Cencora Expands Drug Shortages Mitigation Program to Strengthen Supply Chain
Cencora, a global leader in healthcare services, has significantly expanded its drug shortage mitigation initiative, the Sure Supply Program, to provide healthcare systems with a reliable and consistent supply of critical medications. This expansion now includes nearly 200 medications, including several oncology treatments, marking a more than 350% increase since the program’s inception in 2021. The program aims to address ongoing drug shortages, ensuring that healthcare providers have timely access to essential drugs, even when they are at risk of becoming scarce.
In 2023, over 99% of hospital and health system pharmacists reported experiencing drug shortages, which continue to create operational and financial challenges for healthcare institutions. The shortage crisis forces hospitals to spend valuable resources searching for alternative drugs and dealing with the administrative burden of procuring them. In response, Cencora’s Sure Supply Program has been designed to provide critical medications across various therapeutic categories, including oncology, critical care, cardiovascular care, and infectious diseases.
A key component of the Sure Supply Program is Cencora’s six-month safety stock reserve of critical medications. This reserve is based on the purchasing commitments of the health systems enrolled in the program. By maintaining this stock, Cencora ensures that healthcare providers have access to vital treatments, even in the event of supply disruptions. Unlike other shortage mitigation solutions in the industry, Cencora negotiates long-term agreements with manufacturers to produce additional inventory, increasing the availability of medications without compromising manufacturers’ ability to meet market demand. Only medications that are in stable supply and do not risk affecting the broader market are added to the program.
Matt Glucksmann, Senior Vice President and President of Health Systems & Government Services at Cencora, emphasized the importance of reliable access to medications for healthcare providers. “No provider should have to delay or skip critical treatments due to supply gaps,” he said. “Our Sure Supply Program is designed to ensure that providers have reliable access to the medications they need, when they need them. As shortages continue, health systems require innovative solutions that address current challenges and help build a more resilient supply chain for the future.”
Cencora’s extensive network of distribution centers plays a crucial role in ensuring the efficiency of the Sure Supply Program. Medications are stored at the nearest main distribution center to participating hospitals, which allows for prompt and efficient access. To avoid excess inventory, Cencora continuously monitors utilization patterns and adjusts stock levels accordingly. In the past year, every health system enrolled in the program has accessed at least one product from their safety stock, demonstrating the program’s real-world impact.
For healthcare providers like the University of Michigan Health System, the Sure Supply Program has been vital in navigating the challenges of national drug shortages. Dr. Austin Pytlowany, Clinical Pharmacist Specialist at the University of Michigan Health System, praised the program’s role in ensuring that critical medications, including commonly used oncology treatments, remain available. “The Sure Supply Program has allowed our team to continue providing uncompromised care for our patients,” said Pytlowany. “Knowing that we have access to the most essential products provides peace of mind, enabling us to focus on delivering the best possible care without worrying about drug shortages.”
The issue of medication shortages is complex and multifaceted, caused by factors such as production delays, supply chain disruptions, and increased demand. Addressing this challenge requires innovative thinking, collaboration among stakeholders, and a commitment to solving the root causes of the problem. The Sure Supply Program is just one of the many initiatives Cencora has launched to help stabilize the pharmaceutical supply chain and mitigate the impact of shortages on healthcare providers and patients.
Cencora continues to partner with both public and private sector stakeholders to develop and implement long-term solutions that create stability within the pharmaceutical supply chain. By strengthening relationships with manufacturers and working with healthcare providers, Cencora is contributing to the creation of a more reliable and resilient healthcare ecosystem.
As the frequency of drug shortages continues to rise, initiatives like the Sure Supply Program represent a critical step in addressing the growing demand for consistent medication availability. Through proactive collaboration and strategic stock management, Cencora is helping to alleviate some of the pressures faced by healthcare systems, ensuring that patients receive the care they need without disruption.
