Diversion in Prescription Opioid Supply Chains: Evidence from the Drug Supply Chain Security Act

Published Online:https://doi.org/10.1287/msom.2023.0140

References

  • Adbi A, Chatterjee C, Mishra A (2022) How do MNEs and domestic firms respond locally to a global demand shock? Evidence from a pandemic. Management Sci. 68(12):9003–9025.LinkGoogle Scholar
  • Alpert A, Powell D, Pacula RL (2018) Supply-side drug policy in the presence of substitutes: Evidence from the introduction of abuse-deterrent opioids. Amer. Econom. J. Econom. Policy 10(4):1–35.CrossrefGoogle Scholar
  • Angrist J, Pischke J-S (2008) Mostly Harmless Econometrics: An Empiricists’ Companion (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Aung MM, Chang YS (2014) Traceability in a food supply chain: Safety and quality perspectives. Food Control 39(May):172–184.CrossrefGoogle Scholar
  • Babich V, Tang CS (2012) Product adulteration: Deferred payments, inspections, and combined mechanisms. Manufacturing Service Oper. Management 14(2):301–314.LinkGoogle Scholar
  • Betcheva L, Erhun F, Jiang H (2021) OM forum—Supply chain thinking in healthcare: Lessons and outlooks. Manufacturing Service Oper. Management 23(6):1333–1353.LinkGoogle Scholar
  • Blendon RJ, Benson JM (2018) The public and the opioid-abuse epidemic. New England J. Med. 378(5):407–411.CrossrefGoogle Scholar
  • Bo (2017) Pharma supply chain: Source or savior of the opioid crisis in America? Accessed October 20, 2022, https://digital.hbs.edu/platform-rctom/submission/pharma-supply-chain-source-or-savior-of-the-opioid-crisis-in-america/.Google Scholar
  • Bobroske K, Freeman M, Huan L, Cattrell A, Scholtes S (2021) Curbing the opioid epidemic at its root: The effect of provider discordance after opioid initiation. Management Sci. 68(3):2003–2015.LinkGoogle Scholar
  • Buchmueller TC, Carey C (2018) The effect of prescription drug monitoring programs on opioid utilization in Medicare. Amer. Econom. J. Econom. Policy 10(1):77–112.CrossrefGoogle Scholar
  • Burkart M, Ellingsen T (2004) In-kind finance: A theory of trade credit. Amer. Econom. Rev. 94(3):569–590.CrossrefGoogle Scholar
  • Chen L, Yao S, Zhu K (2020) Responsible sourcing under supplier-auditor collusion. Manufacturing Service Oper. Management 22(6):1234–1250.LinkGoogle Scholar
  • Cho S, Fang X, Tayur S (2015) Combating strategic counterfeiters in licit and illicit supply chains. Manufacturing Service Oper. Management 17(3):273–289.LinkGoogle Scholar
  • Chod J (2017) Inventory, risk shifting, and trade credit. Management Sci. 63(10):3207–3225.LinkGoogle Scholar
  • Chod J, Trichakis N, Tsoukalas G, Aspegren H, Weber M (2020) On the financing benefits of supply chain transparency and blockchain adoption. Management Sci. 66(10):4378–4396.LinkGoogle Scholar
  • Dart RC, Surratt HL, Cicero TJ, Parrino MW, Severtson G, Bucher-Bartelson B, Green JL (2015) Trends in opioid analgesic abuse and mortality in the United States. New England J. Med. 372(3):241–248.CrossrefGoogle Scholar
  • Dasgupta N, Freifeld C, Brownstein JS, Menone CM, Surratt HL, Poppish L, Green JL, Lavonas EJ, Dart RC (2013) Crowdsourcing black market prices for prescription opioids. J. Med. Internet Res. 15(8):e178.CrossrefGoogle Scholar
  • DEA (2018a) 2018 National drug threat assessment. Report DEADCT-DIR-032-18, DEA, Springfield, VA.Google Scholar
  • DEA (2018b) Fentanyl remains the most significant synthetic opioid threat and poses the greatest threat to the opioid user market in the United States. DEA Intelligence Brief DEA-DCT-DIB-003-18, DEA, Springfield, VA.Google Scholar
  • Elfenbein DW, Fisman R, McManus B (2023) The impact of socioeconomic and cultural differences on online trade. Management Sci. 69(10):6181–6201.LinkGoogle Scholar
  • Evans WN, Lieber EM, Power P (2019) How the reformulation of OxyContin ignited the heroin epidemic. Rev. Econom. Statist. 101(1):1–15.CrossrefGoogle Scholar
  • Fabbri D, Menichini AMC (2016) The commitment problem of secured lending. J. Financial Econom. 120(3):561–584.CrossrefGoogle Scholar
  • FDA (2014) DSCSA standards for the interoperable exchange of information for tracing of certain human, finished, prescription drugs: How to exchange product tracing information guidance for industry; draft guidance. https://www.regulations.gov/document/FDA-2014-D-1981-0002.Google Scholar
  • FDA (2019) Warning letter to McKesson Corporation headquarters. Report MARCS-CMS 565854, FDA, Silver Spring, MD.Google Scholar
  • Gong J, Greenwood BN, Song Y (2023) An empirical investigation of ridesharing and new vehicle purchase. Manufacturing Service Oper. Management 25(3):884–902.LinkGoogle Scholar
  • Government Accountability Office (2020) Drug control: Actions needed to ensure usefulness of data on suspicious opioid orders. Report GAO-20-118, GAO, Washington, DC.Google Scholar
  • Geynisman DM, Wong Y (2016) Drug Supply Chain Security Act and oral anticancer medications. Are we shortchanging our patients? JAMA Oncol. 2(3):295–296.CrossrefGoogle Scholar
  • Guo T, Sriram S, Manchanda P (2020) “Let the sunshine in”: The impact of industry payment disclosure on physician prescription behavior. Marketing Sci. 39(3):516–539.LinkGoogle Scholar
  • Hadland SE, Rivera-Aguirre A, Marshall BDL, Cerdá M (2019) Association of pharmaceutical industry marketing of opioid products with mortality from opioid-involved overdoses. JAMA Network Open 2(1):1–12.CrossrefGoogle Scholar
  • Hastig GM, Sodhi MS (2020) Blockchain for supply chain traceability: Business requirements and critical success factors. Production Oper. Management 29(4):935–954.CrossrefGoogle Scholar
  • Hedegaard H, Warner M, Minino AM (2017) Drug overdose deaths in the United States, 1999–2015. NCHS Data Brief (273):1–8.Google Scholar
  • Hendricks KB, Singhal VR (2005) Association between supply chain glitches and operating performance. Management Sci. 51(5):695–711.LinkGoogle Scholar
  • Hobb JE (2004) Information asymmetry and the role of traceability systems. Agribusiness 20(4):397–415.CrossrefGoogle Scholar
  • Hollingsworth A, Ruhm CJ, Simon K (2017) Macroeconomic conditions and opioid abuse. J. Health Econom. 56:222–233.CrossrefGoogle Scholar
  • Hsu G, Kovacs B (2021) Association between county level cannabis dispensary counts and opioid related mortality rates in the United States: Panel data study. BMJ 372:m4957.CrossrefGoogle Scholar
  • Huntington-Klein N (2022) The Effect. An Introduction to Research Design and Causality (Routledge, Abingdon, UK).Google Scholar
  • Inciardi JA, Surratt HL, Cierco TJ, Beard RA (2009a) Prescription opioid abuse and diversion in an urban community: The results of an ultra-rapid assessment. Pain Med. 10(3):537–548.CrossrefGoogle Scholar
  • Inciardi JA, Surratt HL, Kurtz SP, Burke JJ (2006) The diversion of prescription drugs by health care workers in Cincinnati, Ohio. Substance Use Misuse 41(2):255–264.CrossrefGoogle Scholar
  • Inciardi JA, Surratt HL, Lugo Y, Cicero TJ (2007) The diversion of prescription opioid analgesics. Law Enforcement Executive Forum 7(7):127–141.Google Scholar
  • Inciardi JA, Surratt HL, Cicero TJ, Kurtz SP, Martin SS, Parrino MW (2009b) The “black box” of prescription drug diversion. J. Addictive Diseases 28(4):332–347.CrossrefGoogle Scholar
  • Jalal H, Buchanich JM, Roberts MS, Balmert LC, Zhang K, Burke DS (2018) Changing dynamics of the drug overdose epidemic in the United States from 1979 through 2016. Science 361(6408):eaau1184.CrossrefGoogle Scholar
  • KC D, Kim TT, Liu J (2022) Electronic prescription monitoring and the opioid epidemic. Production Oper. Management 31:4057–4074.CrossrefGoogle Scholar
  • KFF (2018) Opioid overdose deaths by type of opioid. Kaiser Family Foundation. Accessed August 10, 2022, https://www.kff.org/other/state-indicator/opioid-overdose-deaths-by-type-of-opioid/.Google Scholar
  • Kuglin FA (2016) Pharmaceutical Supply Chain. Drug Quality and Security Act (Taylor & Francis Groups LLC, Boca Raton, FL). Google Scholar
  • Levi R, Singhvi S, Zheng Y (2020) Economically motivated adulteration in farming supply chains. Management Sci. 66(1):209–226.LinkGoogle Scholar
  • Liu J, Bharadwaj A (2020) Drug abuse and the internet: Evidence from Craigslist. Management Sci. 66(5):2040–2049.LinkGoogle Scholar
  • Mariano W (2016) How theft ring stole millions of drugs from Emory. Atlanta J.-Constitution (March 11), https://www.ajc.com/news/crime--law/how-theft-ring-stole-millions-drugs-from-emory/0GRb0SrS2KCxX85lJMTbxI/.Google Scholar
  • Mellewigt T, Hoetker G, Lütkewitte M (2018) Avoiding high opportunism is easy, achieving low opportunism is not: A QCA study on curbing opportunism in buyer–supplier relationships. Organ. Sci. 29(6):1208–1228.LinkGoogle Scholar
  • National Institute on Drug Abuse (2018) Prescription opioids and heroin research report. Accessed August 10, 2022, https://nida.nih.gov/publications/research-reports/prescription-opioids-heroin/introduction.Google Scholar
  • OIG (2019) Review of the Drug Enforcement Administration’s regulatory and enforcement efforts to control the diversion of opioids. Report, Evaluation and Inspections Division 19-05, OIG, Washington, DC.Google Scholar
  • Parker C, Ramdas K, Savva N (2016) Is IT enough? Evidence from a natural experiment in India’s agriculture markets. Management Sci. 62(9):2481–2503.LinkGoogle Scholar
  • Powell D, Pacula RL, Jacobson M (2018) Do medical marijuana laws reduce addictions and deaths related to pain killers? J. Health Econom. 58:29–42.CrossrefGoogle Scholar
  • Rigg KK, Kurtz SP, Surratt HL (2012) Patterns of prescription medication diversion among drug dealers. Drugs Ed. Prevention Policy 19(2):145–155.CrossrefGoogle Scholar
  • Rotunno R, Cesarotti V, Bellman A, Introna V, Benedetti M (2014) Impact of track and trace integration on pharmaceutical production systems. Internat. J. Engrg. Bus. Management 6(25):1–11.Google Scholar
  • Scholl L, Seth P, Kariisa M, Wilson N, Baldwin G (2019) Drug and opioid-involved overdose death-United States, 2013. Morbidity Mortality Weekly Rep. 67(2017):1419–1497.Google Scholar
  • Silva JS, Tenreyro S (2006) The log of gravity. Rev. Econom. Statist. 88(4):641–658.CrossrefGoogle Scholar
  • Silva JS, Tenreyro S (2011) Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator. Econom. Lett. 112(2):220–222.CrossrefGoogle Scholar
  • Simchi-Levi D, Trichakis N, Zhang PY (2019) Designing response supply chain against bioattacks. Oper. Res. 67(5):1246–1268.LinkGoogle Scholar
  • Sodhi MS, Tang C (2019) Research opportunities in supply chain transparency. Production Oper. Management 28(12):2946–2959.CrossrefGoogle Scholar
  • Sodhi MS, Son BG, Tang C (2012) Researchers’ perspectives on supply chain risk management. Production Oper. Management 21(1):1–13.CrossrefGoogle Scholar
  • Surratt HL, Grady CO, Kurtz SP, Stivers Y, Cicero TJ, Dart RC, Chen M (2014) Reductions in prescription opioid diversion following recent legislative interventions in Florida. Pharmacoepidemiology Drug Safety 23(3):314–320.CrossrefGoogle Scholar
  • Szabo L (2021) The ‘Grief Pandemic’ will torment Americans for years. KFF Health News (June 2), https://khn.org/news/article/covid-grief-pandemic-will-torment-americans-for-years/.Google Scholar
  • Tomlin B, Wang Y (2011) Operational strategies for managing supply chain disruption risk. Kouvelis P, Boyabatli O, Done L, Li R, eds. The Handbook of Integrated Risk Management in Global Supply Chains (John Wiley & Sons, Hoboken, NJ), 79–101.CrossrefGoogle Scholar
  • Trecki J (2019) A perspective regarding the current state of the opioid epidemic. JAMA Network Open 2(1):e187104.CrossrefGoogle Scholar
  • U.S. Congress (2013) Public Law 113-54: Drug Quality and Security Act. H.R.3204. Accessed August 10, 2022, https://www.congress.gov/113/plaws/publ54/PLAW-113publ54.pdf.Google Scholar
  • USP (2020) Increasing transparency in the medicines supply chain. Report EA845W_2020-07, USP, Frederick, MD.Google Scholar
  • Volkow ND, McLellan AT (2016) Opioid abuse in chronic pain—Misconceptions and mitigation strategies. New England J. Med. 374(13):1253–1263.CrossrefGoogle Scholar
  • Wen H, Hockenberry JM, Jeng PJ, Bao Y (2019) Prescription drug monitoring program mandates: Impact on opioid prescribing and related hospital use. Health Affairs 38(9):1550–1556.CrossrefGoogle Scholar
  • White House Council of Economic Advisers (2017) The underestimated cost of the opioid crisis. Accessed August 1, 2022, https://trumpwhitehouse.archives.gov/sites/whitehouse.gov/files/images/The%20Underestimated%20Cost%20of%20the%20Opioid%20Crisis.pdf.Google Scholar
  • Yurukoglu A, Liebman E, Ridle DB (2017) The role of government reimbursement in drug shortages. Amer. Econ. J. Econom. Policy 9(2):348–382.CrossrefGoogle Scholar
  • Zibbell JE, Aldridge AP, Cauchon D, DeFiore-Hyrmer J, Conway KP (2019) Association of law enforcement seizures of heroin, fentanyl, and carfentanil with opioid overdose deaths in Ohio, 2014-2017. JAMA Network Open 2(11):e1914666.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.