01.21.2019

Drug Prices are Spiraling Up and Affecting Hospital Care

The American Hospital Association released a report last week showing that total drug spending per hospital admission increased 18.5% between FYs 2015 and 2017. Hospitals experienced price increases in excess of 80% across different classes of drugs, including those for anesthetics, parenteral solutions, opioid agonists, and chemotherapy. More than 90% of surveyed hospitals reported having to identify alternative therapies to mitigate the impact of drug price increases and shortages. And one in four hospitals had to cut staff to mitigate budget pressures.

"This report confirms that we are in the midst of a prescription drug spending crisis that threatens patient access to care and hospitals' and health systems' ability to provide the highest quality of care," said AHA President and CEO Rick Pollack. The new Congress has already begun to hold hearing on prescription drug prices.

The report, prepared by NORC at the University of Chicago for AHA, Federation of American Hospitals and American Society of Health-System Pharmacists, is available here.