Currently, there are around 300 hospitals involved in the group to start the revolution in the drug business, with more hospitals expected to join.
The news-and furor-follows years of headlines, scandals, and congressional hearings over certain drug companies dramatically raising the prices of generic drugs and creating frustrating shortages.
The new company will provide an alternative to products now made by generic manufacturers "whose capricious and unfair pricing practices are damaging the generic drug market and hurting consumers", according to the joint statement released Thursday morning.
Ascension and SSM Health are teaming up with Intermountain Healthcare and Trinity Health. Endo International PLC's shares dropped more than 6 percent, Teva Pharmaceutical Industries Ltd's US shares fell 2.3 percent and Mylan NV's shares were down around 1 percent after the hospitals' plans were announced.
"Dr. Marc Harrison, chief of Utah-based, during an interview on CNBC's ", would not identify the existing drugs that the new company wants to replicate on its own, or have done on a contract basis.
Winter storm unloads snow and ice on South, heads for Northeast
Since Tuesday evening, North Carolina troopers had responded to 3,500 calls, including 2,000 collisions, he said. In Louisiana, state officials said both lanes of Interstate 49 in the Shreveport area were closed early Tuesday.
Once the generic drugs are made, the health systems that are part of this group will need to purchase the medications to use in their hospitals, which could give the health systems a lot of power over the generic drug industry. Those include high startup costs and the difficulty in predicting shortages of particular generic drugs and getting new versions approved in time to ease shortages. "This is a shot across the bow of the bad guys", he said.
The group is not disclosing what specific medicines it will make out of fear that generic competitors could block them from the market by lowering prices temporarily.
"We worked hard to come up with a plan ... now is the time to get to work".
"We hope it sends a signal", Liljenquist said, "enough for some to say they're being unreasonable". "But health care systems are in the best position to fix the problems in the generic drug market".
"We're only interested in those organizations that are creating shortages and driving drug prices up in an irrational fashion", Harrison said. "We think that just maybe this could be something that could benefit society for a very long time, and we certainly intend to do our best to make that so".