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Health Law Blog

This blog is devoted to current legal and regulatory issues affecting health care providers in New York, New Jersey and nationally. We regularly publish on topics of interest to doctors, pharmacists, hospital administrators, and everyone who is interested in the current developments in the legal landscape affecting health care delivery today.

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Pharmacy Practice

Subcategories from this category: Pharmacy News
16
Apr
0

NY Is Intensifying Efforts to Fight Prescription Drugs Abuse

Posted by on in Pharmacy Practice
stock-photo-17807685-several-prescription-pill-bottles-in-a-pile
New York lawmakers and law enforcement agencies are intensifying their efforts to stem the rampant abuse of prescription drugs.  Currently, there are several major initiatives under consideration that are bound to make a dramatic impact on pharmacy operations.

The statistics on opioids and tranquilizers abuse is truly alarming.  According to CDC, in 2010, about 12 million Americans (age 12 or older) reported non-medical use of prescription painkillers in the past year.  Prescription painkiller overdoses killed nearly 15,000 people in the US in 2008. This is more than 3 times the 4,000 people killed by these drugs in 1999.  Nationwide, pharmacies received and ultimately dispensed the equivalent of 69 tons of pure oxycodone and 42 tons of pure hydrocodone in 2010, a dramatic rise over the previous decade, according to Drug Enforcement Administration data.  New York prescriptions for narcotics rose from 16.6 million in 2007 to nearly 22.5 million in 2010.  A large percentage of all emergency room visits involves non-medical uses of prescription opioids and tranquilizers.

In January 2012, the office of the New York Attorney General Eric Schneiderman issued a report on an epidemic in Americans' abuse of painkillers and introduced legislation to establish what he called the Internet System for Tracking Over-Prescribing, or I-STOP. That would require the state Department of Health to establish a computer reporting system where doctors and other care providers would have to review a patient's complete prescription drug history online before writing new scrips for painkillers. Pharmacists would have to check the same system to confirm all such prescriptions are legitimate before filling them.  Many states currently operate similar systems and report a significant decrease in doctor shopping and otherwise high levels of satisfaction with the program.  

Similar real-time systems have successfully operated in other states for many years.  New York regulations now require practitioners, including dentists, to report prescriptions they write monthly to the health department.  The new system would require real time reporting and tracking. 

Other measures include a recently passed senate bill, S5880, to reclassify hydrocodone, sold as Vicodin, Norco and Lortab, to Schedule II. That would require a new prescription each time, with no refills. The same bill reclassifies Tramadol as a Schedule III controlled substance.  The bill has passed the NY Senate and Assembly and is expected to be signed into law.

Another bill passed by the Senate would increase criminal penalties for physicians and pharmacists who illegally divert, prescribe or dispense prescription drugs. That would make the crime a felony with sentences up to 25 years.

While the new measures will add extra some steps that pharmacies will have to take when dispensing prescription controlled substances, the benefits will certainly outweigh it.  Aside from the obvious anticipated reduction in doctor shopping, the new monitoring system will likely put an end to civil lawsuits against doctors and pharmacies in which plaintiffs alleged that prescribers and pharmacies allowed addicted individuals to feed their addiction by uncontrolled dispensing and prescribing of addictive painkillers.  Reviewing the database and detecting patterns of abuse will prevent pharmacies from being the targets of the DEA civil and criminal enforcement actions.  Moreover, many pharmacies, out of fear of civil and criminal penalties and lawsuits, have stopped stocking Schedule II drugs, and are turning away legitimate patients.  Having access to real-time database will allow pharmacies to get a reliable perspective on whether the patients seek controlled substances for legitimate purposes.  This will make business sense.

The implementation of the database, however, will potentially raise some concerns.  To permit a pharmacy to dispense controlled drugs, the prescription will have to have been logged into the system.  For instance, we envision a situation when a dental patient, following an emergency procedure, turns to a nearby pharmacy for a painkiller just to learn that the dentist has not yet logged the prescription into the system to allow the pharmacy to dispense the medication.  Inevitable errors and discrepancies occasioned by data entry will also require further verification steps by pharmacies.

We believe however that the implementation of the database will be a positive development for pharmacies, physicians and legitimate patients.  We belive that even better results can be achieved by a more widespread use of e-prescribing (with real-time reporting to the I-STOP database) as well as by the implementation of a national drug monitoring database.
Tagged in: Pharmacy Prescription
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09
Apr
0

Medco-Express Scripts Merger: What It Means for Your Pharmacy

Posted by on in Pharmacy Practice
6c025d9b-4efe-4348-a1d5-0f3b178b4ee8 463x347Like many independent pharmacy operators, you have probably been following the news of the proposed $29.1 billion merger between Medco and Express Scripts.  It is now official: FTC has granted its approval of the deal.  The merger creates the largest PBM in the nation with the combined market share of 32%.  This is what it means for your store:

1.  Possibly lower reimbursement ratesOne of the purposes of the merger is to lower costs by forcing even lower reimbursements upon pharmacies.  Clearly, no independent pharmacy can afford to lose access to a PBM of this importance.  The combined PBM will be practically immune from competition and will be able to not only lower reimbursement rates, but to set trends for other PBMs to follow.  Although reimbursement rates may not fall immediately due to multi-year contracts, they will probably trend downward in the years to come. 

2.  More mail-order, less patient choiceThe merger creates the third-largest pharmacy operator in the nation, just behind CVS-Caremark and Walgreens--and all of its business is mail-order!  By combining its dominant position in the PBM market with the desire to strengthen its mail-order business, it is expected that Medco-Express Scripts will require more patients to use their mail-order services.  This will undoubtedly take away even more business from independents.

3.  Walgreens will again accept Express Scripts
Many independents benefited from Walgreens' decision not to accept Express Scripts.  This is, however, likely to change.  Walgreens will probably not want to jeopardise its relationships with Medc,o and is expected to begin accepting Express Scripts, which will be part of the newly-merged PBM.

4.  The new PBM's domination in the specialty drugs market
The newly-merged PBM will have a particularly strong position in the high-priced specialty drugs market.  This is where the push to use Medco-Express Scripts mail-order might be felt the hardest.  Reimbursements for these scripts are also likely to trend lower.  

5.  Future mergers likelyWith this merger successfully approved by the FTC, similar deals are expected in the future, leading up to further consolidation and less competition in the PBM market.

What can you do?Many pharmacy organizations and politicians have expressed their concerns about this merger.  You can visit http://www.toobigtoplayfair.com/ and http://preservingcommunitypharmacy.com/ to add your voice to those who rightly fear that the merger will stiffen competition, hurt independent pharmacies and patients.  Lawsuits are being filed across the nation to attempt to undo this merger. 

Share this and forward it to your friends in the industry.  It is not too late to act.
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09
Feb
0

NY legislature is considering a law requiring drug pedigree

Posted by on in Pharmacy Practice

New York legislature is currently considering a law that would require all participants in the pharmaceutical delivery process, from manufacturers to dispensing pharmacies, to maintain a pedigree of all prescription medications.  The bill appears to be aimed at the proliferation of counterfeit or diverted medications on the pharmaceutical market.  The bill is significant in that it applies to pharmacies and requires them to notify the relevant authorities every time they have a suspicion that medications are counterfeit or diverted, or face harsh penalties.

The bill's proposed effective date, as drafted, is 2016-2017.

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