June 17, 2025- Vizient® announced its updated analysis of the financial impact of drug shortages for hospitals to their workforce and budgets. The new survey, “Beyond the Shortage: The Hidden Cost of Drug Supply Chain Disruptions,” revealed that in 2023, hospitals across the U.S. spent roughly 20 million hours managing a range of drug shortages, which translates to nearly $900 million annually in labor costs—more than double the labor costs reported of just under $360 million in the 2019 survey.
“The new survey’s findings illustrate how staffing burdens have surged since 2019, demanding more time and resources—especially in pediatric facilities—to simply navigate drug shortages,” said Nikola Markoski, director, pharmacy sourcing strategic solutions & analytics for Vizient. “If you add in the cost of more expensive alternative therapies, direct purchases outside the hospital’s traditional channels, medication errors and cancelled or delayed medical procedures, the actual total cost of managing drug shortages for hospitals far exceeds the nearly $900 million figure for additional labor.”
Overall, the 132 respondents who participated in the 2024 survey monitored an average of 43 drug shortages and a maximum of 70 over the course of 2023. Pediatric facilities monitored at least 25% more shortages than general facilities due to the high risk and complexity of pediatric populations coupled with treatment often requiring a mix of both adult-approved drugs and pediatric-approved drugs.
Additional findings from the survey include:
- 43% of respondents indicated medication errors that had occurred were related to drug shortages, up from 38% from the 2019 survey.
- 27% of respondents reported that drug shortages caused disruptions in patient care. Outpatient infusion services were most affected with 41% of patient cases omitted, missed or delayed.
- Planned medical procedures were also impacted by shortages, with disruptions reported in 32% of cases, followed by hospital admissions at 22%.
The findings of the updated survey, which focused on the period of January through December 2023, highlight the ongoing direct financial challenges caused by drug shortages, defined as an increase in hospital operating budget or labor expenses associated with drug shortages.
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