A shortage of everything except ERRORS

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Disclosure Succinylcholine Propofol Vitamin K Lorazepam Diltiazem Drug Shortages Current Status & State Survey Results Bill Stevenson Director of Pharmacy Oconee Medical Center I do not have a vested interest in or affiliation with any corporate organization offering financial support or grant monies for this continuing education activity or any affiliation with an organization whose philosophy could potentially bias my presentation. The FDA Background Information & History A shortage of everything except ERRORS FDA originated in 1906 first known as the Pure Food and Drug Act Good Manufacturing Practices (GMP) was developed by the FDA in 1938 73 years ago. GMP Inspection of facilities in the last year (2010) has caused 43 % of shortages in this country The FDA has received additional funding and increased their budget over the last two years (2010 2011) Current drugs shortages are mostly injections (80%) thus affecting hospitals much more than drug stores *From FDA Website FDA Staffing Major Reasons for Shortages Drug shortages occur due to the following: *Lack of resources / ingredients 10% *Inspections by the FDA manufacturing problems 43% *Delays in shipping 15% *Fewer companies making the products 8% *Less money for generics? % 1

Drug Shortages Breakdown by FDA Quality and Manufacturing Issues FDA Inspections The FDA received additional funding and increased their budget in 2010 2011. Inspection of facilities in the last 2 years has caused 43 % of shortages in this country. Current drugs shortages are mostly injections (80%) thus affecting hospitals much more than drug stores *From FDA Website The public is mostly unaware of the issue. Ramping up of inspections by the FDA in 2010 2011 drastically increased the warning letters sent to manufacturing facilities from 2010 to 2011 by 156%. The FDA began to ramp up GMP rules and regulations under the new commissioner in 2010 and 2011 Total Drug Shortages Compared To Sterile Injectable Shortages P&T Journal P T > v.36(11); Nov 2011 2

From The FDA Website In 2010 there were 178 drug shortages 132 were injectable drugs In 2011 there were 251 drug shortages - 183 were injectable drugs In 2012, there were 219 drug shortages In 2013, there are still 121 drug shortages Breakdown of Shortages The Real Meaning In 2013, there are still 121 drug shortages (one month into the new year) The 121 number mentioned above are classes of drugs. For example, 121 drug shortages in 2013: Propofol is counted as 1 in the number above but includes 12 different products according to FDA Hydromorphone is counted as 1 in the number above but include 27 different products according to FDA Potassium chloride is counted as 1 in the number above and includes 45 different products according to FDA Lidocaine is counted as 1 and the number of products and includes 57 different products according to FDA On the FDA website as of January 15, 2013, there are 822 drugs on backorder Wholesaler Backorders, Shortages, & Discontinues Our wholesaler reported the following on our vendor availability report: January 2012 4,242 November 2012 4,283 December 2012 4,336 January 2013 4,147 February 2013 4,167 U.S. House of Representatives Committee on Oversight and Government Reform Darrell Issa (CA 49), Chairman The drug shortage crisis has shed greater transparency on the dysfunctional price system that governs generic injectable medications. To improve the price mechanism, Congress should reform the way that Medicare pays for drugs so the program s reimbursements better reflect actual supply and demand conditions in the market. In a recent report from the US House of Representatives House Oversight Committee, the panel claimed the FDA the very agency tasked with dealing with shortages is partly to blame for the shortage situation. A common sense approach to regulations must be restored at the FDA. Agency protocols should be revised so that the agency is required to consider the implications of its actions on the nation s supply of critical drugs. U.S. House of Representatives Committee on Oversight and Government Reform Darrell Issa (CA 49), Chairman Recommendations Proposals to allow drug companies to share information about each other s manufacturing capability and product availability may have merit because of the extraordinary circumstances of the present drug shortage crisis. However, this type of information sharing potentially places consumers at risk as a result of collusion by the large manufacturers. "The committee has learned that FDA regulatory activity has effectively shut down 30% of the total manufacturing capacity at four of America's largest producers of generic injectable medications From their findings, the House Oversight Committee found that 58% of the drugs on the shortage list were produced at facilities cited by the FDA. They also found that the FDA's warning letters increased 156% from 2010 to 2011. Regulatory Issues for Hospitals Joint Commission recommends that hospitals standardize concentrations to minimize chance of errors This is almost impossible due to shortages CMS (Center for Medicare Services) mission and vision it based on promoting quality care. Drug shortages can jeopardize quality due to manipulations and unavailable medications in the proper concentrations. USP (United States Pharmacopeia) set stability and sterility standards for injectable medications. There is a regulation that requires manufacturers to notify the FDA when drugs are in short supply Board of Pharmacy inspections for compliance with stability and sterility standards 3

Increased Cost to Hospitals In March 2011, Premier stated the cost of purchasing alternative therapy to those in shortage $200 million ASHP estimated the additional labor cost to hospitals to manage shortages $216 million Problems with Drug Shortages Safety Concerns Slide 1 of 2 1) Hospitals receive no warning when a product becomes unavailable 2) Alternative drugs must be used during shortages Delays in treatment because of unavailability of drugs it takes time to contact Physicians to change medications 3) Buying different concentrations of a medications leads to medication errors. 4) Pharmacy and Nursing staff are unfamiliar with drugs that are not normally stocked and thus do not take the time to review the literature prior to administrations. 5) Pharmacies must perform time consuming searches for life saving medications which sets us up for failure and places our patients at risk 6) Hospitals are having to dilute, manipulate, and re label products that cannot be purchased in the most ready to use form. increases the chance of errors significantly 7) Extended length of hospital stay due to lack of product availability. Creates unsafe conditions for our patients 8) New or alternative medications obtained must be added to bar code systems, pharmacy inventory systems, automated dispensing cabinets, hospital Information systems, and computerized Physician Order Entry systems time consuming process that is massive with drug shortages Problems with Drug Shortages Safety Concerns Slide 2 of 2 9) Hard to find companies have began price gouging hospitals on prices for drug shortages. 10) Drug Shortages cause increased hospital costs and increased patient costs. 11) High prices for hard to find medications are still reimbursed at the same rate. 12) Manufacturing problems can cause drug recalls to occur with so many recalls, notices are delayed in getting to hospitals to insure timely removal of product for our shelves 13) Multiple dose vials are used to draw up syringes because of shortages increased chance of preparation errors and short dating of product required 28 day expiration date (USP 797 Regulation) 14) Hospitals compete with each other for drugs that are in short supply 15) Hospitals buy all available of a product that is on backorder stock piling 16) Emergency syringes (Sodium Bicarbonate and Epinephrine) are not available We now make up a kit very time consuming for care givers. 17) Increase chance of diversion when the only narcotic available is a 20 ml multiple dose vial of Fentanyl. ISMP and AHA Statistics The ISMP Survey from 2011 reported over 1000 adverse events, 25% were medication errors, and 20% were adverse drug reactions. Alternative drugs must be used during shortages Delays in treatment because of unavailability of drugs it takes time to contact Physicians to change medications The AHA July 2011 Survey found that 82% of hospitals reported delayed treatment and more than 50% said they could not provide some patients with the recommended therapy. ISMP Harm from Drug Shortages April 2012 Not One Specific Area 4

Actual News Captions Due to Drug Shortages Tracking Hard to Find Drugs 1) Child cancer patient deals with drug shortage Methotrexate 2) Chemo drug shortage to hit Hunter cancer hospital Doxorubicin 3) Drug shortage looms over hospitals Morphine& Fentanyl 4) Major drug shortage threatens lives & result in deaths Propofol, Antibiotics, Cardiovascular agents, TPN solutions 5) Fake Pharmacies Create Drug Shortages 6) ADHD Drug Shortage to end soon 7) Drug shortage fixes can ready US for disasters 8) Drug shortage crisis plagues pharmacists 9) Nearly All Anesthesiologists Report Drug Shortages 10) 72 pages of drug shortages on FDA web site as of April 2012 11) Drug shortage tied to cancer relapse in kids 12) Drug Shortages Persist in U.S., Harming Care 13) Is the FDA to blame for drug shortages CNN? OMC Hospital Stats Examples of Hard to Find Price Gouging Oconee Medical Center had 60 open purchase orders January 2012 We currently have 45 open Purchase orders January 2013 Hard to find companies are charging OMC enormous amounts on average a 395% more than our normal cost. We try our best not to use these companies. We have experienced as much as 1100% mark up from one company. Example of Price Gouging at Oconee Medical Center: a. January 2012 Promethazine injection backordered Our cost is $21 / pack of 25 b. February 1, 2012 3:29 PM Received email from Price Gouging Company $225 / pack of 25 1100 % c. February 1, 2012 3:47 PM OMC responded we cannot pay this d. February 1, 2012 3:49 PM Special approval from Allied to sell for $195/ pack of 25 950 % e. February 1, 2012 3:54 PM OMC responded still too high f. February 1, 2012 3:59 PM Final offer from Allied $175 / pack of 25 850 % Example of Quantities On Hand and Substitutions Letter to Senator Graham 5

Follow up Letter from Senator Graham Drug Shortage Survey Results In 2012, a drug shortage survey was sent to all Hospital Pharmacies in SC, NC, Georgia, and Florida. In SC, Pharmacists responded that 47% of the time, drug shortages created unsafe conditions for patients and staff. The results of this survey follow Drug Shortage Survey Completed April 2012 SC, NC, GA, and FL Percentage of Hospitals Tracking Shortages Average Mark Up Charged By Hard To Find Companies Yes Responses Should Government Control Price Gouging 6

Drug Shortages Require Additional FTE s Manipulations and Syringe Preparation Estimated Cost for Additional Syringe Usage Additional Hours/Week For Added Syringe Preparation Should Expiration Dates on Repackaging Be Extended Due to Drug Shortages? Yes Responses Suggested Extension of Expiration Date 7

% Hospitals That Track Exp Dates in ASM Pulling Expired Drugs From ASM Days in Advance Hospitals Pull Outdates from ASM How Hospital Pharmacies Communicate Drug Shortages Pharmacy Staff Time Required to Communicate Shortages Maintenance of Information Systems 8

Standardized Concentrations? Hospitals That Have Approved Auto Subs Chance of Errors Due to Manipulations Open Purchase Orders at Facilities Drug Recalls Removed in Time? No Safety When It Comes to Drug Shortages 9

Develop Strategies to Help With Shortages Determine the length of the shortage when possible Evaluate auto subs for shortages thru P&T Committee & determine when to use. Contact not just the wholesaler, but also the manufacturer sometimes shipments may be close or in transit. Initiate purchase orders at both sources & inquire how purchase order backorders are handled (ie new PO s each week, 1 item received completes PO, etc) Tell manufacturer you are having supply problems we found company shipped direct but because we had not called, they assumed we were fine. Determine if you should limit remaining stock to certain areas and specific patients. Dispense critical low amounts from drug shortages directly from central pharmacy remove from ASM Inform P&T committee and send out newsletters Contact reputable compounding companies for assistance. Summary Drug shortages are not getting any better Drug shortages require significant resources to manage Drug shortages have created unsafe conditions for patients & staff because of drug shortages. Support and understanding at the state & national level is needed to bring attention to what is actually happening in health care institutions Websites Notify the FDA of shortages at drugshortages@fda.hhs.gov Gray market FDA via Office of Criminal Investigations at http://www.accessdata.fda.gov/scripts/email/oc/oci /contact.cfm Price concerns at the Federal Trade Commission at http://www.ftc.gov US House of Representatives Committee on Oversight & Government Reform http://oversight.house.gov/wp content/uploads/2012/06/6 15 2012 Report FDAs Contribution to the Drug Shortage Crisis.pdfortage ISMP A shortage of everything except errors: Harm associated with drug shortages Thank you!! Information compiled by: Bill Stevenson Director of Pharmacy Services Oconee Medical Center 298 Memorial Drive Seneca, SC 29672 Bill.stevenson@oconeemed.org Office 864 885 7625 10