New Vizient Survey Finds Drug Shortages Cost Hospitals Nearly $900M Annually in Labor Expenses

Business Wire

17-06-2025

IRVING, Texas--(BUSINESS WIRE)-- Vizient ® today announced its updated analysis of the financial impact of drug shortages for hospitals to their workforce and budgets. The new survey, ' Beyond the Shortage: The Hidden Cost of Drug Supply Chain Disruptions,' revealed that in 2023, hospitals across the U.S. spent roughly 20 million hours managing a range of drug shortages, which translates to nearly $900 million annually in labor costs—more than double the labor costs reported of just under $360 million in the 2019 survey.
'The new survey's findings illustrate how staffing burdens have surged since 2019, demanding more time and resources—especially in pediatric facilities—to simply navigate drug shortages,' said Nikola Markoski, director, pharmacy sourcing strategic solutions & analytics for Vizient. 'If you add in the cost of more expensive alternative therapies, direct purchases outside the hospital's traditional channels, medication errors and cancelled or delayed medical procedures, the actual total cost of managing drug shortages for hospitals far exceeds the nearly $900 million figure for additional labor.'
Overall, the 132 respondents who participated in the 2024 survey monitored an average of 43 drug shortages and a maximum of 70 over the course of 2023. Pediatric facilities monitored at least 25% more shortages than general facilities due to the high risk and complexity of pediatric populations coupled with treatment often requiring a mix of both adult-approved drugs and pediatric-approved drugs.
Additional findings from the survey include:
43% of respondents indicated medication errors that had occurred were related to drug shortages, up from 38% from the 2019 survey.
27% of respondents reported that drug shortages caused disruptions in patient care. Outpatient infusion services were most affected with 41% of patient cases omitted, missed or delayed.
Planned medical procedures were also impacted by shortages, with disruptions reported in 32% of cases, followed by hospital admissions at 22%.
The findings of the updated survey, which focused on the period of January through December 2023, highlight the ongoing direct financial challenges caused by drug shortages, defined as an increase in hospital operating budget or labor expenses associated with drug shortages.
To help providers address the financial pressures related to drug shortages, Vizient offers strategic solutions through its contracting capabilities and pharmacy programs such as the Novaplus Enhanced Supply and Novaplus Enhanced Supply Reserve. Since their inception in 2021, Vizient clients have accessed over 4 million additional units of onshore manufacturer inventory across more than 200 high-impact critical molecules, including many frequently reported in shortage. This expanded access has played a vital role in improving medication availability, maintaining continuity of care and reinforcing resiliency across the supply chain.
In addition to medication access, clients who participate in these programs avoid the financial burden of shortages by mitigating labor costs associated with sourcing and managing alternatives and reducing the need for emergency purchasing. Since 2023, Vizient estimates the programs have generated nearly $300 million in inventory cost avoidance for participating clients.
'While our supply assurance strategies are making a significant difference in practice, the findings of this survey reflect on the work that remains to be done, which is why Vizient continues to expand its strategies for pharmaceuticals and other critical supplies,' said Mittal Sutaria, PharmD, senior vice president, pharmacy contract and program services for Vizient.
Read the full report here.
Vizient, Inc., the nation's largest provider-driven healthcare performance improvement company, serves more than 65% of the nation's acute care providers, including 97% of the nation's academic medical centers, and more than 35% of the non-acute market. The Vizient contract portfolio represents $140 billion in annual purchasing volume enabling the delivery of cost-effective, high-value care. With its acquisition of Kaufman Hall in 2024, Vizient expanded its advisory services to help providers achieve financial, strategic, clinical and operational excellence. Headquartered in Irving, Texas, Vizient has offices throughout the United States. Learn more at www.vizientinc.com.