October 28, 2021
ARLINGTON, Va. — Approximately 80 percent of independent retail and small chain pharmacies choose to use Pharmacy Services Administrative Organizations (PSAOs), as evidenced in a new white paper produced by Avalere Health.
The white paper, titled, “The Role of Pharmacy Services Administrative Organizations for Independent Retail and Small Chain Pharmacies,” describes the range of services PSAOs provide to pharmacies to help manage their administrative duties. With the support of PSAOs, pharmacies are able to concentrate on patient care — and even remain viable, especially in rural and underserved communities.
PSAOs are organizations that support independent and small chain pharmacies with their interactions, contract evaluation and execution, and communications with Pharmacy Benefit Managers (PBMs) and health plans. Independent pharmacies can leverage the knowledge and experience of PSAOs to streamline challenging processes that typically require subject matter expertise.
Based on findings from stakeholder interviews and a review of existing research, the report indicates that most independent pharmacies choose to contract with a PSAO. Further, independent pharmacy owners interviewed see these organizations as essential to operations, especially in an environment where many pharmacies are struggling with a lack of sufficient resources.
“The data included in this report strongly underscore the value PSAOs bring to the pharmacy community, and ultimately patients. These organizations make it possible for independent and small chain pharmacies of all sizes, notably those that are family-owned and may have limited resources, to keep up with rapidly evolving market dynamics. PSAOs provide support for complex reimbursement processes, as well as addressing environmental factors, such as responding to the COVID-19 pandemic and other public health emergencies,” said HDA Executive Vice President, Government Affairs, Patrick Kelly. “In short, PSAOs help thousands of pharmacists across the country manage administrative challenges so they can spend more time working with patients.”
Key insights and findings within the report include:
The full white paper is accessible here.
The Healthcare Distribution Alliance (HDA) represents primary pharmaceutical distributors — the vital link between the nation’s pharmaceutical manufacturers and pharmacies, hospitals, long-term care facilities, clinics and others nationwide. Since 1876, HDA has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. The HDA Research Foundation, HDA’s nonprofit charitable foundation, serves the healthcare industry by providing research and education focused on priority healthcare supply chain issues.
Avalere Health is an Inovalon company, a leading provider of cloud-based platforms empowering data-driven healthcare. We believe in the power of data, informing actionable insights, delivering meaningful impact, and driving stronger patient outcomes and business economics.