Moving Medicine
The people who power healthcare across America
How healthcare distributors deliver more than 10 million
lifesaving medicines and healthcare products each day
Behind America’s healthcare supply chain is a vast network of healthcare distributors, with skilled employees across all 50 states and facilities from coast to coast.
Distributors work around the clock to connect medicines and healthcare supplies to providers and patients — all while operating on the narrowest profit margins in the industry.
WHAT YOU NEED TO KNOW:
The role of healthcare distributors
Healthcare distributors have many roles. They are logistics experts, information management specialists and constant innovators.
They connect global and domestic pharmaceutical manufacturers to care facilities around the U.S. — from the largest hospitals to small, rural pharmacies that are sometimes the only source of patient care in the area.
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HOW IT'S DONE:
Keeping the healthcare supply chain moving
Distributors connect 1,400 manufacturers to 450,000 healthcare providers, pharmacies and other sites of care.
Without distributors, hundreds of thousands of providers would have to coordinate directly with manufacturers — ultimately taking valuable time away from patient care.
What you’re missing: Distributors are always ready to answer the call. They not only connect the healthcare supply chain, but they also work to ensure patients get what they need — even when there are shortages or supply challenges.
Distributors regularly monitor spikes in demand or decreases in product availability and proactively communicate with manufacturers, industry partners and regulators.
When a pharmacy or hospital needs to find an alternative therapy for a medicine shortage, they reach out to their distributor and collaborate on how to minimize patient impact.
See how distributors keep the healthcare supply chain moving
Step 1:
Distributors buy medicines directly from hundreds of manufacturers, taking legal ownership, financial responsibility and physical possession of medicines.
Step 2:
Distributors inventory and store the products in sophisticated distribution centers.
Step 3:
Pharmacies, hospitals and doctors’ offices place orders with distributors for a range of products. Orders come in as late as 8pm for next-day deliveries.
Step 4:
Distribution center employees — with assistance from automated technologies that optimize efficiency — pick, pack and
ship products to sites of care.
THE BENEFITS:
Healthcare's movers and savers
Distributors save the U.S. healthcare system billions of dollars annually by:
● Consolidating orders from multiple manufacturers.
● Providing operational efficiency.
● Leveraging logistics expertise.
● Deploying advanced technology.
Yet distributors operate on one of the narrowest profit margins in the healthcare supply chain — at just 0.2% in 2024.
Here’s what else: They play no role in determining the amount patients pay for medicines, which medicines are included on formularies, benefit design decisions and reimbursement rates for dispensing pharmacies. Less than one penny of every dollar spent on brand medicines goes toward distributor services.
In 2023, total spending on brand medicines was $670.4 billion. The wholesaler margin was $5.7 billion — representing only 0.8% of all spending.
KEY NUMBERS:
Millions of medicines on the move
See the impact healthcare distributors make across the medicine supply chain.
is saved each year in the healthcare system because
of distributors’ work.
$78 billion
independent pharmacies across the country are supported by distributors.
20,000
sites of care are connected
to 1,400 manufacturers,
thanks to distributors.
450,000
are served by a network
of distributors.
50 states
medicines get delivered to patients and providers daily.
10.5 million
THE TAKEAWAY:
Connecting care to patients
Healthcare distributors keep medicine moving and care within reach — no matter what part of the country you’re in.
From warehouse floors to temperature-controlled trucks, their tireless work supports providers, stocks pharmacies and ultimately ensures patients get the care they need.
What you need to know:
Less than one penny of every dollar spent
on brand medicines goes toward distributor services.
In 2023, total spending on brand medicines was $670.4 billion. The wholesaler margin was $5.7 billion — representing only 0.8% of all spending.
of Healthcare Distribution Alliance supporting distributors.
149 years
See our impact
$670.4 billion
was spent on brand
medicines in 2023
$5.7 billion
was dedicated to the wholesaler margin, representing less than 1% of total spending
Less than 1% of all money spent on brand medicines went to the wholesaler margin in 2023.
The role of healthcare distributors
reaches far beyond delivery. They:
Oversee contracts and chargeback reconciliation.
Implement security measures.
Leverage technology and data analytics.
Handle administrative duties.
Deliver medicines and healthcare supplies to sites of care.
Pick, pack and ship medicines.
Manage warehouse operations.
Buy medications and healthcare supplies.
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