South Dakota-based Sanford Health is one of 12 health systems that have newly signed on with Civica Rx, a nonprofit generic drug company that was launched by philanthropists and hospital groups last year.

The new health systems join Mayo Clinic and a number of large hospital groups across the country that created in September 2018 the new manufacturer in response to chronic shortages of certain key generic medications.

In a news release this week, Civica Rx said it expects to bring more than 14 hospital-administered generic drugs to hospitals and health care systems this year. The company says its in the process of becoming an FDA-approved manufacturer and will either make generic drugs itself or subcontract the work to other companies.

"Drug shortages have become a national crisis where patient treatments and surgeries are cancelled, delayed or suboptimal," said Martin VanTrieste, the chief executive of Civica Rx, in a statement. "We thank these organizations for joining us to make essential generic medicines accessible and affordable in hospitals across the country.

A Sanford Health spokesman said the health system in conjunction with the other 11 hospitals that joined this past week are investing $1 million and providing access to a $4 million capital loan.

For the fiscal year ending June 2018, Sanford Health posted operating income of $124.2 million on $4.64 billion in revenue.