PHILADELPHIA – Penn Medicine has partnered with Mark Cuban's Cost Plus Drug Company through its innovative Cost Plus Marketplace in a strategic alliance that will allow Penn Medicine to secure the top 100 most frequently dispensed generic drugs—such as antibiotics, cancer treatments, blood thinners, and asthma medications—from the company for the health system’s vast retail pharmacy network, which fills over 1.5 million prescriptions annually across 16 locations.
“As health systems face rising costs on many different fronts, we’re constantly looking for creative ways to be more cost-effective and simplify care delivery to meet the needs of our patients and care teams,” said Kevin B. Mahoney, chief executive officer of the University of Pennsylvania Health System. “Cost Plus is a new model that will eliminate unnecessary mark-ups on common generic medications and allow us to reinvest those savings in care innovations that are giving patients new choices and setting new standards for medicine.”
Launched in 2023 and powered by GraphiteRx, the Cost Plus Marketplace was developed to provide healthcare business purchasers with transparently priced medications. This partnership with Penn Medicine signifies one of the initial efforts to integrate this model with health systems nationwide, enhancing access to affordable medications.
Mark Cuban, co-founder of Cost Plus Drugs, stated, "This joint effort goes beyond cost savings—it's about empowering healthcare providers like Penn Medicine to deliver superior care by removing financial barriers to essential medications. We are thrilled to support Penn Medicine in setting a new benchmark for healthcare excellence."
Benefits of the drug-purchasing partnership within an integrated pharmacy system
Penn Medicine pharmacies are conveniently located inside all Penn Medicine hospitals and multi-specialty centers. For patients who fill their prescriptions through a Penn Medicine pharmacy, the process and experience will remain the same. Care teams will continue to send prescriptions directly to the patient’s preferred Penn Medicine pharmacy location. Though patients’ insurance coverage determines their out-of-pocket prescription costs, they are expected to see other benefits from the partnership. As shortages of generic drugs remain an issue across the country, for instance, Cost Plus’ model for could help ensure continued access during future shortages.
Filling prescriptions within Penn Medicine’s integrated pharmacy system allows for complete integration of drug information within patients’ electronic medical records and easy connectivity between providers and pharmacists who monitor for potential drug interactions. Penn Medicine’s pharmacists play other key roles across the health system, including working within care teams to advise on drug choices, help physicians manage complex regimens and make alternative choices when certain drugs are too risky for patients with serious illnesses, and providing education and financial assistance to patients and caregivers to help ensure they can afford and manage medications safely and conveniently at home.
“Our fully integrated pharmacy model is a key part of exceptional patient care: Our pharmacists work seamlessly with care teams to ensure that medication management is aligned with each patient’s unique needs,” said Nishaminy Kasbekar, BS, PharmD, Penn Medicine’s vice president and chief pharmacy officer. “This new partnership will further bolster our team’s efforts to define new ways for pharmacy to contribute to every aspect of our patient care mission.”
The new deal will also be a safer choice for the earth: aligned with the health system’s recently announced Climate and Sustainability Action Plan (CSAP) to become the nation’s most eco-friendly health care organization, the large purchasing agreement will help decrease carbon emissions through less shipping and packaging waste.
Penn Medicine is one of the world’s leading academic medical centers, dedicated to the related missions of medical education, biomedical research, excellence in patient care, and community service. The organization consists of the University of Pennsylvania Health System and Penn’s Raymond and Ruth Perelman School of Medicine, founded in 1765 as the nation’s first medical school.
The Perelman School of Medicine is consistently among the nation's top recipients of funding from the National Institutes of Health, with $550 million awarded in the 2022 fiscal year. Home to a proud history of “firsts” in medicine, Penn Medicine teams have pioneered discoveries and innovations that have shaped modern medicine, including recent breakthroughs such as CAR T cell therapy for cancer and the mRNA technology used in COVID-19 vaccines.
The University of Pennsylvania Health System’s patient care facilities stretch from the Susquehanna River in Pennsylvania to the New Jersey shore. These include the Hospital of the University of Pennsylvania, Penn Presbyterian Medical Center, Chester County Hospital, Lancaster General Health, Penn Medicine Princeton Health, and Pennsylvania Hospital—the nation’s first hospital, founded in 1751. Additional facilities and enterprises include Good Shepherd Penn Partners, Penn Medicine at Home, Lancaster Behavioral Health Hospital, and Princeton House Behavioral Health, among others.
Penn Medicine is an $11.1 billion enterprise powered by more than 49,000 talented faculty and staff.