CHS Becomes First Health System to Purchase Drugs Manufactured by Cost Plus Drugs

Community Health Systems, Inc. (NYSE: CYH) (CHS) will become the first national healthcare system to purchase select pharmaceutical supplies from Mark Cuban Cost Plus Drug Company (Cost Plus Drugs) as part of a new, collaborative relationship that promises to bring high-quality, lower cost drugs into the hospital setting.

The onset of the partnership coincides with the opening of a state-of-the-art, 22,000-square-foot, fill and finish drug manufacturing plant, owned and operated by Cost Plus Drugs, in Dallas, Texas. The plant is equipped with aseptic robotic filling lines that produce lifesaving injectable medications.

Initially, CHS-affiliated hospitals in Texas and Pennsylvania will purchase pharmaceuticals such as epinephrine and norepinephrine, drugs that are often used to treat life threatening conditions and serious illnesses, especially in emergency departments and intensive care units. The Food and Drug Administration includes epinephrine on its list of current drug shortages due to increased demand and manufacturing delays.

CHS and Cost Plus Drugs will work collaboratively to address critically important issues related to drug supply in the hospital setting, including:

• Rising costs of pharmaceuticals – Cost Plus Drugs is committed to supplying drugs at a lower price point with minimal mark-up, which helps hospitals manage inflationary pressures as the cost of providing patient care continues to climb.
• Drug shortages – Cost Plus Drugs is focused on manufacturing drugs that are often in limited supply, threatening patient treatment and outcomes when shortages occur. CHS and Cost Plus Drugs are working together to identify, prepare for, and mitigate potential future drug shortages in the hospital setting.
• Pharmaceutical waste – Cost Plus Drugs offers CHS-affiliated hospitals more flexible ordering opportunities, including alternative vial sizes for drug administration, which can reduce waste and help hospitals order and maintain drug supplies in quantities that are most efficient for their unique needs and the specific services they offer.
• Patient safety and medication error prevention – Because Cost Plus Drugs will provide drugs in vial sizes that many other drug manufacturers won’t offer, there is less potential for dosage errors when drugs must be measured prior to administration at the bedside.

“There are many opportunities for innovation in the healthcare industry, including rethinking, and even disrupting, the way providers purchase products and services,” said Lynn Simon, MD, President of Healthcare Innovation and Chief Medical Officer at Community Health Systems. “Our relationship with Mark Cuban Cost Plus Drug Company has the potential to generate significant advantages for our affiliated hospitals and for other forward-looking hospital organizations that also want to reduce costs, reduce waste, avoid drug shortages, and improve patient care.”

With a footprint of more than 70-acute care hospitals and hundreds of other care locations, including ambulatory surgery centers, freestanding ERs, and physician practices, CHS and Cost Plus Drugs expect to scale the partnership in numerous and meaningful ways.

“Community Health Systems has stepped forward to consider important issues related to drug supply, drug costs, patient care and outcomes,” said Alex Oshmyansky, MD, PhD, Chief Executive Officer of Mark Cuban Cost Plus Drug Company. “This partnership has the potential to shine a light on all of the ways Cost Plus Drugs can work with like-minded providers to create a better approach to drug delivery in hospitals and in multiple care delivery environments.”

Commenting on the strategic partnership, Mark Cuban said, "We are excited to start shipping our first sterile injectables from our Cost Plus Factory. Our mission is to end drug shortages and this is just the first step. Our partnership with CHS will give them access to epinephrine and norepinephrine at a transparent cost plus price. This is the start of what we know will be an amazing partnership that will reduce drug shortages and drug costs and enhance the care CHS hospitals provide for their patients."

About Community Health Systems, Inc.

Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company’s affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 40 distinct markets across 15 states. The Company’s subsidiaries own or lease 71 affiliated hospitals with approximately 12,000 beds and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.

The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net.

About Mark Cuban Cost Plus Drug Company

The Mark Cuban Cost Plus Drug Company, PBC (Cost Plus Drugs) aims to fundamentally change the way the pharmaceutical industry operates. As a public-benefit corporation, its social mission of improving public health is just as important as the bottom line. Cost Plus Drugs transparently charges a standard markup on every drug it sells. Learn more at: mccpdc.com

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