There have been some interesting developments in generic budgets this year. Complaints about unexpected price spikes continue to abound; however, most facilities have established drug budgets that provide at least adequate coverage for these fluctuating drug prices. Perhaps most notable is that this year saw more facilities rate their generic price increases as average, while the number of facilities experiencing significant price inflation in their generic purchasing decreased. This was also the first year that a majority of facilities (51%) spent greater than 50% of their drug budget on generics. Looking forward, most facilities expect to continue expanding their budgets to support ongoing price increases for both generic and branded purchases.