Without 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 pharmaceutically pure. 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. 

A 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. 

For more information on “Gray Market” issues visit the Committee on Oversight and Government Reform at:

http://democrats.oversight.house.gov/index.php?option=com_content&task=view&id=5761&Itemid=104&utm_source=

BenchmarkEmail&utm_campaign=e_News_08_08_12&utm_medium=email

Resources:

Senate 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.  (http://democrats.oversight.house.gov/images/stories/7.25.12%20Staff%20Report%20Shining%20Light%20on%20the%20Gray%20Market.pdf?utm_source=BenchmarkEmail&utm_campaign=e_

News_08_08_12&utm_medium=email) Accessed: 08/21/2012