Improving Healthcare Cost-effectiveness with Cardinal Health
pharmatechoutlook

Improving Healthcare Cost-effectiveness with Cardinal Health

By Pharma Tech Outlook | Wednesday, February 13, 2019

The new era of the pharmaceutical supply chain is very complex. Medicine is manufactured with ingredients from different parts of the world, and the final composition is exported. Packing, repacking, and sale may take place in many countries. Drugs are manhandled many times between manufacturers and patients, and with every transaction, it presents an opportunity for second quality or falsified products to enter the market. Changes to the pharma supply chain could improve drug quality around the world.

Cardinal Health, Inc. is the 14th highest revenue generating company of the United States. Based in Dublin, Ohio, the company specializes in the distribution of medical products and pharmaceuticals, serving more than 100,000 locations. They also manufacture surgical products, including gloves, surgical apparels, and fluid management products. The company supplies to more than 75 percent of hospitals in the United States.

The two and fro sales are common among drug wholesalers, who purchase and sell drugs according to their market demands. That is, when they notice a scarcity in a particular region, they can buy the same drug from other wholesalers. Cardinal, the third largest pharmaceutical distributor, is the leading supplier to CVS Health’s retail pharmacy network. The thin profitability of the contracts and the huge amount of capital needed to build a top line global drug distribution operation have formed a competitive foundation for Cardinal that has primarily kept new entrants at bay. A top priority for Cardinal health is the safety and security of the nation’s pharma supply chain. They support efforts to combat adulteration, contamination and or counterfeiting of prescription drugs. Under the drug supply chain security act (DSCSA), Cardinal health has made transaction data available online for free to their customers. They also work in coherence with the manufacturers to collect data and ensure their ongoing compliance with DSCSA in a very efficient manner.

The healthcare supply chain is Cardinal’s largest business, supplying products from a little over 3,000 manufacturers. Cardinal Health is on an ambitious journey to integrate its supply chain operations with a wide range of logistics services that could probably improve the economics and delivery system of healthcare.

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