NCPA Executive Update

NCPA Executive Update delivers insights on legislative, regulatory, policy, and industry developments from NCPA CEO B. Douglas Hoey, Pharmacist, MBA, to NCPA members and pharmacy leaders every Friday.

Getting Paid Differently | NCPA Executive Update | June 24, 2016

by NCPA | Jun 24, 2016

Dear Colleague,

Doug Hoey

Albert Einstein is credited with saying that the definition of insanity is doing the same thing over and over again, but expecting a different result. Admit it—we are all a little guilty of doing this from time to time. Have you been doing it in your pharmacy business, though?

I've written many times about how the health care payment system is evolving to one based on value for patient outcomes , and why it's more important than ever for community pharmacies to evolve their business model today to be more successful tomorrow. Despite our major concerns over some of the recent incentive programs (see last week's Executive Update "Penalty for Performance"), there's a shift of payments from solely profit per prescription to payments based on products dispensed, performance measures, and outcomes.

It's an important message that bears repeating: the most successful pharmacies are the ones that embrace this shift and take steps now to adopt a variety of clinical services valued by payers—in addition to their regular prescription business—to address gaps in care in their local communities. Collaboration agreements with local physician practices, chronic care management, transitions of care programs, and enhanced service networks are just some of the innovative ways community pharmacies are embracing the value-based model.

We know implementing these programs is no small task, let alone getting started in the first place, and what works for one pharmacy may not be the right fit for yours. That's why, after feedback from NCPA's steering committees and other pharmacy owner members, we have put together a new peer-to-peer educational program for pharmacy owners and staff pharmacists who want to take their businesses to the next step.

The Re-Engineering Your Pharmacy Practice Boot Camp (Aug. 12-13 in Alexandria, Va.), will take you from start to finish in this new process. You'll gain in-depth insights on how to optimize the dispensing process, collaborate with physician practices, streamline workflow, outline a financial plan to build an expanded services portfolio, use technology to document clinical encounters, and develop a brand to launch a new suite of services. We've also built in time for networking and idea sharing. Read the full program agenda here.

The best part? The program's speakers include some of the brightest minds in community pharmacy—pharmacists like you who have successfully implemented and are getting paid for expanded services opportunities in their own pharmacies and are willing to share their know-how with you. Boot Camp attendees will also have opportunities for ongoing interaction with the speakers after the program is over through a series of conference calls so they can continue to get advice and feedback while implementing changes in their pharmacy.

The opportunity for your pharmacy is there—are you ready to go for it? Come to our "Boot Camp" in August and find out, and bring a member of your team at a special discounted rate. For more information and to register for the program, visit www.ncpanet.org/reengineer or call 1-800-544-7447.

Best,
Doug Hoey

P.S. Earlier this week, NCPA had additional follow up communications with Humana that provided more details about its recent contract amendment received by many independent pharmacies. Two important components were confirmed to us—1) The pharmacy's performance will be measured based on eligible Humana Part D claims, and 2) The pharmacy's performance will be graded on a curve against its peers, e.g., the pharmacy must be in the 80th percentile or higher compared to other pharmacies in each of the three performance measures. NCPA sent this information and more to pharmacies today. Here it is again, just in case you missed it.