Hospital executives are fed up with drug companies, having seen how price hikes and shortages for generic drugs negatively impact patients. Four major hospital systems announced plans to form a nonprofit to provide generic drugs to hospitals to eliminate these kinds of drug shortages and future price spikes. Will it work? Ernst Berndt, Professor of Applied Economics at the MIT Sloan School of Management, thinks it’s a very laudable and worthy goal, but goes into detail about some of the challenges and obstacle they will inevitably face.

MIT Sloan Experts Blog: http://mitsloanexperts.mit.edu/hospit...
Ernst Berndt Biography: http://mitsloan.mit.edu/faculty-and-r...