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Thursday, July 12, Our Exclusive Analysis: Nearly One in Three U. Our latest exclusive analysis finds that about 21, pharmacy locations now act as contract pharmacies for the hospitals and other healthcare providers that participate in the B program.
This growth is unsurprising. Does Congress really want the B program to provide outsize financial benefits to a handful of large, multi-billion-dollar, for-profit pharmacy chains? Should investors be concerned about how much pharmacies are earning from this embattled program? A covered entity can purchase and dispense B drugs through internal or external contract pharmacies.
Inthe Health Resources and Services Administration HRSA permitted eligible entities including those that have an in-house pharmacy to access B pricing through multiple contract pharmacies. The contract pharmacy process is complex and sometimes confusing. To follow the B dollar, see Section Pharmacies and Pharmacy Benefit Managers.
We screened out all contracts that had been terminated before that date. Using our proprietary database, we classified all contract pharmacy locations by parent organization. Most chains are listed with multiple alternate names. These multi-billion-dollar, for-profit corporations have dominated contract pharmacies for a few years now.
Nearly 7, Walgreens locations act as B contract pharmacies, so the chain accounts for more than one-third of all locations. Thousands of independent pharmacies and small chains participate, too. The chart below shows the growth in B participation for the three largest chains since our first analysis in In line with overall program growth, the largest chains have dramatically increased the number of locations acting as B contract pharmacies.
Often, these profits appear to come at the expense of low-income, uninsured patients. Pharmacies therefore have strong incentives to trade third-party prescriptions to covered entities in exchange for oversize fees. I outline some suggested policy changes in my previous post.
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