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Bob Herman Jan 18
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Hospitals to launch generic drug company

Intermountain Medical Center in Utah
Intermountain Healthcare is taking the lead on starting a new generic drug company. Photo: Intermountain Healthcare

Four not-for-profit hospital systems that own 10% of U.S. hospitals — Intermountain Healthcare, Ascension, SSM Health and Trinity Health — are banding together to create a new generic drug company. The Department of Veterans Affairs also is helping and has expressed interest as a purchaser.

Why it matters: Generic drug makers will have a new competitive threat with this first-of-its-kind hospital venture. Marc Harrison, a doctor and the CEO of Intermountain, said drug shortages and high drug prices spurred this action.