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Cencora maintains a six-month safety stock reserve of critical medications for health systems enrolled in the sure supply program based on the health system’s monthly purchasing commitment. Unlike many other drug shortage mitigation solutions in the industry, Cencora negotiates long-term agreements with manufacturers to produce new and additional inventory, increasing the quantity of medication in the supply chain and mitigating the impact of supply gaps. Products are only added to the program if they are in good supply and production won’t impact manufacturers’ ability to meet market demand.
“No provider should have to delay or skip operationally critical treatments to patients because of supply gaps. Our sure supply program is designed so that providers have reliable access to the medications they need, when they need them,” said Matt Glucksmann, SVP & President, Health Systems & Government Services at Cencora. “As shortages persist, health systems need innovative solutions that meet today’s challenges while strengthening supply chain resilience for the future. Working closely with manufacturers to ensure additional inventory is created for our sure supply program members, we’re helping to create a more stable supply chain. Through the sure supply program, providers can help lessen the impacts of shortages for at-risk treatments so they can focus on what matters most—taking care of their patients.”
Cencora leverages its vast network of distribution centers to support the program, storing the six-month supply at the main distribution center closest to the participating hospital to enable timely and efficient access when needed. To right-size this additional inventory against market demand and avoid excess, Cencora closely monitors utilization of these critical medications. Within the last year, every health system enrolled in the program accessed at least one product from their safety stock.
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