The Impact of Biosimilars on Hospital Supply Chain Strategies and Inventory Management

Written By Emily Carter , BS, CPT

Summary

  • Biosimilars are becoming increasingly popular in the United States healthcare system, offering cost-effective alternatives to traditional biologic drugs.
  • The procurement and inventory management of medical devices and equipment in hospitals are impacted by the introduction of biosimilars due to changes in purchasing patterns and budget allocation.
  • Hospitals must adapt their Supply Chain strategies to accommodate the growth of biosimilars and ensure they have the necessary equipment and resources to support these new pharmaceutical options.

Introduction

Biosimilars have been a hot topic in the healthcare industry in recent years, offering a more affordable alternative to expensive biologic drugs. As these biosimilar options become more widely available in the United States, hospitals must adjust their procurement and inventory management strategies to accommodate these new pharmaceutical options. In this article, we will explore how biosimilars impact the procurement and inventory management of medical devices and equipment in hospitals across the country.

Understanding Biosimilars

Before diving into the impact of biosimilars on hospital supply and equipment management, it's important to have a clear understanding of what biosimilars are. Biosimilars are biologic medical products that are highly similar to an already FDA-approved biologic drug, known as the reference product. However, unlike generic drugs, which are exact copies of their brand-name counterparts, biosimilars are not identical to the reference product due to their complex nature and manufacturing process.

Key Points about Biosimilars:

  1. Biosimilars must demonstrate similarity in terms of structure, function, and efficacy to the reference product through extensive analytical, preclinical, and clinical studies.
  2. Due to the complexity of biologic drugs, minor differences may exist between a biosimilar and its reference product, but these differences are not expected to impact the safety or effectiveness of the biosimilar.

Impact on Procurement

The introduction of biosimilars into the market can have a significant impact on the procurement practices of hospitals. Procuring biosimilars requires hospitals to reassess their purchasing patterns, supplier relationships, and budget allocation to incorporate these new pharmaceutical options into their formulary. Some key points to consider include:

Changes in Purchasing Patterns:

  1. Hospitals may need to shift their purchasing focus from traditional biologic drugs to biosimilars to capitalize on cost savings and promote more affordable treatment options for patients.
  2. Procurement teams must work closely with clinicians to educate them on the benefits of biosimilars and encourage their adoption in clinical practice.

Supplier Relationships:

  1. Hospitals may need to develop new supplier relationships with manufacturers and distributors of biosimilars to ensure a stable and reliable Supply Chain for these emerging pharmaceutical products.
  2. Collaboration with suppliers is essential to negotiate favorable pricing, secure timely deliveries, and establish mechanisms for monitoring and tracking biosimilar inventory levels.

Impact on Inventory Management

The introduction of biosimilars into the healthcare landscape also has implications for the inventory management practices of hospitals. Managing biosimilar inventory requires hospitals to optimize storage capacity, monitor expiration dates, and ensure adequate stock levels to meet patient demand. Some key considerations for inventory management include:

Storage and Handling Requirements:

  1. Biosimilars may have specific storage and handling requirements that differ from traditional biologic drugs, necessitating modifications to existing inventory storage facilities and processes.
  2. Hospitals must ensure that proper temperature control measures are in place to preserve the integrity and stability of biosimilar products throughout the Supply Chain.

Expiration Date Monitoring:

  1. Due to the limited shelf life of biosimilars, hospitals must closely monitor expiration dates and rotate inventory stock to prevent wastage and minimize the risk of administering expired products to patients.
  2. Implementing a robust inventory tracking system is essential to track expiration dates, manage stock levels, and facilitate timely replenishment of biosimilar products.

Adapting Supply Chain Strategies

To effectively manage the procurement and inventory of biosimilars, hospitals must adapt their Supply Chain strategies to accommodate the unique characteristics of these pharmaceutical products. Some key strategies for hospitals to consider include:

Supply Chain Integration:

  1. Hospitals should work towards integrating their Supply Chain processes to streamline the procurement, inventory management, and distribution of biosimilars across different departments and facilities within the healthcare organization.
  2. Utilizing advanced technologies, such as RFID tracking systems and automated inventory management software, can enhance Supply Chain visibility and improve the accuracy of biosimilar stock levels.

Collaborative Partnerships:

  1. Collaborating with pharmaceutical manufacturers, distributors, and group purchasing organizations can help hospitals gain access to competitive pricing, timely product deliveries, and valuable market insights on biosimilar products.
  2. Partnerships with industry stakeholders can also facilitate knowledge-sharing opportunities, training programs, and ongoing support to help hospitals navigate the complexities of biosimilar procurement and inventory management.

Conclusion

In conclusion, the rise of biosimilars in the United States healthcare system has significant implications for hospital supply and equipment management. Hospitals must proactively adjust their procurement and inventory practices to incorporate biosimilar products into their formulary, optimize storage and handling processes, and adapt their Supply Chain strategies to support the growth of biosimilars. By embracing these changes and leveraging collaborative partnerships and advanced technologies, hospitals can effectively manage the procurement and inventory of biosimilars while delivering cost-effective and high-quality care to patients.

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Emily Carter , BS, CPT

Emily Carter is a certified phlebotomist with over 8 years of experience working in clinical laboratories and outpatient care facilities. After earning her Bachelor of Science in Biology from the University of Pittsburgh, Emily became passionate about promoting best practices in phlebotomy techniques and patient safety. She has contributed to various healthcare blogs and instructional guides, focusing on the nuances of blood collection procedures, equipment selection, and safety standards.

When she's not writing, Emily enjoys mentoring new phlebotomists, helping them develop their skills through hands-on workshops and certifications. Her goal is to empower medical professionals and patients alike with accurate, up-to-date information about phlebotomy practices.

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