HealthTrust’s SIMS program ensures essential meds are there when needed
Pharmacy leaders are constantly navigating the challenges of securing cost savings while ensuring a stable supply of essential medicines. Drug shortages remain one of the biggest concerns in the industry, creating disruptions that can directly impact patient care.
HealthTrust’s Supply Interruption Mitigation Strategies (SIMS) program was designed to proactively address these challenges and in 2024, it grew significantly to provide even greater protection for our members.
Building a shield against shortages
The SIMS program was launched in 2019 to prevent, predict and mitigate drug shortages for HealthTrust members. Recognizing the increasing need for supply stability, HealthTrust expanded SIMS in 2024, adding more medications and strengthening partnerships with pharmaceutical manufacturers. What started as a member feedback-driven program covering just five drugs now includes over 75 medications; 20 more are expected in 2025.
“We depend on HealthTrust’s SIMS program to minimize disruption and help make sure we have the critical medications we need to treat patients,” says Jennifer Higdon, Assistant Vice President, Pharmacy Operations at HCA Healthcare.
By leveraging strategic, long-term contracts, SIMS creates stability and improves predictability around the supply of medications deemed critical to patient care. These include “never out” drugs, which are those essential for procedures in cardiology, oncology and critical care, where a shortage could have severe consequences.
A unique proposition
The SIMS program is built on a proactive, long-term approach to supply chain resilience. Instead of reacting to shortages, HealthTrust negotiates extended contracts with pharmaceutical manufacturers, ensuring both committed volumes and stable pricing.
Key components of the program include:
- Problem-solving Strategies – Collaborating with manufacturers to develop customized programs for mitigating shortages.
- Long-term Agreements – In contrast to the current contract cycle of three years, SIMS products may be contracted for up to five years.
- Committed Volumes – Our committed model and member performance allows manufacturers to invest in stable production capacity and demand planning. This predictability reduces level-setting for lower-margin products and provides partners with the volume guarantees needed to implement manufacturing strategies.
- Guaranteed Pricing – Ensuring stability in costs for lower-margin drugs, reducing market volatility.
- Dedicated Inventory – Suppliers hold additional buffer inventory dedicated to HealthTrust customers.
- Controlled Channel – In the event of a shortage, HealthTrust has the capability to move inventory to a channel for HealthTrust members.
Commitment & alignment matter
Unlike other shortage programs that typically achieve only 30–50% contract compliance, SIMS has demonstrated 80–85% compliance among participating members. This higher level of engagement not only secures supply availability but also leads to better pricing and greater overall resiliency.
“There is nothing worse than treating a patient and not having the medicine you need,” says Brian Moran, Vice President of Pharmacy at HealthTrust. “With HealthTrust’s purchasing power and aligned model, SIMS gives our members the assurance that critical medications will be available when they need them most.”
“Our program has found the sweet spot between market-leading pricing, but also pricing that is sustainable for the market,” explains Moran. “There’s a premium, sometimes, but that premium is generally minimum and always has a clear value proposition, which helps to create a more resilient supply chain.”
Looking ahead
As SIMS continues to expand, HealthTrust is committed to adding more medications and deepening supplier partnerships. In 2025, the program will primarily add IV medications used to treat critically ill patients such as those with cancer, some antibiotics and other meds administered in the OR during surgeries. This growth will further reinforce our members’ ability to navigate supply chain disruptions with confidence.
PUT SIMS TO WORK FOR YOUR ORGANIZATION. Learn more about the program and how it can strengthen your pharmacy supply strategy by reaching out to your HealthTrust Account Manager or by emailing askIHP@healthtrustpg.com
