Drug Shortages: The Root Cause and a Consumer-Focused Solution
Drug shortages are on the rise, and the White House has unveiled a plan to combat them. However, the plan overlooks the primary culprit: the varying quality of generic medications, often imported from abroad.
The White House strategy aims to create and accredit organizations to rate drug manufacturers and hospitals on their efforts to maintain supply resilience. However, it fails to address the quality concerns that account for the majority of drug shortages.
Unlike agencies that prioritize product quality, such as the National Highway Traffic Safety Administration, the FDA assures that all generic medications are of equal quality. This assertion is contradicted by the high frequency of FDA recalls due to quality issues.
Wholesalers and pharmacy benefit managers prioritize low prices over quality, leading to over-reliance on generic drugs from China, India, and other countries with lax regulatory oversight. This makes the US vulnerable to supply disruptions and embargoes.
Instead of solely focusing on domestic production, the White House should adopt a consumer-focused approach. By informing drug suppliers that they will only purchase quality-tested medications, the market can incentivize high-quality manufacturing and eliminate lower-quality alternatives.
Independent testing and transparency would also facilitate the identification of problematic manufacturers for FDA inspections. As stated by the President’s national economic adviser, Lael Brainard, transparency among middlemen is crucial in addressing drug shortages.
By prioritizing quality over price, the US can restore the competitiveness of its generic drug industry and ensure the safety of its patients.
