When Inside Medicine was founded eight years ago, our goal was to provide information and resources that can help Alabamans of all ages better understand their health. From navigating healthcare costs to dealing with chronic illness, Inside Medicine covers important issues that matter to patients, physicians, and the community. And these days, one of the most important issues to highlight the role of independent pharmacies.
Independent pharmacies are an important part of so many communities across Alabama and the country. These pharmacies are oftentimes the first stop for someone who has a health-related question. And in some instances, these pharmacies are the only place to receive healthcare for miles.
As any small business owner knows, it takes a lot of time, effort, and energy to keep their business running. In addition to serving their clientele, small business owners have various administrative tasks they need to do to operate. This is no different for independent pharmacists. But with rising costs and the increased strain on our healthcare system, there is less time to complete those critical administrative duties.
More than 80 percent of independent pharmacies utilize a pharmacy services administrative organization (PSAO) to support some of their administrative work. PSAOs offer a number of different services to pharmacists that allow them to focus on patient care. Some of these services include working on compliance and licensure oversight, negotiating pharmacy benefit managers (PBM) contracts for pharmacies, offering support on PBM-related administrative tasks, and much more.
What is particularly beneficial for independent pharmacists is the cost of working with PSAOs. These critical administrative services cost roughly $200 a month – a low cost that has a big impact. The support that independent pharmacists receive from PSAOs allows them to focus on taking care of their neighbors and running their business.
PSAOs support pharmacists, and in doing such, they don’t have any impact on the cost and availability of prescription drug prices. They also don’t negotiate drug prices or work on behalf of insurers. Many of these tasks are actually handled by PBMs. Instead, PSAOs work with pharmacists to navigate interactions with PBMs to ensure that the pharmacists and their business interests are considered.
With the cost of prescriptions and healthcare continuing to rise, the role of PSAOs and the support they provide to independent pharmacists has never been more important. PSAOs and the pharmacists represent work to manage the costs of prescriptions and negotiate with the PBMs that oftentimes drive up the cost of medications. PSAOs work hand in glove to make sure that independent pharmacists can focus on filling prescriptions, administering vaccines, and being a resource for any and all healthcare questions.
