Gray Market Perpetuates Drug Shortage Issues
Without going through the proper
going through the proper channels of buying and selling drug products, hospitals
are in danger of not only perpetuating the drug shortage issues but also run the
risk of using drugs which may have been stored improperly or may not be
The “gray market” is a term that has been used to describe companies operating
outside of the legitimate drug distribution chain that buy and sell drugs that
are in shortage at inflated price.
report by the House Committee on
Oversight and Government Reform
examined over 300 documents on drug shortages and found that some medications
that have been in short supply were being leaked into the gray market
distribution networks. This does
not only perpetuate the problems with drug shortages hospitals are facing around
the country, but also raises concerns about patient safety.
The report indicates that before the drugs reach their final destination,
they are often re-sold several times over.
It would be difficult to ensure the uncompromised integrity and
authenticity of these drugs through this excessive buying and selling strategy.
information on “Gray Market” issues visit the Committee on Oversight and
Government Reform at:
Committee on Commerce, Science, and Transportation; Senate Committee on Health,
Education, Labor and Pensions; House Committee on Oversight and Government
Reform. Shining Light on the “Gray
Market”, An Explanation of why Hospitals are Forced to Pay Exorbitant Prices for
Prescription Drugs Facing Critical Shortages.