Value-based payment, consolidation threaten LTC pharmacies, report claims
The shift to value based payment models, drug repackaging restrictions and consolidations are among the biggest concerns for the long-term care pharmacy sector, according to report released Thursday by research firm Avalere Health and the Senior Care Pharmacy Coalition.
“Long-Term Care Pharmacy: the Evolving Marketplace and Emerging Policy Issues” is the first in-depth analysis for the LTC pharmacy sector since 2004, SCPC President and CEO Alan Rosenbloom told McKnight’s.
The shift to value-based purchasing systems will put pressure on LTC pharmacies, as the facilities they serve are expected to meet stricter cost and quality objectives. Facilities will gravitate towards pharmacies that can provide the best medication management services to help them meet their quality goals, report authors note.
Consolidation across the LTC pharmacy sector also may put strain on skilled nursing facilities, the report warns.
“If there are only two or three monolithic pharmacies out there, what it is likely to do is put a lot of pressure on nursing homes to have to pay more for their drugs than if there is a more competitive market place,” Rosenbloom said.
The report also details the constraints placed on pharmacies when it comes to repackaging drugs into emergency kits. The Food and Drug Administration’s recently released guidance on repacking drugs could place limits on a pharmacy’s ability to put medications into special packages, like emergency medical kits. While the guidance is still in draft phase, enforcement of the limits as they are now could mean pharmacies would no longer be able to provide emergency medication kits to nursing homes, Rosebloom warned.
He added that while many LTC pharmacies are owned and operated by mid-sized provider companies, the contents of the report should be useful for all skilled nursing facilities.
To read the full report, click here.
Click here to see the original article on the McKnight’s website.
Recent Posts
-
SCPC Releases Statement in Support of Government Accountability Office (GAO) Report on the Inflation Reduction Act
SCPC has repeatedly warned about the impact of the Inflation Reduction Act’s (IRA) mandatory Medicare drug price negotiations on LTC pharmacies and the millions of vulnerable seniors they serve. We are glad the Government Accountability Office (GAO) is examining how these policies are affecting pharmacies, particularly LTC pharmacies, which already operate under a broken reimbursement model that often requires them to dispense many of the most commonly used medications at a loss.
-
SCPC Applauds President Trump’s Executive Order Calling on HHS and Congress to Improve the IRA, Rein In PBMs and Lower Drug Costs
The Senior Care Pharmacy Coalition (SCPC), the leading national voice for the long-term care (LTC) pharmacy community, released the following statement applauding President Trump’s recent Executive Order aimed at improving the Inflation Reduction Act (IRA), lowering drug prices and addressing the harmful actions of PBMs. “For far too long, pharmacy benefit managers (PBMs) have taken […]
-
60 percent of LTC pharmacies warn of closure amid major drug pricing changes
Facing deep losses on high-demand medications, 85% of long-term care pharmacies say they will limit essential services and 60% will close locations without changes to Medicare drug pricing efforts. Those are among the “unintended consequences” revealed in a Senior Care Pharmacy Coalition survey released Wednesday. The trade association has been increasingly vocal about pricing changes set to go into effect in January.
Stay in the Know
Get the latest news and updates on issues impacting the long-term pharmacy community.