Latest news with #Vizient®
Business Wire
29-07-2025
- Business
- Business Wire
Vizient Projects Continued Cost Pressures Across the Healthcare Supply Chain in 2026
IRVING, Texas--(BUSINESS WIRE)--Vizient® released its Summer 2025 Spend Management Outlook forecasting a 3.35% increase in pharmaceutical prices in 2026 with healthcare providers seeing increased usage in GLP-1 therapies, specialty medications and high-cost cell and gene therapies. Supply chain prices in products, materials and services are projected to rise 2.41%, led by IT services, capital equipment and surgical supplies. Read the Summer 2025 Spend Management Outlook. The Outlook provides a forward-looking analysis of product cost inflation for the 2026 calendar year and identifies ongoing market challenges—including the evolving impact of U.S. tariffs. Established tariffs as of April were considered in the formulation of the projections for supply chain categories outside of pharmacy. Vizient continues to monitor pending and potential tariffs working with suppliers and providers to mitigate any impact. CAR-T therapies and GLP-1s reshape pharmacy market dynamics An analysis of the Vizient Clinical Data Base shows specialty therapies—particularly CAR-T cellular therapies—emerge as one of the dominant drivers of inpatient drug spend across all acquisition channels. These treatments, such as Carvykti® manufactured by Janssen Biotech, a subsidiary of Johnson & Johnson and Yescarta®, manufactured by Kite Pharma, a Gilead Sciences company, are used for complex conditions such as hematologic cancers. 'These emerging therapeutic technologies are typically obtained through direct-from-manufacturer purchasing models rather than traditional wholesale distribution, which puts additional cost and operational pressures on healthcare organizations and clinical teams,' said Carina Dolan, associate vice president, clinical oncology, pharmacoeconomics & market insights, Vizient. 'Health systems must be equipped not only to deliver these therapies, but also to manage their financial impact and navigate the complex acquisition and reimbursement processes associated with them.' Spend for GLP-1 tirzepatide (Mounjaro® and Zepbound™), both manufactured by Eli Lilly and Company, surged by 167% in 2024 compared to 2023 among Vizient pharmacy program participants, with GLP-1 agents ranking seventh and eighth in total Vizient-tracked wholesaler pharmacy spend. As these therapies help reduce obesity-related conditions, hospitals may see a decline in certain associated procedures, including those for hernias, pressure-related wounds and soft tissue complications. At the same time, providers must prepare for potential increases in surgeries linked to medication side effects, such as cholecystectomies or procedures addressing gastrointestinal complications. Immune globulin surpasses Humira® amid rising autoimmune treatment costs Autoimmune and inflammatory therapies have overtaken oncology as the top therapeutic class for the first time, now accounting for 24.83% of total wholesaler-based pharmacy spend among Vizient program participants. Immune globulin is now the number one drug by spend, with a 22% increase since January, driven by expanding use in pediatric and chronic disease segments. Humira® (manufactured by AbbVie Inc.), a longstanding leader in total Vizient pharmacy spend, has declined 7.6% since January to No. 2 in total Vizient pharmacy program spend due to the increase in biosimilar competition. Indirect spend category and capital equipment lead supply chain inflation Indirect spend, encompassing non-clinical goods and services such as security, food services, information technology and construction, accounts for approximately 20-25% of a hospital's total expenses and is expected to rise 3.34%, driven by IT services prices, projected to rise 5.5% and prices for non-medical capital equipment for purchases such as HVAC and furniture, projected to rise 4.17%. Rising labor costs, diseases impacting poultry, cattle and produce and weather-related events, such as drought in the Midwest leading to reduced cattle herds, are driving cost pressures across key food categories—contributing to supply instability and continued pricing volatility. Food prices are projected to increase by 3.31%. 'These changes will significantly impact procurement strategies for health systems in the coming year,' said Jeff King, research and intelligence director, Vizient. Additional areas of focus include: Medical capital equipment— Molecular imaging and nuclear medicine emerged as a newly tracked capital spend category, reflecting growing investment in precision diagnostics and theranostics, therapies that combine therapeutic and diagnostic radiopharmaceuticals, across health systems. Molecular imaging and nuclear medicine emerged as a newly tracked capital spend category, reflecting growing investment in precision diagnostics and theranostics, therapies that combine therapeutic and diagnostic radiopharmaceuticals, across health systems. Surgical supplies— Prices for surgical supplies are projected to rise 3.28%, driven in part by increases in raw material prices, manufacturing labor costs and fluctuating freight expenses. Prices for surgical supplies are projected to rise 3.28%, driven in part by increases in raw material prices, manufacturing labor costs and fluctuating freight expenses. Physician preference items—This category, including cardiology, surgical services and orthopedic devices, continues to show high variability, underscoring the need for greater standardization and strategic sourcing strategies. The Spend Management Outlook projects the price of products purchased in both the acute and ambulatory care environments providing a year-over-year estimate of the expected price changes. Pharmacy projections are based on Vizient client purchases made through traditional wholesaler channels from April 1, 2024 through March 31, 2025. Supply chain projections are based on a Vizient analysis of various public sources including the U.S. Bureau of Labor Statistics, U.S. Department of Agriculture, the Energy Information Administration and Vizient product category expertise. Read more about the latest Spend Management Outlook. About Vizient, Inc. 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
Business Wire
17-06-2025
- Health
- Business Wire
New Vizient Survey Finds Drug Shortages Cost Hospitals Nearly $900M Annually in Labor Expenses
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
