Drug shortages are hitting hospital budgets hard, and with already constrained labor power and resources, staff have less capacity to focus on value-added patient and clinical services. Hospitals face nearly $900 million in added costs each year, including higher labor and operational costs to source, substitute, and administer alternatives.
American Society of Health System Pharmacists reports drug shortages can drive up hospital drug budgets by as much as 20%. With costs climbing, healthcare administrators and finance leaders need smarter drug purchasing optimization strategies to both contain expenses and protect care quality.
CostCheck: Real-time drug purchasing intelligence to reduce shortage-driven cost swings
Forward-looking healthcare leaders are turning to cost optimization technology like CostCheck that integrates real-time pricing, contracts, and consumption data to build financial resilience before shortages hit. By centralizing this information, pharmacy and finance teams can:
- Optimize baseline spend – Identify clinically equivalent alternatives at lower prices, delivering average savings of up to $15,000 per recommendation
- Protect margins – Uncover hidden contracting billing mistakes and safeguard 340B and GPO programs
- Build procurement intelligence – Monitor price fluctuations in real-time and strengthen supplier negotiations with accurate utilization data
- Establish financial baselines – Track where money goes and how market disruptions shape spend patterns
ShortageCheck: Predict and prioritize shortages with days-on-hand and risk scoring
CostCheck creates the foundation, but when shortages strike, healthcare teams need dedicated shortage management capabilities. ShortageCheck builds on this financial intelligence to help teams:
- Predict proactively – Leverage data modeled from >3,000 healthcare facilities and 55M invoiced items to forecast potential shortages before they impact you
- Prioritize smartly – Focus resources on shortages that will actually impact your facility based on days-on-hand calculations and predictive risk scoring
- Respond quickly – Streamline communication and task management across pharmacy, clinical, and supply chain teams
CostCheck powers the baseline; ShortageCheck drives shortage response
Together, CostCheck and ShortageCheck create a cohesive suite that optimizes your finances for inevitable shortages while enabling you to predict, plan, and mitigate disruptions in both financially optimal and operationally efficient ways.
Staying stagnant will only keep costing more
The financial stakes are only rising. U.S. drug spending increased by $50 billion in 2024, an 11.4% jump from the previous year, and there is no indication that trend will slow. Hospitals that continue relying on outdated processes risk deeper losses and greater instability when the next wave of shortages hits.
By contrast, those that adopt modern purchasing and cost optimization strategies position themselves to weather supply challenges, safeguard budgets, and maintain high-quality patient care.
Resilience is not built overnight
True financial resilience requires a shift from reactive cost management to proactive, data-driven strategies. Hospitals that embrace technology to optimize drug purchasing and spending reviews can turn drug shortages from a source of major disruption into a manageable challenge.
Frequently Asked Questions
1) How do drug shortages impact hospital budgets and care delivery?
Drug shortages drive up costs and strain staff time. Hospitals can face nearly $900M in added annual costs, and shortages can increase drug budgets by up to 20%, reducing capacity for patient-focused work.
2) How does CostCheck help hospitals prepare before shortages hit?
CostCheck centralizes real-time pricing, contract, and usage data so teams can find lower-cost clinical alternatives, catch billing/contracting issues (including 340B/GPO), and track pricing shifts to set baselines and negotiate better.
3) What does ShortageCheck do during a shortage, and how does it work with CostCheck?
ShortageCheck builds on CostCheck’s financial insights to forecast shortages, prioritize what will impact your facility (days-on-hand and risk scoring), and coordinate faster response across pharmacy, clinical, and supply chain teams.