Staying Ahead of Sterile Product Shortages: How Harris Health Strengthened Its 503B Outsourcing Strategy with Premier

Key Takeaways:

• Harris Health faced daily challenges due to a limited network of 503B suppliers, leading to frequent sterile injectable supply shortages.
• By utilizing Premier’s 503B outsourcing program, Harris Health expanded its supplier network, received advisory guidance and gained support for evaluating and selecting high quality suppliers while navigating 503B regulations.
• This strategic expansion has led to a more flexible and proactive approach to sterile product sourcing, reducing daily operational hurdles and ultimately enhancing patient care.

Sterile injectable supply shortages continue to challenge healthcare providers nationwide, forcing pharmacy teams to find alternatives on short notice. These shortages are more than just operational hurdles; they can directly impact patient care. Harris Health, a Houston, Texas-based health system, knows this challenge well.

Serving as the region’s safety-net provider, Harris Health operates two inpatient hospitals, including a Level I trauma center, more than a dozen outpatient clinics and a cancer infusion center. With a mission to care for some of the most vulnerable patient populations, maintaining a reliable supply of sterile products is critical.

As pharmacy leaders and teams are increasingly asked to do more with less, health system and hospital pharmacies with established 503B Outsourcing Facility relationships can be vital.

Navigating a Fragile Supply Chain

Since 2020, Harris Health’s pharmacy team frequently faced last-minute supply chain crises, struggling to secure essential medication.

“For a while, especially right after the COVID-19 pandemic, we were dealing with shortages every single day,” said Rodney Baty a Sterile Product Manager at Harris Health. “It was a daily struggle to determine if we could get necessary medications from our suppliers or if we needed to compound them ourselves.”

The situation became more complex when unexpected disruptions occurred, creating ripple effects across the industry. “When a major 503B supplier goes down, everyone rushes to the remaining ones,” said Baty. “If you don’t already have relationships with multiple 503Bs, you could be facing a four-week wait for critical medications.”

Harris Health needed a new approach, one that would make their sterile product sourcing more resilient, flexible and efficient.

Expanding Supplier Access with Premier’s 503B Outsourcing Program

To enhance supply chain resilience, Harris Health expanded its contracted 503B network from just a few suppliers to eight. This diversification ensured that if one supplier faced a disruption, alternatives were readily available.

A pivotal factor in this expansion was Premier’s 503B outsourcing program, which provides advisory guidance and offers a comprehensive portfolio of vetted 503B suppliers and contracted products.

“Premier’s supplier portfolio is a game-changer,” said Baty. “It gives us flexibility. If we hit a roadblock with one vendor, we have established relationships with others, so we’re not left scrambling.”

Streamlining 503B Evaluations to Save Time

Evaluating 503B outsourcing facilities is an essential but time-consuming task for hospitals, requiring site visits, quality data reviews and compliance checks. As Harris Health worked to formalize its own 503B site visit policy, Premier’s evaluation program became an indispensable resource.

“I used Premier’s evaluation process as a guideline when developing our internal 503B policy,” said Baty. “And if I can’t personally conduct a site visit, I trust Premier’s assessments. Their evaluations are robust, and I can rely on them.”

By leveraging Premier’s supplier vetting process, Harris Health has been able to save valuable time while maintaining confidence in supplier quality and compliance.

The Power of Peer Collaboration

Beyond product access, Harris Health has also benefited from Premier’s 503B Advisory Group, a member-led committee where health systems collaborate and share insights.

“A lot of us are facing the same issues, so being able to hear how another health system handled a problem is incredibly valuable,” said Baty. “The roundtable discussions give us new strategies to take back and apply at our own hospitals.”

Through its participation, Harris Health not only gains insights from other hospitals, but also helps shape Premier’s 503B outsourcing strategy, ensuring that the program continues evolving to meet real-world needs.

The Impact: A More Resilient and Efficient Approach

Since expanding its 503B outsourcing strategy with Premier’s support, Harris Health has built a more flexible and proactive approach to sterile product sourcing:

• Increased supplier diversity has led to fewer disruptions when shortages arise.
• Premier’s supplier evaluations save Harris Health time while ensuring quality and compliance.
• Collaboration with other health systems through participation in Premier’s 503B Advisory Group provides valuable problem-solving insights.

“From day one, I’ve been impressed with the work Premier is doing in this space,” said Baty. “The resources, the evaluations, the supplier access have all been invaluable. I’m glad to be part of it.”

For more:

• Is your health system ready for a stronger 503B outsourcing strategy? Learn more about how Premier’s 503B program can support your organization.

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