Biden’s plan for hospitals to pay more for drugs in shortage is ‘misguided,’ group says

A ma­jor hos­pi­tal group is ques­tion­ing Pres­i­dent Joe Biden’s pro­pos­al for hos­pi­tals to spend ex­tra on med­i­cines as a way to ad­dress short­ages.

The White House on Tues­day pub­lished an 18-page white pa­per that fea­tures ideas to re­duce drug short­ages and ame­lio­rate sup­ply chain is­sues. It sug­gests there would be in­cen­tives for hos­pi­tals, such as re­ceiv­ing Medicare pay­ments, if they pri­or­i­tize sup­ply chain re­silience. But hos­pi­tals could face penal­ties if they se­lect a drug at a low­er price over an­oth­er med­ica­tion with a more re­silient sup­ply chain.

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