IRVING, Texas--(BUSINESS WIRE)--Novation, the nation’s largest health care services company, has released its latest Drug Price Forecast. This semiannual report provides pharmacy leaders and health system executives with the latest information and insight driving pricing changes in the pharmaceutical industry and aiding in the development of annual budget projections for their health system.
Novation estimates that for purchases made from Jan. 1, 2016, through Dec. 31, 2016, health systems can expect an 8.27 percent increase in costs. Factors influencing the higher prices include the increasing number and use of high-cost specialty medications, suppliers’ large financial investments into manufacturing capabilities, and the reduction in numbers of generic drug manufacturers.
“The latest Drug Price Forecast highlights key market changes affecting pharmaceutical costs,” said Brian Romig, Novation’s vice president of contract and program services, pharmacy administration. “Specialty drugs grew more than 30 percent last year alone and continue to be a driving force behind price increases. Pharmacy leaders now more than ever must be proactive and strategically plan to address these issues and implement cost-savings and quality optimization measures.”
To help pharmacy leaders plan accordingly and highlight specific issues to hospital executive leadership, Novation has developed a Drug Price Forecast letter. The letter outlines various factors affecting market dynamics over the past 18 to 24 months and provides relevant data that assist pharmacy leaders support market changes.
The Drug Price Forecast is based on the analysis of data from Novation’s Pharmacy Program participants’ purchases (price and volume) in hospital and non-acute care settings. The complete Drug Price Forecast report can be accessed by the hospital members and affiliates served by Novation.
About Novation, Recipient of the Ethisphere Institute’s Ethics Inside Certification
Novation is the nation’s leading health care services company, focused on revolutionizing operational performance for more than 100,000 members and affiliates of VHA Inc., UHC, Children’s Hospital Association and Provista LLC. Novation’s progressive approach to cost performance, data and intelligence, and integrated advisory solutions helps health care providers envision and advance new models of cost-effective, high-quality care. Headquartered in Irving, Texas, Novation is committed to the highest standards of ethical behavior and twice has been honored with the Ethisphere Institute’s coveted Ethics Inside® Certification, and has been named four years consecutively to Ethisphere’s World’s Most Ethical Companies list. To learn more about Novation, please visit novationco.com and follow @NovationNews on Twitter.