Hospital operator Community Health Systems Inc. has expanded its partnership with Mark Cuban Cost Plus Drugs Co., allowing its 71 hospitals to purchase various generic medicines from the Dallas startup. This announcement was aired by Dallas, Texas' television network, WFAA, which also reported that the collaboration aimed to increase the availability of essential medications.
Initially, Community Health Systems (CHS), based in Franklin, Tennessee, partnered with Cuban's Cost Plus Drugs in March to procure norepinephrine and epinephrine, both of which have been in short supply according to the Food and Drug Administration. The initial partnership also allowed CHS hospitals to order medications in flexible vial sizes, reducing waste and minimizing the potential for dosage errors.
This updated partnership between Community Health Systems and Mark Cuban Cost Plus Drugs allows CHS-affiliated hospitals to purchase 12 more types of medications beyond the initial ones. These new drugs include antibiotics and medicines for nausea.
Mark Cuban Cost Plus Drug
Cost Plus Drugs, which charges a 15% markup on the price of each drug, currently offers 2,500 generic medications, up from its initial 1,000 since its launch in 2022.
The new partnership is expected to lessen pharmaceutical waste and improve medication administration safety across several CHS hospitals. After all, as one of the largest healthcare companies in the U.S., CHS's subsidiaries own or lease 71 hospitals across 15 states, with roughly 12,000 beds.
Lynn Simon, CHS president of healthcare innovation and chief medical officer, cited two main points about the partnership with Cost Plus Drugs. Firstly, it offers massive advantages, such as immediate cost savings on commonly used hospital medications. Secondly, the collaboration addresses pharmaceutical challenges that affect hospitals nationwide and is an effort to improve its overall supply chain.
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