American hospitals have been living with serious drug shortages for more than a decade, and after months of investigation, 60 Minutes found it's not a matter of supply and demand.
American hospitals have been living with serious drug shortages for more than a decade. Most days, nearly 300 essential drugs can be in short supply. After months of investigation, we found it's not a matter of supply and demand, the drugs are needed and the ingredients are easy to make, it's that pharmaceutical companies have stopped producing many life-saving generic drugs because they make too little profit.
Drug shortages can kill. In 2011, when norepinephrine, an old, low profit drug used to treat septic shock, was in short supply, hundreds of people around the country died. Cyndi Valenta: So much is being thrown at you, new-- back then I didn't understand. I thought there was one type of chemo that people took when they had cancer. I didn't realize there was this whole road map, um—this regimen we had to follow. Cyndi Valenta: Every function of your life went on this road map. So if -- chemo was supposed to be given on day one and day five, whether that was a holiday or not...we had to take john in to get his infusions.
Sarah and Cyndi raised all kinds of alarms on social media. A week later, drug maker Pfizer shipped scarce doses of vincristine to Loma Linda, enough for Mikah and John to continue their treatments.Milwaulkee pedatric oncologist Cindy Schwartz is a committee chair of the Children's Oncology Group, a consortium of cancer researchers and bioethicists from across the country.
Ross Day is a former director of Vizient, the country's largest group purchasing organization, or GPO - a health services company that negotiates contracts between hospitals, drug makers and medical suppliers. We asked them to spell out the economics of generic drug shortages — from the manufacturers to the hospitals and patients.Ross Day, Bill Simmons, their diagram and correspondent Bill Whitaker
Bill Whitaker: I guarantee you there'd be patients over here who would say,"I would pay more if I could be guaranteed I would get these drugs when I need them."these people will-- will absorb a lotta that $20 before it gets over here.
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