Is the Health System Pharmacy in the Perfect Position to Change the Perception of Generic Drugs?

As Americans continue looking for ways to tighten their belts in the face of rising costs across the board, switching from a brand name medication to a generic one may not be at the top of their to-do list – but why? With many generic drugs having a potential cost of just 15% of a branded drug, choosing a generic alternative seems to be an appropriate move in some cases, yet many people hesitate to make the jump to generics. Oftentimes, it comes down to something as simple as perception, which may not reflect the reality of the value and efficacy of generics. The reality is that these drugs are bioequivalent to their branded counterparts and can help improve adherence, expand access, lower prescription costs, and more – positives for everyone from the patient and provider to the hospital itself. And few people know that reality better than the health system pharmacist – who is uniquely positioned at the intersection of clinical knowledge, operational strategy, and patient trust in rebranding this critical category of drugs for a collective benefit that can be felt throughout the healthcare ecosystem.

Beyond perception, there are four other important “P’s” to consider in the case of advocating for a wider adoption of generics in health systems and more broadly: Performance, Positioning, Price, and Partnership.

Performance

First is performance. Despite lingering skepticism among some patients and even prescribers, generic medications are subject to FDA reviews and approvals that ensure they have the same active ingredients, dosage form, strength, route of administration, and intended use as their corresponding branded drugs. For health system pharmacists, this is well understood – but for patients, performance reassurance often requires intentional communication and trust-building, which could be accomplished in part through availability as a simple first step.

Clinically, consistent utilization of generics can help support standardization of care – especially across often disparate service lines within the health system – and help to minimize unnecessary variation in prescribing practices.

Positioning

Next is positioning. How generics are positioned within a health system’s formulary can influence not only perceptions but also prescribing habits and overall utilization. Generics all too often are framed as cost-cutting concessions rather than first-line therapeutic options. Rewriting their profile as value-driven choices – backed by quality, data, and supply predictability – can help position generics as strategic assets within the health system’s broader clinical and financial strategy.

Not only that, but when health systems lead by positioning generics as preferred options in appropriate cases, their influence has the potential to extend far beyond the four walls of the hospital and to improve affordability and access at scale. Consider the findings from a study out of Japan, reporting that when a large hospital adopted a robust generics catalog within its formulary, generic prescription rates increased across the entire community.

Price

The economic advantage of generics is paramount, again, offering a potential savings of up to 85% compared with branded medications. According to the Association for Accessible Medicines, FDA-approved generics and biosimilars saved the U.S. healthcare system $445 billion in 2023 alone. For patients, these savings can translate to improved adherence and reduced financial burden. For health systems, savings from generic utilization can be redirected to fund innovation, workforce investments, expanded services, and community health initiatives. These price benefits are more likely to materialize, however, when patients feel confident in generics, prescribers choose them more often, and health systems have the operational strategy and supplier partnerships to ensure more reliable availability.

Partnership

Finally, there is partnership. Health systems need not navigate the complexities of generics alone. By partnering with a distributor that offers generics expertise, your health system can gain additional assurance on supply reliability, alternative product availability, and much more – giving your pharmacy leaders confidence that performance doesn’t need to be compromised in pursuit of cost savings or otherwise. As your trusted distributor, McKesson is here to offer our sourcing know-how, supply chain expertise, and a comprehensive array of advanced data and technology-based solutions to help your health system realize the full value of your generics catalog.

Generic drugs deserve a rebrand, and it can start with health systems

While patient perception is certainly one pillar of rebranding generics, the need to build a system-wide generics strategy that drives value across clinical, operational, and financial domains cannot be ignored – and the health system pharmacy can lead by example. Championing generics with patients, aligning with prescribers, and partnering with supply chain experts like our McKesson Health Systems Generics Team to maximize performance, positioning, and price has the potential for positive impact to all.

To learn more about partnering with McKesson to achieve more for the business of pharmacy and improve healthcare outcomes for all, contact us today.

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This document is intended for informational purposes only and does not constitute medical, legal, or financial advice. The views expressed herein are those of the speaker and do not necessarily reflect the official policy or position of McKesson Corporation or its affiliates. Any statements regarding operational, clinical, or financial outcomes are illustrative in nature and should not be interpreted as guarantees of performance or results.

All claims, whether express or implied, are subject to substantiation and should be evaluated in the context of applicable regulatory requirements..

References to partnerships, data analytics, or predictive modeling are general in nature and do not imply endorsement or certification by any regulatory authority. Readers are encouraged to consult with qualified professionals before making decisions based on the information provided.

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