Stanford, Essentia and other health systems join Civica

Stanford Health Care, Essentia Health, Winona Health and Boulder Community Health have joined Civica, a nonprofit company that looks to increase access to generic drugs and stem persistent shortages.

Palo Alto, California-based Stanford, Duluth, Minnesota-based Essentia, Winona, Minnesota-based Winona and Boulder, Colorado-based Boulder Community are now part of Civica’s network of about 60 health systems and 1,400 hospitals, Civica said Thursday in a news release.

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“Partnering with Civica helps us ensure we’ll continue to have access to the pharmaceutical resources we need to care for people, regardless of external circumstances that may affect our normal supply chain,” Jill Ender, director of pharmacy at Winona, said in the release.

Hospitals that buy a particular drug from Civica typically commit 50% of their annual purchases to the organization at a set price for about two to three years, on average. Under the Civica model, health systems receive a steady, reliable supply of medicines widely used in the hospital setting, while manufacturers plan for a consistent production schedule.

Civica focuses on sterile injectable drugs, such as saline and epinephrine, which are often in short supply. Nearly half of the 95 new drug shortages that surfaced this year were sterile injectables, according to data from the American Society of Health System Pharmacists. Shortages can increase costs, limit access and worsen patient outcomes.

Health systems launched Civica in January 2018. Initially, Civica subcontracted with drug manufacturers to produce antibiotics, including vancomycin and daptomycin, and other medicines. Civica now provides nearly 80 different drugs to its member hospitals.

The company this year began making test manufacturing runs of its own products, such as insulin, at its manufacturing plant in Richmond, Virginia, which is pending Food and Drug Administration approval.

Correction: An earlier version of this story incorrectly said hospitals purchased drugs through Civica for a set price for five to 10 years.