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2023 Pharmacy Purchasing Report

2023 Pharmacy Purchasing Report

In 2023 there was above average inflation across the board – and drug prices were not exempt from this trend. While drug prices tend to fluctuate year-over-year, drug prices increased by 15.2% on average from 2022 to 2023 – that’s a 3.7% greater increase than the previous year, translating to an average price increase of $590 per drug (source).

 

While drug prices continued to increase, hospital margins decreased, putting many hospitals at risk for closure – especially rural hospitals. According to a report from the Center for Healthcare Quality and Payment Reform (CHQPR), over 600 rural hospitals were at risk of closure in 2023 due to financial strain – that’s over 30% of all rural hospitals.

 

Rural hospitals are facing the worst of the impact of rising costs, but this still poses a serious issue for larger hospitals and systems as they try to save money and increase margins. While traditionally seen as a cost center, pharmacy drug spend can actually be a source of financial relief with the power of a spend optimization software.

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