How Hospital Pharmacies Are Tackling Rising Drug Costs

Despite drug costs projected to rise by 4% in 2025, hospital pharmacy teams are finding innovative ways to cut spending and strengthen supply chains.¹ Bluesight’s newly released 2025 Hospital Pharmacy Drug Purchasing Trends Report features insights from nearly 500 hospitals and highlights how technology solutions like predictive analytics and procurement optimization tools are helping health systems save over $100 million, manage supplier complexity, and anticipate drug shortages months in advance.

"Pharmacy departments are on the front lines of the financial pressures facing health systems," said Kevin MacDonald, CEO and cofounder of Bluesight, in a statement.¹ "This report shows how pharmacy teams are turning to automation, analytics, and integrated purchasing tools to bring costs down, maintain continuity of care, and deliver better outcomes under intense constraints."

Pharmacists are playing an increasingly vital role in hospital care, extending far beyond traditional dispensing duties. More than 75% of hospitals now assign pharmacists to inpatient units, and nearly 72% deploy them in outpatient clinics to help manage chronic conditions such as diabetes and hypertension, according to the American Society of Health-System Pharmacists’ 2024 National Survey of Pharmacy Practice.² Moreover, the pharmacist’s clinical involvement spans general medical-surgical units, critical care, oncology, cardiology, infectious disease, and emergency departments. As frontline members of the care team, pharmacists are driving improvements in medication management and patient outcomes, even amid persistent staffing shortages.

Similarly, Bluesight’s report reveals that pharmacy departments are playing a central role in managing rising drug costs and supply chain challenges.¹ Although drug costs are projected to increase by 4% in 2025, 77% of pharmacy teams are actively working to reduce spending.

The report also found that most hospitals rely on 4 to 6 suppliers, but nearly one-third juggle relationships with 12 or more, compounding supply chain complexity. Technology is playing a crucial role in addressing these challenges, with nearly 500 hospitals using Bluesight’s CostCheck tool, which has saved over $100 million through optimized National Drug Code recommendations, automated contract management, and Group Purchasing Organization and 340B optimization.

Furthermore, drug shortages remain a top concern, costing hospitals nearly $900 million annually in labor, with 75% of pharmacy leaders citing shortages as a top-three issue, according to the report. Predictive analytics tools like Bluesight’s ShortageCheck are helping health systems get ahead by alerting teams to potential shortages up to 90 days in advance, including 1 case where it predicted an acetaminophen shortage 64 days before the official notice.

A 2024 survey by Vizient highlighted the worsening crisis of drug shortages across US health care facilities, with pediatric settings hit especially hard.³ In the first quarter of 2024 alone, active shortages surged to a record 323, prompting hospitals to devote an estimated 20 million hours annually to shortage management. These shortages have not only overwhelmed pharmacy teams but have also led to increased medication errors, delayed procedures, and budget overruns in 74% of hospitals. Pediatric hospitals faced even greater burdens, with 79% reporting budget overages and nearly all making staffing changes to cope. The report also revealed a heavy reliance on costly secondary distributors and a growing demand for more proactive, data-driven solutions.

As hospitals navigate rising drug costs, complex supply chains, and escalating drug shortages, pharmacy departments are emerging as key drivers of financial management and clinical resilience. By leveraging predictive analytics, procurement automation, and integrated care models, hospital pharmacy teams are not only mitigating immediate pressures but also laying the foundation for a more efficient, data-driven, and patient-centered future in health care.

References

1. New Bluesight report details how hospitals are modernizing pharmacy purchasing. News release. Bluesight. August 6, 2025. Accessed August 6, 2025. https://www.prnewswire.com/news-releases/new-bluesight-report-details-how-hospitals-are-modernizing-pharmacy-purchasing-302522618.html

2. Steinzor P. Pharmacists expand frontline role in US hospitals, survey finds. AJMC^®. June 25, 2025. Accessed August 6, 2025. https://www.ajmc.com/view/pharmacists-expand-frontline-role-in-us-hospitals-survey-finds

3. Jeremias S. Report reveals mounting burdens of drug shortages on US health system. AJMC. June 27, 2025. Accessed August 6, 2025. https://www.ajmc.com/view/report-reveals-mounting-burdens-of-drug-shortages-on-us-health-system