The impact of HR 2245 “Preserving Access to Life Saving Medications Act 2011”

Bill HR 2245 plans to require drug manufacturers to notify the Federal govt, 6 months in advance, of potential shortages. Shortages are defined as situations where the total supply is less than observed demand. The Federal govt is then required to work with manufacturers to identify alternate sources or alternate drugs. Given the significant role of drug distributors, and lack of supply chain visibility regarding stockpiles, how should drug manufacturers comply ? Given the role of retail prices in impacting supply, and pressures from HMOs to decrease drug costs, should the govt be required to mainain price floors to mantain manufacturer incentives for supply ? Should the FDA be required to manage production shutdowns and rampups in a timely manner to ensure drug availability ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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