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publication | BRG Healthcare Transactions & Strategy

Specialty Drug Prices: An Analysis of Savings Opportunities for Physician-Administered Drugs

September 2024
Summary:

John Barkett and Gregory Johnson show the savings potential from ambulatory infusion centers and community-based drug administration and highlight reasons to be wary of white-bagging.

Intelligence That Works

Ambulatory infusion centers (AICs) and community-based physicians charge significantly less than hospital outpatient departments (HOPDs) for physician-administered drugs.  Commercial insurers can spend less on physician-administered drugs by encouraging, where clinically appropriate, the use of AICs and community-based physicians’ offices in place of HOPDs as a site of service for physician-administered drugs.

John Barkett and Gregory Johnson show the savings potential from AIC and community-based drug administration and highlight reasons patients and purchasers should be wary of white-bagging, a practice where specialty pharmacies supply physician-administered drugs, as a cost-containment solution.

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