Fact Check: "Drug shortages cost U.S. healthcare $900 million in labor annually."
What We Know
A recent survey conducted by Vizient, a healthcare performance improvement company, revealed that drug shortages are costing U.S. hospitals nearly $900 million annually in labor expenses. The survey, titled “Beyond the Shortage: The Hidden Cost of Drug Supply Chain Disruptions,” indicated that hospitals collectively spent approximately 20 million hours managing these shortages in 2023, which is more than double the labor costs reported in a similar survey from 2019, which estimated costs at just under $360 million (Vizient, AJMC). The survey included responses from 132 healthcare facilities, highlighting that pediatric hospitals faced even greater challenges, monitoring at least 25% more drug shortages than general facilities (Vizient).
Analysis
The findings from the Vizient survey are corroborated by multiple sources, which emphasize the significant impact of drug shortages on healthcare labor costs. The reported figure of $900 million is based on the total hours dedicated to managing drug shortages, which increased from 10.5 hours per week in 2019 to 24.2 hours per week per facility in 2024 (AJMC). This increase in labor hours reflects the growing complexity and frequency of drug shortages, which reached a record 323 active shortages in early 2024 (AJMC).
The reliability of the Vizient survey is bolstered by the organization's established reputation in healthcare analytics and performance improvement. Vizient serves a substantial portion of the U.S. healthcare market, including 97% of academic medical centers, which lends credibility to their findings (Vizient). However, it is important to note that while the survey provides a comprehensive overview of the labor costs associated with drug shortages, it may not capture all indirect costs, such as increased medication errors and disruptions in patient care, which could further inflate the total financial burden on healthcare systems (AJMC).
Furthermore, the survey indicates that 43% of respondents reported medication errors related to drug shortages, highlighting a critical area for improvement in patient safety (Vizient). This suggests that the impact of drug shortages extends beyond labor costs, affecting overall healthcare quality and patient outcomes.
Conclusion
Verdict: True
The claim that drug shortages cost U.S. healthcare $900 million in labor annually is substantiated by a credible survey conducted by Vizient, which provides detailed insights into the labor hours and associated costs incurred by hospitals in managing these shortages. The significant increase in labor costs since 2019, along with the survey's comprehensive data collection from a wide range of healthcare facilities, supports the accuracy of this claim.
Sources
- New Vizient survey finds drug shortages cost hospitals nearly $900M annually in labor expenses. Vizient
- Report Reveals Mounting Burdens of Drug Shortages on US Health System. AJMC
- Drug Shortages Cost Hospitals Nearly $900M Annually in Labor. Hit Consultant
