredients are different. Also, exploring more options for medication can offer various cost-effective solutions. Most of the time, there will always be more than one option to treat the same condition. Providing alternatives for more expensive costs can be useful because pharmacists and physicians can always recommend more than one solution. These strategies on the positive side are that they will save the organization’s cost expenses in the already expensive market. However, the limitation s whether the alternatives can meet the quality of care needed to ensure that patients are ensured of complete recovery because it can end up making health care even more expensive if the suggested alternatives do not work as intended.

REFERENCE

Kesselheim, A. S., Avorn, J., & Sarpatwari, A. (2016). The high cost of prescription drugs in the

United States: origins and prospects for reform. Jama, 316(8), 858-871.

Nguyen, Q. C, & Miller, M. (May 2018). Addressing Out Of Control Prescription Drug Prices.     Federal and State Strategies. Retrieved from             https://www.communitycatalyst.org/resources/publications/document/2018/CC-            PrescripDrugPrices-Report-FINAL.pdf

Waxman, H., Corr, B., Martin, K., & Duong, S. (2017). Getting to the root of high pre      scription drug prices. Issue Brief (Commonw Fund), 2017, 1-10. Retrieved from             https://www.commonwealthfund.org/sites/default/files/documents/__media_files_publica tions_            issue_brief_2017_jul_waxman_getting_to_root_high_rx_drug_prices_ib_v2.pdf

Gronde Van D, 2017.             Addressing the challenge of high-priced prescription drugs in the era of precision medicine: A systematic review of drug life cycles, therapeutic drug markets and regulatory frameworks. PMC. doi: 10.1371/journal.pone.0182613