NCPA Cost-to-Dispense Study for LTC Pharmacy

NCPA's LTC Division and the NCPA Foundation have joined with Virginia Commonwealth University School of Pharmacy to conduct a cost-to-dispense research study for closed-door LTC pharmacies. NCPA has observed that LTC dispensing studies to date do not accurately reflect the costs incurred by independent closed-door pharmacies. It is not evident that Medicare Part D plans or state Medicaid programs have considered the new technology or staffing burdens LTC pharmacies must bear in order to meet the short-cycle dispensing requirements, in addition to the current costs of meeting the Centers for Medicare & Medicaid Services (CMS) LTC performance guidelines. In an effort to quantify reasonable LTC dispensing fees, NCPA has determined it is in the best interest of independent pharmacy providers to pursue a long-term care cost-to-dispense study and share the results with government and private health care industry payers.

Passage of the Patient Protection and Affordable Care Act moved the issue of short-cycle dispensing to the forefront for long-term care pharmacies. The legislation requires Part D plan providers to use dispensing techniques determined by CMS to best reduce medication waste. Practically speaking, the intent of short-cycle dispensing is to reduce unused medications by moving from traditional 30-day fills to biweekly, weekly, or daily fills. By January 1, 2013, long-term care pharmacies should be prepared to meet this goal by investing in costly automation or by hiring additional staff to handle the significantly higher workload. NCPA is currently working with CMS to ensure that pharmacies are reimbursed appropriately for the workplace changes necessary to meet short cycle and CMS LTC provider performance guidelines.

The first step in any constructive negotiation begins with the creation of a cost-to-dispense standard. While each participant’s costs will vary, the standard will allow NCPA to present a valid and reliable reimbursement methodology to CMS and payers. NCPA requests the participation of ALL independent closed-door pharmacies in this important cost-to-dispense study. Participation will require valuable time from your busy schedule; however we are confident that the results will prove extremely beneficial to independent LTC providers.

Please consider participating in research which will be conducted in a way that can be verified and validated for presentation to CMS and other important stakeholders. Be assured that all data you provide will be kept strictly confidential. Only the independent analysts with whom NCPA has contracted to conduct the study will have access to the data of individual LTC pharmacy providers and all results will be reported in aggregate form only.

Your help is urgently needed. You should not assume that someone else will participate in the survey; your input is essential. If there was ever a time for LTC pharmacists to come together and work towards a unified goal of an equitable and sustainable cost-of-dispensing fee for independent LTC pharmacies, this is the time.

To receive a survey questionnaire, email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it. or call 1-800-544-7447.

LTC Cost-to-Dispense Study Research Conducted by:

Norman V. Carroll, Ph.D. Professor of Pharmacoeconomics and Health Outcomes School of Pharmacy Virginia Commonwealth University		Michael T. Rupp, Ph.D. Professor of Pharmacy Administration College of Pharmacy Midwestern University - Glendale

David A. Holdford, Ph.D. Professor of Pharmacoeconomics and Health Outcomes School of Pharmacy Virginia Commonwealth University