Each year brings new challenges for independent community pharmacies to overcome.
As 2016 draws to an end, it’s time to consider—and prepare for—what the New Year may bring.
Mohamed Jalloh, spokesperson for the American Pharmacists Association (APhA), chatted with us about the challenges your pharmacy can expect to face in 2017.
A look back at 2016
This past year, financial concerns were plaguing independent pharmacies.
Direct and indirect remuneration (DIR) fees were a big problem. Pharmacy benefit managers (PBMs) retroactively impose DIR fees on pharmacies, making it difficult—if not impossible—for pharmacies to know what their true reimbursements will be.
“I suspect that they will still be a problem in 2017, especially since there may be fewer PBMs due to mergers,” Jalloh said.
Along with DIR fees, PBM transparency in general was an issue in 2016.
“Various PBM consolidations have decreased the selection of PBMs that pharmacies can work with,” Jalloh said. “This is troubling since it makes it difficult for pharmacies to have options for receiving payments. Also, PBMs don’t have the best transparency regarding generic drug payment methodology. Pharmacies may not be getting the most economic deal.”
Jalloh expects this past year’s challenges to continue into 2017. “I see achieving higher PBM reimbursements and working to maintain financial leverage and stability, despite various PBM consolidations, as one of the biggest challenges independent pharmacies will face in 2017,” he said.
Advice for the upcoming year
With reimbursement struggles continuing into the upcoming year, Jalloh recommends pharmacies combat these concerns by expanding their service offerings.
“Independent pharmacies have unique challenges ahead, however I suspect that if they expand their dispensing services to other sites or locations (e.g. medication packaging for long term care facilities), create disease specific clinics (e.g. HIV medication review clinics) and conduct reimbursable medication therapy management (MTM) services, they can continue to compete with the larger pharmacies,” he said.
Jalloh said pharmacies can prepare for these challenges by meeting with their legislative representatives and advocating for change.
For example, he suggests independent pharmacists ask their legislative representatives to support H.R. 244, the “MAC Transparency Act” to ensure that independent pharmacies are reimbursed appropriately and on a timely basis.
By the numbers
Prepare your pharmacy for the challenges ahead by expanding your service offerings. Consider these popular services other independent pharmacies are providing.
83 – Percent of pharmacies provide medication therapy management (MTM) services
68 – Percent of pharmacies do immunizations
60 – Percent of pharmacies offer online refills for patients
59 – Percent of pharmacies provide blood pressure monitoring
41 – Percent of pharmacies provide pet medications
Source: 2016 NCPA Digest, The National Community Pharmacists Association (NCPA)
