Deciding how to setup pricing tables in any pharmacy environment can be challenging. A pharmacy owner and/or pharmacy manager has to balance how much to charge for goods and services with insurance contracts, Medicaid reimbursement rates, competition and the pharmacy’s bottom line.
A pharmacy needs to consider which basis to use for drug pricing. Is Average Wholesale Price (AWP), Wholesale Acquisition Cost (WAC), the National Average Drug Acquisition Cost (NADAC), or Spread Pricing appropriate for the specific and unique situation of the pharmacy? Perhaps a combination of the above is more appropriate.
As an independent Long-Term Care (LTC) pharmacy, a retail pharmacy or a combo-store, do you have the time needed to dedicate to this crucial task? Or do you find it daunting to keep up with the constant pricing updates? Do you subscribe to a reimbursement monitoring service to only find out that it takes a lot of your time to review and analyze their reports?
A successful pharmacy will be able to automate some of these tasks. However, not having the right processes in place may end up costing you not just money but also valuable time.
Where to seek assistance?
Some resources which may be available in assisting a busy and growing pharmacy in setting up pricing tables include:
- Group Purchasing Organization (GPO) – A GPO may offer general guidance on the best way to implement a pricing strategy.
- Pharmacy Software Vendor – The pharmacy software vendor will ensure that pricing updates are loaded routinely to your system.
- Pharmacy Business Consultant – A pharmacy business consultant will provide a pricing strategy customized to your unique needs, assist with its implementation and evaluate its outcomes.
At Progressive Healthcare Solutions we free you to be a pharmacist. Our tools are customizable and adaptable to fit each client’s budget and workflow. For more information and a complimentary initial consultation contact us at info@PHCSLN.com.
