FTC’s Interim Report on PBMs: Implications for Independent Pharmacies
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by Laisha Daley<br/>
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Laisha is the Chief Marketing Officer for InStockRx.<br/>
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If you are a Community Pharmacy Owner or Pharmacist in Charge looking for new strategies to improve your cash flow, this is for you.<br/>
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You may have thought the fireworks were over after Independence Day and the holiday weekend, but it seems they’ve only just begun.<br/>
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What has been hidden is now disclosed<br/>
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This week, the FTC released their interim report on their investigation into pharmacy benefit managers (PBMs). The report highlights the challenges with accessibility and affordability of medications for patients who need them, and the power they have wielded over independent pharmacies. Following that release, the Wall Street Journal reported that the FTC is preparing to sue the Big 3 PBMs over how they negotiate prices with pharmaceutical manufacturers. <br/>
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Federal Trade Commission Building in Washington, DC.<br/>
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For the independent pharmacy owner and operator though, the FTC report confirms what they have experienced and sensed all along – the squeeze on Main Street pharmacy was, and still is, very real. This report would be no surprise to the thousands of independent pharmacies that have closed since 2019. More than 3,500 independent drug stores have closed since 2019 according to a recent AP report. When looking at the root causes for those pharmacy closures, a top reason has been due to reduced or negative reimbursement rates from PBMs that take pharmacy owners into the red and can no longer sustain their operations. <br/>
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What it means for the future of Independent Pharmacy<br/>
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There is some effort by the PBMs to work with independent pharmacies, including a collaboration between ExpressScripts and CPESN USA to coordinate care delivery for seniors on Medicare with hypertension and diabetes. Aside from that, the pain is still felt by 19K+ independent pharmacies across the country like salt on an open wound. <br/>
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I empathize with independent pharmacy owners and operators who are trying to do the right thing for their patients, their staff, and contribute to their communities. While I am not a pharmacist, I have spent time with community pharmacy owners and pharmacists enough to know that they have incredible hearts for serving their patients. Which makes it heartbreaking to learn that nearly one-third of Americans reported rationing or skipping doses of their medication due to cost last year. <br/>
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A word of encouragement – control what you can control<br/>
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It may be a long road with what the FTC does next with the PBMs, what legal actions are taken and what the results of that process will be. It will take time to sort things out and the path forward. While those things are outside of our control, there are things that independent pharmacies can do NOW that is within their control, specifically, their inventory.<br/>
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Sharpen your skills on inventory management.<br/>
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We have a curated set or articles on strategies for understanding your inventory turn rate, approaches for dealing with expiring stock, and a guide for comparing pharmacy marketplaces.<br/>
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Liquidate surplus on a trusted marketplace.<br/>
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Do you have surplus inventory sitting on your shelves? Create a free account with InStockRx to participate in our marketplace and liquidate that inventory. Customers who have utilized our platform have seen positive results, for example, improving inventory turns from 11 to 15 in 90 days.<br/>
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Remember you’re not alone.<br/>
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There is strength in numbers. Use InStockRx to create your own custom pharmacy network. Collaborate between your peers to prevent deadstock, overstock, and expiring stock and always make sure you have the right medication on your pharmacy shelves. <br/>
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Get Started Today<br/>
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Are you ready to take control of your inventory and turn your overstock, deadstock or expiring stock into cashflow? Click here to get started with InStockRx today. <br/>
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by Laisha Daley<br/>
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Laisha is the Chief Marketing Officer for InStockRx.