The U.S. healthcare supply chain is a complex system, with multiple stakeholders — but it also is one of the most sophisticated and efficient distribution systems in the world. With HDA distributors providing between $33–$53 billion in cost savings to the U.S. healthcare economy each year, our industry is committed to improving access to lower-cost, high-quality medicines for patients.
Pharmaceutical distributors are responsible for the safe storage and delivery of 93 percent of medicines in the U.S. Moving medicines safely and securely from manufacturers to pharmacies and hospitals across the country is not easy, but an analysis from Berkeley Research Group (BRG) shows that HDA members do it every day for less than 1 percent of the cost of brand medicines — something no other entity in healthcare can do.
Every day, pharmacies, hospitals and other healthcare providers place orders with distributors for the medicines, supplies and equipment they need to serve their patients. In turn, distributors ensure that their distribution centers are stocked with every potential medicine, supply and piece of equipment their provider customers may need. Meanwhile, cost-effective delivery provides savings to the healthcare system by ensuring patients and providers can access the medicine they need when they need it.
Beyond delivery, distributors offer critical services to their customers, including information technology and data systems that help manage inventory and verify provider orders. Distributors also have strong capabilities to manage operational risks, such as identifying suspect and illegitimate products and assisting with recalls.
Pharmaceutical distributors provide a wide array of services that enable the pharmaceutical supply chain to function efficiently and safely, delivering significant value to manufacturers, pharmacists, healthcare providers and ultimately to patients.
Given our industry’s mission to ensuring safe and affordable healthcare for all Americans, HDA and our members support affordability solutions that will remove costs from the system, while building on the efficiency and reliability the American pharmaceutical supply chain currently delivers.