Hospital drug expenditures dip as COVID
pressures subside
BETHESDA, Md., April 24, 2024 /PRNewswire/ -- Blockbuster growth
in weight-loss drugs was the main driver of a 13.5% increase in
spending on prescription medications in the U.S. in 2023, according
to ASHP's (American Society of Health-System Pharmacists) report,
National Trends in Prescription Drug Expenditures and
Projections for 2024. By contrast, hospital drug spending
dipped slightly as the pandemic ended and remdesivir injections
were replaced by less-costly oral COVID treatments.
Growth in weight-loss drugs was the main
driver of a 13.5% increase in spending on prescription medications
in 2023.
Spending on weight-loss drugs — originally marketed as diabetes
treatments —will likely continue to climb as supplies catch up with
the huge demand, the report predicted. The trend will escalate
further as additional similar drugs come to market and as the FDA
approves the medications for more conditions, said the report's
lead author Eric Tichy, Pharm.D.,
M.B.A., division chair, supply chain management at Mayo Clinic,
Rochester, Minn.
Expenditures for semaglutide doubled last year, making it the
new top-selling drug in the U.S., replacing adalimumab, which
treats autoimmune diseases like rheumatoid arthritis and Crohn's
disease. Sales of adalimumab continued growing despite the
availability of less costly biosimilars. Adding to the weight-loss
category, spending on the diabetes drug tizepatide grew an
astounding 373% even though its approval for weight loss came late
in 2023.
Meanwhile, hospital drug spending decreased by a modest 1.1%,
extending a long relatively steady period of expenditures that was
interrupted only by a spike during COVID. The report said the
decrease was caused by the continued decline in the use of
expensive COVID medications, the adoption of lower-cost
biosimilars, and the growth of the 340B program, which allows some hospitals to
purchase drugs at a reduced price.
"Hospitals and health systems are doing a commendable job using
available tools to manage drug expenditures, which typically
represent about 10% of their budgets," Tichy said. "Pharmacy and
health-system leaders should persist in their proactive management
and continue to anticipate disruptions that may affect drug
spending."
The Inflation Reduction Act, in its second year, influenced 2023
spending, but the full effect of its savings won't be felt until
2026 for retail and mail order pharmacy and 2028 for hospitals and
clinics. While price negotiations required under the law will
reduce prices on certain drugs, it could drive up spending on some
medications as more people use them, Tichy said.
Other key findings:
- Drug expenditures in clinics grew 15% driven by increased use
of high-cost injectable medications for cancer, immunology, and
neurology.
- At 2.9%, inflation in drug prices was lower than consumer price
inflation for the fourth consecutive year. Consumer price inflation
was 3.4%.
- Uptake of biosimilars in hospitals and clinics continues to be
strong, helping contain total expenditures; biosimilar uptake in
retail and mail-order pharmacies was more limited.
"Policymakers, pharmacy leaders, and hospital and health-system
decision makers can benefit greatly from this report," said
Daniel J. Cobaugh, Pharm. D., FAACT,
DABAT, senior vice president of professional development and
publishing at ASHP and editor-in-chief of AJHP, which
published the paper. "The drug expenditures report provides an
opportunity for a deeper understanding of the complex factors
influencing the costs of medications to inform strategic decisions
about allocating resources to support appropriate use of these
complex agents."
About ASHP
ASHP is the largest association of pharmacy
professionals in the United
States, representing 60,000 pharmacists, student
pharmacists, and pharmacy technicians in all patient care settings,
including hospitals, ambulatory clinics, and health-system
community pharmacies. For over 80 years, ASHP has championed
innovation in pharmacy practice, advanced education and
professional development, and served as a steadfast advocate for
members and patients. In addition, ASHP is the accrediting body for
pharmacy residency and technician training programs and provides
comprehensive resources to support pharmacy professionals through
every stage of their careers. For more information, visit ashp.org
and ASHP's consumer website, SafeMedication.com.
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SOURCE ASHP (American Society of Health-System Pharmacists)