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Allegheny Health Network Joins Civica Rx as One of 12 New Founding Members United in Effort to Reduce Chronic Drug Shortages

Friday, February 1, 2019

Allegheny Health Network (AHN) announced today that it is one of 12 health systems in the country to become new founding members of Civica Rx, a not-for-profit generic drug company recently established to reduce chronic drug shortages and price fluctuations.

The 12 new health system members of Civica RX represent approximately 250 hospitals across the United States. When combined with the hospitals represented by the initial governing members of the company, about 750 U.S. hospitals have joined the mission-driven venture so far, with many more health systems expressing interest.

Civica Rx was established in September 2018 by three philanthropies and seven leading health systems that experience first-hand the impact of drug shortages, which have become all too common and affect all aspects of the health care delivery system. The highly-collaborative initiative is expected to result in lower costs and more predictable supplies of many medicines, helping ensure that patients and their needs come first in the generic drug marketplace.

Civica Rx members will drive drug selection decisions to ensure Civica Rx manufactures the medications that are most essential to patient care.

“As part of an integrated healthcare delivery and financing system, AHN is always looking for opportunities to partner with innovators in our industry who share our values and commitment to delivering high-quality, high-value care,” said Cynthia Hundorfean, President and Chief Executive Officer, AHN “With Civica RX, we have entered a unique collaboration intended to help make  essential generic medications more accessible and affordable for the millions of patients we serve across the western Pennsylvania region.” 

In addition to AHN, the 12 new founding members include:

Advocate Aurora Health

Baptist Health South Florida

Franciscan Alliance

Memorial Hermann Health System

NYU Langone

Oschner Health System

Sanford Health

St. Luke’s University Health Network

Spectrum Health

Steward Healthcare

Unitypoint Health

“We are thrilled to welcome these highly-regarded health systems to Civica as founding members,” said Martin VanTrieste, CEO of Civica Rx.  “Drug shortages have become a national crisis where patient treatments and surgeries are canceled, delayed or suboptimal. We thank these organizations for joining us to make essential generic medicines accessible and affordable in hospitals across the country.”

Civica Rx expects to bring over 14 hospital-administered generic drugs to hospitals and health care systems in 2019 as the initial focus of the company’s efforts, with many additional medications to be prioritized by the healthcare systems as the next phase of focus for the company. Civica Rx is working towards becoming an FDA approved manufacturer and will either directly manufacture generic drugs or sub-contract manufacturing to trusted supply partners.

Civica Rx is collaborating with the American Hospital Association’s (AHA) newly formed AHA Center for Health Innovation to address inquiries about the initiative. Health systems and hospitals may call 800-242-4677 with questions, or visit www.civicarx.org for information.

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About Civica Rx

Civica Rx was established by philanthropies and leading health systems in the U.S. to ensure essential generic medicines are consistently accessible and affordable within a robust and reliable supply chain. Civica Rx, a not-for-profit, non-stock generic drug manufacturing company, acts in the best interest of patients who are at risk during drug shortages that are created by inconsistent, unpredictable, and often unstable market dynamics. As part of Civica Rx’s business model, health systems and philanthropy partners determine the drugs that Civica Rx manufactures based largely on the most urgent need. The process for drug selection goes through a newly created Civica Rx Drug Selection Advisory Committee, with medications to manufacture ultimately approved by Civica Rx’s governing board.