IRVING, Texas (BUSINESS WIRE), December 11, 2020 - Vizient, Inc. called for the Centers for Medicare and Medicaid Services (CMS) to delay the start of the recently finalized Most Favored Nation (MFN) Model for certain physician-administered drugs. Under the MFN Model, hospitals and certain other health care providers will have their Medicare reimbursement for 50 selected prescription drugs reduced to a rate derived from the lowest amount paid by a comparable foreign nation beginning Jan. 1.

The MFN Model Interim Final Rule was finalized using an abbreviated regulatory process that, among other concerns, neglected the essential preparation time needed to adopt the new practices required by the rule. While Vizient continues to analyze the rule, our letter to CMS urges the agency to delay the start of its implementation and notes that the rule will ultimately cut reimbursements to providers instead of impacting the true cost of prescription drugs. This is particularly important as hospitals and health care providers continue to be stretched thin by the COVID-19 pandemic.

“Vizient recognizes the importance of addressing high drug prices to protect patients from unnecessary financial barriers to care. However, rushing to implement this complex new policy during a global pandemic is problematic. The model, as currently designed, is primarily structured as a payment cut for hospitals and health care providers and will not have any immediate impact on drug prices,” said Dan Kistner, PharmD, group senior vice president, Pharmacy Solutions for Vizient. “CMS should act now to provide the needed time and clarity before implementing this complex model so that hospitals and suppliers can adequately prepare for this significant change.”

Vizient intends to submit more detailed comments on the broader implications of the policy but urges CMS to, at the very least, delay the Jan. 1 start date of the MFN model.

About Vizient, Inc.

Vizient, Inc. provides solutions and services that improve the delivery of high-value care by aligning cost, quality and market performance for more than 50% of the nation’s acute care providers, which includes 95% of the nation’s academic medical centers, and more than 20% of ambulatory care providers. Vizient provides expertise, analytics and advisory services, as well as a contract portfolio that represents more than $100 billion in annual purchasing volume, to improve patient outcomes and lower costs. Vizient has earned a World’s Most Ethical Company designation from the Ethisphere Institute every year since its inception. Headquartered in Irving, Texas, Vizient has offices throughout the United States. Learn more at


Donna Ledbetter
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