Spectrum Health System

Spectrum Health Joins Civica Rx as a Founding Member in National Initiative to Ensure Access to Medications, Lower Cost

January 7, 2019

GRAND RAPIDS, Mich. – Spectrum Health has announced it is joining with 11 health systems, representing approximately 250 hospitals across the United States, as a founding member of Civica Rx, a new not-for-profit generic drug company.

Civica Rx was established in September, 2018, by three philanthropies and seven leading health systems that experienced first-hand the impact of drug shortages, which have become all too common and affect all aspects of health care. The highly-collaborative initiative will result in lower costs and more predictable supplies of many medicines, helping ensure that patients and their needs come first in the generic drug marketplace.

Research into the actual costs of manufacturing and distributing generic drugs suggests that, in many instances, prices for generic drugs used in hospitals can be reduced to a fraction of their current costs.  This can save patients, and the health care systems that care for them, hundreds of millions of dollars each year.

“Spectrum Health’s purpose is to provide exceptionally high quality and affordable care and coverage in the most effective manner,” said Spectrum Health President & CEO Tina Freese Decker. “We are excited to join with Civica Rx and other health systems to improve mission-critical drug availability at lower prices, thus reducing the total cost of care.”

When combined with hospitals represented by the initial governing members of Civica Rx, about 750 U.S. hospitals have joined the mission-driven venture so far, with many more health systems expressing interest. Civica Rx members drive drug selection decisions to ensure Civica Rx manufactures the medications that are most essential to patient care

“Becoming a founding member of Civica Rx ensures the availability of drugs from both an inventory and pricing standpoint, ultimately driving down costs for the consumer,” said Roger Jansen, PhD, president, Spectrum Health Ventures. “Collaborating with Civica Rx and other health systems also changes the landscape to ensure that shortages of mission-critical drugs don’t occur in our communities.”

Civica Rx expects to bring over 14 hospital-administered generic drugs to hospitals and health care systems in 2019 as the initial focus of the company’s efforts, with many additional medications prioritized by the health care systems as the next phase of focus for the company. Civica Rx is working toward becoming an FDA-approved manufacturer and will either directly manufacture generic drugs or sub-contract manufacturing to trusted supply partners.

The other founding members in addition to Spectrum Health include:

  • Advocate Aurora Health
  • Allegheny Health Network
  • Baptist Health South Florida
  • Franciscan Alliance
  • Memorial Hermann Health System
  • NYU Langone
  • Oschner Health System
  • Sanford Health
  • Luke’s University Health Network
  • Steward Healthcare
  • Unitypoint Health

“We are thrilled to welcome these highly-regarded health systems to Civica as founding members,” said Martin VanTrieste, CEO of Civica Rx.  “Drug shortages have become a national crisis where patient treatments and surgeries are canceled, delayed or suboptimal. We thank these organizations for joining us to make essential generic medicines accessible and affordable in hospitals across the country.”

Founding members join the previously announced governing members of Civica Rx, which include Catholic Health Initiatives, the Gary and Mary West Foundation, HCA Healthcare, Intermountain Healthcare, Laura & John Arnold Foundation, Mayo Clinic, the Peterson Center on Healthcare, Providence St. Joseph Health, SSM Health, and Trinity Health. Civica Rx is collaborating with the American Hospital Association’s (AHA) newly formed AHA Center for Health Innovation to address inquiries about the initiative. Health systems and hospitals may call 800-242-4677 with questions, or visit www.civicarx.org for information.

Spectrum Health, a not-for-profit, integrated health system, is committed to improving the health and wellness of our communities. We live our mission every day with 31,000 compassionate professionals, 4,200 medical staff experts, 3,200 committed volunteers and a health plan serving 1 million members. Our talented physicians and caregivers are privileged to offer a full continuum of care and wellness services to our communities through 14 hospitals, including Helen DeVos Children’s Hospital, 230 ambulatory sites and telehealth offerings. We pursue health care solutions for today and tomorrow that diversify our offerings. Locally-governed and based in Grand Rapids, Michigan, our health system provided $483 million in community benefit in fiscal year 2018. Thanks to the generosity of our communities, we received $30 million in philanthropy in the most recent fiscal year to support research, academics, innovation and clinical care. Spectrum Health has been recognized as one of the nation’s 15 Top Health Systems by Truven Health Analytics®, part of IBM Watson HealthTM.

Contact:
Tim Hawkins
Media Relations
Office: 616.486.6091
Mobile: 616.443.0361
Email: timothy.hawkins@spectrumhealth.org