The Only Rx for Drug Shortages Is Competition

Commentary Price controls lead to shortages. This axiom is as dependable and scientifically absolute as the law of gravity. And it is the case even when the controls are elaborately disguised. So, when the U.S. Federal Trade Commission (FTC) reacts to the shortages suffered in the aftermath of the COVID-19 lockdowns of vital hospital drugs, including those used in chemotherapy like Methotrexate and fludarabine, by launching a probe of distribution companies, it’s like the Federal Aviation Administration searching for ways of blaming the ground for getting in the way of the jetliner that crashed. To FTC Chairwoman Lina Khan, the solution of shortages is a government investigation that “scrutinizes the practices of opaque drug middlemen.” Presumably, the distribution firms under scrutiny will be Cardinal Health, Cencora, and McKesson, while the collective hospital purchasing firms in the federal viewfinder are likely HealthTrust, Premier, and Vizient....