PSAO Advocacy

A Pharmacy Services Administrative Organization (PSAO) is an entity that provides a range of administrative services to independent pharmacies. These services include:

• Contract Negotiation: PSAOs negotiate contracts with Pharmacy Benefit Managers (PBMs) and insurers on behalf of their member pharmacies.
• Claims Management: They aggregate claims to a single payment from third-party payers and manage the disbursement to individual pharmacies.
• Regulatory Compliance: PSAOs assist pharmacies in complying with regulations and credential requirements.
• Data Management: They manage and analyze payment and drug dispensing data to identify and resolve issues with claims.

PSAOs help independent pharmacies by reducing administrative burdens, allowing pharmacists to focus more on patient care. They do not set reimbursement rates, determine formulary listings, or retain any portion of pharmacy reimbursements.

A Group Purchasing Organization (GPO) like Independent Pharmacy Cooperative can play a crucial role in advocating for independent pharmacies with their PSAO. Here’s how:

• Collective Bargaining Power: By aggregating the purchasing power of multiple independent pharmacies, a GPO can negotiate better terms and conditions with PSAOs. This includes more favorable reimbursement rates and contract terms.
• Advocacy and Representation: GPOs often have dedicated teams that understand the unique challenges faced by independent pharmacies. They can effectively represent these pharmacies in negotiations with PSAOs, ensuring their interests are prioritized.
• Regulatory Support: GPOs can help independent pharmacies stay compliant with regulatory requirements by providing resources and guidance. This support can be crucial during contract negotiations and audits conducted by PSAOs.
• Educational Resources: GPOs provide educational resources and training to help independent pharmacies understand the complexities of PSAO contracts and the broader healthcare landscape. This knowledge empowers pharmacies to make informed decisions.
• Data Analytics: GPOs often offer advanced data analytics services that help pharmacies track performance metrics, identify trends, and optimize operations. This data can be used to negotiate better terms with PSAOs and improve overall efficiency.
• Networking Opportunities: Being part of a GPO provides independent pharmacies with networking opportunities to share best practices and collaborate on common challenges. This collective wisdom can be leveraged during negotiations with PSAOs.

By leveraging these benefits, a GPO can significantly enhance the ability of independent pharmacies to advocate for themselves and secure better deals with PSAOs.

In summary, IPC serves as a bridge, safeguarding the interests of member pharmacies, advocating for proper reimbursement, and ensuring accountability within the complex landscape of pharmacy services.