Franklin, Tenn.-based Community Health Systems was the first health system to partner with and buy medicines manufactured by Mark Cuban Cost Plus Drug Co., and expects the partnership to result in significant advantages for its hospitals.
"As we consider our approach to innovation, we recognize there are opportunities to rethink and even disrupt the way we purchase products and services," Lynn Simon, MD, president of clinical operations and chief medical officer at CHS, said during the company's April 25 earnings call. "As an example, our relationship with Mark Cuban Cost Plus Drug Company has the potential to generate significant advantages for our affiliated hospitals by addressing rising drug costs and drug shortages."
CHS, which operates 71 hospitals across 15 states, said it recently became the first health system to buy injectable drugs produced in the new Cost Plus Drugs manufacturing plant in Dallas. It purchased Epinephrine — also known as adrenaline and a drug that is on the FDA's current list of drug shortages — as well as Norepinephrine for its hospitals in Texas and Pennsylvania.
"Through this strategic partnership, CHS will be advising and collaborating with Mark Cuban Cost Plus Drugs about additional ways we can address pharmaceutical costs, avoid drug shortages, reduce waste and improve medication administration safety and patient care," Dr. Simon said. "We expect this work to benefit not only CHS, but also other forward-looking healthcare organizations."
Mark Cuban's pharmaceutical company sells thousands of drugs at a discounted rate to address drug supply issues. Brentwood, Tenn.-based ScionHealth on May 1 announced that it will begin purchasing certain bulk drugs from Cost Plus Drugs.