Civica Rx prepares to launch independent drug company and disrupt US medical industry.
There’s little doubt that every aspect of the US medical industry is broken. This is an era in which American citizens with full-time jobs still have to hold crowdfunding campaigns to pay for their prescriptions or treatments, a fact that should churn the stomach of every single taxpaying consumer.
Unfortunately, it’s been part of the status quo for so long that the outrage barely registers on the thought-meter. However, some unlikely individuals are doing something about it, at least in terms of causing a disruption for their own companies, one that might have a ripple effect that benefits more people.
Earlier this year, Amazon, Berkshire Hathaway, and JP Morgan reportedly set about creating their own health insurance network for their employees.
Rather than foot some of the outrageous costs associated with buying into existing for-profit third-party companies, these tech, financial, and real estate big dogs were simply going to form their own health insurance company to meet their employees’ and families’ needs.
Now, a new merger is in the works, one whose goal is to meet the supply needs of hospitals in the face of outrageously hijacked price gouging and artificial shortages that increase prices.
Introducing Civica Rx
Called Civica Rx, it’s the brainchild of several hospital systems who are fighting back against supposed shortages of commonplace, even generic drugs, ones that could be created right in the hospital pharmacy if only there weren’t proprietary regulations in place.
By creating a pharmaceutical company within its doors, it’s no longer a hospital making medicines, but rather a drug company with the legal right to do so.
Civica Rx will operate as a non-profit company and offer its services to other medical centers outside of its company. Suffice to say, however, “The new company plans to market 14 common generic drugs that have been in short supply and whose prices have risen in recent years.”
While more details are still under wraps, it’s another example of how industry outsiders are taking on the ridiculous price gouging in the modern healthcare system. With more entities take a stand and demanding change, hopefully more sweeping reforms will follow.