Partnering with Mark Cuban

CHS recently announced a first-of-its-kind strategic partnership with Mark Cuban Cost Plus Drug Company (Cost Plus Drugs) — becoming the first healthcare system to purchase medications directly from Cost Plus Drugs for use in the hospital setting. The collaboration coincides with the opening of Cost Plus Drugs’ advanced fill and finish drug manufacturing plant in Dallas, Texas.

Initially, CHS-affiliated hospitals in Texas and Pennsylvania will purchase epinephrine and norepinephrine. The Food and Drug Administration includes epinephrine on its list of current drug shortages due to increased demand and manufacturing delays.

The partnership is expected to scale quickly to include more drug purchases and hospitals in other locations where CHS operates. Working together, the CHS and Cost Plus Drugs teams will help address critical issues impacting hospitals, including:

• Rising pharmaceutical costs: Cost Plus Drugs promises to supply drugs at a lower price point with minimal mark-up, aiding hospitals in managing inflationary pressures.
• Drug shortages: By manufacturing life-saving drugs often in limited supply, Cost Plus Drugs will collaborate with CHS to anticipate and mitigate potential future shortages.
• Pharmaceutical waste: Cost Plus Drugs offers flexible ordering options, including alternative vial sizes, to help CHS-affiliated hospitals minimize waste and streamline drug supplies.
• Patient safety: With unique vial sizes available, the risk of dosage errors can be minimized when medications must be measured before administration at the bedside.

“There are many opportunities for innovation in the healthcare industry, including rethinking, and even disrupting, the way providers purchase products and services,” said Lynn Simon, MD, President of Healthcare Innovation and Chief Medical Officer at Community Health Systems. “Our relationship with Mark Cuban Cost Plus Drug Company has the potential to generate significant advantages for our affiliated hospitals and for other forward-looking hospital organizations.”

With a footprint of more than 70-acute care hospitals and hundreds of other care locations, CHS and Cost Plus Drugs expect to grow the partnership in numerous and meaningful ways.

Commenting on the partnership, Mark Cuban said, “Our mission is to end drug shortages and this is just the first step. This is the start of what we know will be an amazing partnership that will reduce drug shortages and drug costs and enhance the care CHS hospitals provide for their patients.”