What’s Driving Drug Shortages?

What’s Driving Drug Shortages?

By OctariusRx – Consultant Pharmacy Services for ASCs

Drug shortages have become a persistent and increasingly complex challenge in U.S. healthcare. While many of us may think of them as temporary hiccups, the truth is that the root causes are structural, multilayered, and demand proactive management. For ambulatory surgery centers (ASCs), where medications—including injectables, anesthesia adjuncts, and controlled substances—are vital to safe procedural flow, understanding and planning for these drivers is critical.

Here’s a breakdown of what’s behind drug shortages, why they persist, and what your facility needs to be thinking about — with actionable steps from OctariusRx.

Major Drivers of Drug Shortages

    1. Manufacturing & Quality Problems

One of the most commonly cited reasons for shortages is issues in drug manufacturing — or manufacturing that cannot scale fast enough to meet changing demands. The Food and Drug Administration (FDA) notes that manufacturing problems are the leading cause of many shortages.

    • Older manufacturing plants may face aging equipment, federal inspection backlogs, or required remediation, which can force production slowdowns or shutdowns.
    • Sterile injectable drugs (especially generics) are exceptionally vulnerable because their production is complex, expensive, and relies on high-volume and high-quality processes.
    • Quality failures or contamination may trigger recalls or suspensions, immediately reducing supply.
  1. Supply Chain & Raw Material Constraints

    Another key driver lies upstream in the supply chain:

    • Many medications rely on a small number of active pharmaceutical ingredient (API) manufacturers – often overseas – making the chain fragile.
    • Logistics disruptions, transport delays, or component shortages (such as vials, packaging, or excipients) can interrupt supplies.
    • Natural disasters, geopolitical tensions, pandemic-related shutdowns, or shipping constraints can ripple into drug availability.
  2. Economics, Market Incentives & Generic Drug Vulnerability

    The economics of drug manufacturing play a large but often unseen role:

    • Many drugs subject to shortage are older generics with very low profit margins. With minimal margin, manufacturers may exit the market, reduce production, or decline investments in capacity.
    • Because generic business models prioritize cost-competition over capacity resilience, there is often insufficient redundancy in the system.
    • Even if a manufacturer wants to increase volume, regulatory, equipment, and capital hurdles can delay or prevent rapid expansion.
  3. Demand Surges and Market Disruptions

    While supply-side issues often dominate, demand can also trigger shortages:

    • Unexpected usage spikes (such as during pandemics) put pressure on existing supplies.
    • Changes in clinical guidelines, expanded indications, or increased procedural volumes may raise demand for certain drugs faster than supply can respond.
    • Controlled-substance quota adjustments or policy changes may redirect supplies or create tighter controls.
  4. Regulatory & Policy Overlay

    Regulation and policy layer on top of all these drivers:

    • Regulatory inspections, enforcement actions, or facility remediation can shut production lines or delay shipments.
    • Consolidation of production or fewer manufacturing sites reduce redundancy and system resilience.
    • While manufacturers must notify the FDA of discontinuations or shortages, these steps do not always prevent abrupt supply loss or delay.

Why These Drivers Matter for ASCs

For ambulatory surgery centers (ASCs), these systemic factors translate into operational risk:

  • Medications used for anesthesia, sedation, pain control, or emergency interventions may suddenly become hard to obtain or cost more.
  • Substitutions or alternative agents may become necessary — which can introduce unfamiliar workflows, dosing uncertainty, and additional staff training burden.
  • Scheduling may be disrupted if a key drug isn’t available, or cost pressures may increase for your facility.
  • The less resilient your medication supply chain, the greater the need to plan, monitor, adapt and mitigate risk.

Strategic Considerations & What You Can Do

Here are actionable steps recommended by OctariusRx to mitigate the impact of these drivers:

  • Establish a Shortage Watch List: Track medications with known vulnerability (e.g., injectables, low-margin generics, sterile agents).
  • Review Your Formulary & Identify Alternatives in Advance: Don’t wait until a shortage hits — preapprove fallback therapies and incorporate them into your clinical pathways.
  • Engage with Your Pharmacy/Consultant Pharmacist Early: Ask about supplier risk, lead times, API sourcing, and manufacturing redundancy.
  • Monitor Inventory & Usage Trends Closely: Use analytics to spot early signs of trouble (e.g., usage spikes, supplier allocation changes).
  • Include Shortage Risk in Your Facility’s Medication Management Policy: Make “shortage readiness” part of your routine risk and quality management.
  • Train Staff on Alternatives & Safe Transitions: Make sure clinical teams are aware of alternative medications, dosing, monitoring, and documentation when standard drugs are unavailable.
  • Stay Abreast of Regulatory & Policy Shifts: Changes in manufacturing regulation, FDA action, or global supply chain disruptions can propagate quickly — your consultant pharmacist should monitor and interpret these for you.

Conclusion

Drug shortages are no longer exceptional events — they are embedded in our current healthcare ecosystem. The underlying drivers range from manufacturing fragility and supply chain exposure, through weak market incentives for older generics, to demand surges and regulatory pressures.

For ASCs, understanding these dynamics empowers your facility to shift from reactive to proactive. By anticipating risk, building redundancy, and aligning your medication management practices with supply-chain realities, you’ll be better positioned to maintain procedural continuity, patient safety, and operational resilience.

At OctariusRx, we partner with ASCs to assess supply-chain and formulary vulnerability, develop shortage-mitigation protocols, train staff on alternatives, and integrate supply-risk management into everyday operations. If you’d like assistance assessing your facility’s medication supply risk or optimizing your inventory strategy, let’s connect.


The Consultant Pharmacists at OctariusRx provide guidance on safe medication management, survey readiness and cost savings to ambulatory healthcare facilities/surgery centerssenior care facilities and pharmacies . We also help individual patients optimize their medications to improve their quality of life and save money. Contact us for assistance.


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