Fed up with generics suppliers, US hospitals go ahead and form their own drug company

In a move that expresses healthcare providers’ frustration with generics pricing and allegations of price gouging, a consortium of hospitals in the USA have hit on a radical solution - starting their own pharmaceuticals company.

The New York Times reports that five organizations, representing over 450 hospitals, have joined forces to start the company with the intention of “helping patients by addressing the often unwarranted shortages and high costs of lifesaving generic medications."

The venture is led by Intermountain Healthcare, together with Ascension, SSM Health and Trinity Health, and in consultation with the US Department of Veterans Affairs.