RazorMetrics’ Mail Delivery is the Solution

Cisplatin is one of those drugs that save people’s lives. It is used to treat cancer of various types because it interferes with cancer cell’s DNA. So, it was a serious hardship when the supply of cisplatin was extremely limited for over six months. Beyond disrupting critical cancer treatments, the shortage raised prices and negatively impacted the budgets of practices, payers, and patients.

According to a study presented at the 2024 American Society of Clinical Oncology (ASCO) Quality Care Symposium, the cisplatin shortage raised costs for practices within the U.S. Oncology Network by 16% for treating head and neck cancers. The increase was largely driven by the utilization of alternative drugs like cetuximab, whose average administration cost ($2,607) dwarfs that of cisplatin ($18). The cost increase fell not only on practices and payers but also on patients, who faced higher than-expected out-of-pocket costs. Even after the shortage officially ended, the study noted lingering changes in cisplatin utilization, underscoring the long-term financial and operational impacts of shortages.

Costly Workarounds, Fragmented Access

Drug shortages are a problem for healthcare providers because providers must rely on more expensive alternatives or delay treatment, neither of which is a good option. The difficulty is compounded by logistical hurdles. Local pharmacies and practices scramble to secure limited supplies for their area. Providers and pharmacists have the dual challenge of finding suitable drug substitutes, while also ensuring patients continue to receive safe, effective, affordable, and timely treatment.

For self-funded employers and health plans, the cascading costs from shortages can be particularly damaging. Specialty drugs are already among the most significant contributors to rising healthcare expenditures. When shortages push their demand even higher, the financial burden becomes unsustainable.

Proactive Mail Delivery Programs

RazorMetrics offers a powerful tool to mitigate the impact of drug shortages: a robust discount pharmacy mail delivery program integrated into its RxAdvocate solution. Shortages are often tied to geography, so expanding drug access to a broader area removes the fragmentation problem. Mail delivery helps patients and providers avoid the workaround scramble created by shortages. Here’s how it works:

1. Expanded Access to Alternatives:  Connects patients to a broader network of pharmacies, increasing the likelihood of finding scarce medications or more cost-effective alternatives.
2. Cost Management: By proactively sourcing medications through its mail delivery network, RazorMetrics helps self-funded employers and health plans avoid the steep price increases from drug shortages.
3. Continuity of Care: Ensuring timely delivery of medications means fewer treatment delays. Not only does the program support better health outcomes but it also reduces the risk of expensive complications caused by interrupted care down the road.
4. Transparency and Advocacy: RazorMetrics’ tools provide clear, actionable insights for plan sponsors and providers, ensuring treatment decisions remain aligned with both clinical guidelines and cost-saving objectives.

Preparing for the Next Shortage

The cisplatin shortage is not an isolated incident. As the study authors noted, the impacts of drug shortages on treatment decisions, costs, and outcomes warrant healthy skepticism about future drug access security. Organizations should not wait for systemic changes to start addressing these issues.

Solutions like RazorMetrics’ mail delivery program builds resilience into organization’s health systems, ensuring they’re better prepared to navigate the next shortage. Whether by providing timely access to medications or reducing the financial strain, RazorMetrics offers a more sustainable approach to pharmacy cost containment.

Ready to learn more about how RazorMetrics can support your organization during drug shortages? Contact us today.