Many covered entities were recently notified that CVS had acquired 340B software vendor Wellpartner, Inc. As the 340B Program has evolved over the last several years, it is common for pharmacy retail chains to develop preferred relationships with 340B software vendors.
CVS has indicated that they will transition individual retail locations to Wellpartner throughout 2018, with a goal of having all pharmacies transitioned by the end of 2018. Many of the details related to this conversion process have yet to be disclosed, but the processing of CVS prescriptions to Wellpartner will mean covered entities will need to consider the following:
• Opportunities to add new CVS locations that were previously aligned with other 340B covered entities
• Review of current 340B vendor processing fees to ensure covered entities are not being overcharged for CVS claims both through Wellpartner and current vendor arrangements
The CVS acquisition of Wellpartner is just one example of the many challenges covered entities experience on an ongoing basis. Other issues specifically related to the contract pharmacy segment of the 340B Program include:
• Low overall pharmacy claim capture rates
• Low net revenue per claim
• High 340B administration fees
• 340B diversion issues
• Medicaid duplicate discount concerns
• Other compliance concerns
The 340B Program was created by Congress to enable covered entities to stretch Federal resources to reach more eligible patients and provide more comprehensive services to these patients. Blue & Co. believes that optimizing the financial opportunity while maintaining compliance with the HRSA guidelines are equally important for all covered entities participating in the 340B Program.
If you have any questions regarding the CVS announcement or anything relating to the 340B Drug Pricing Program, please contact Jason Prokopik at email@example.com.