NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: Navigating the Drug Channel: Long-Term
Care Pharmacies: At the Mouth
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676255
Fitch Ratings today published 'Navigating the Drug Channel - Long-Term Care Pharmacies: At the Mouth,' the fifth of seven reports analyzing the U.S. drug channel. The report focuses on headwinds and tailwinds faced by long-term care pharmacy companies, as well as their role in the U.S. drug channel and Fitch's take on considerations on the horizon.
Most nursing facilities and other institutional healthcare providers outsource their pharmaceutical procurement and dispensing to long-term care pharmacies (LTCPs). These provide value to their customers by going above and beyond the level of services offered by retail pharmacies. This includes promoting drug formulary compliance, training clinical staff in drug dosing and administration, packaging drugs in unit doses, and employing on-call pharmacists to assist in emergencies.
The two largest LTCP companies in the U.S. - Omnicare, Inc and PharMerica Corp. - together serve roughly 60% of skilled nursing facilities beds nationally.
Future considerations for the industry include potential for pressure on drug manufacturer rebates. The profitability of the LTCP industry depends in part upon the ability of the LTCPs to negotiate rebates on drug costs. There are various actions the federal government could take to limit the extent to which LTCPs are able to profit from drug rebates. A recent proposal by the Centers for Medicare and Medicaid Services (CMS) to require the independence of consultant pharmacists from dispensing pharmacies is one such example.
The full report, 'Navigating the Drug Channel - Long-Term Care Pharmacies: At the Mouth,' is available at 'www.fitchratings.com.' This is the fifth in a series of seven reports that Fitch will publish during the first half of 2012. The expected schedule for future reports can be found on the first page of previously published reports, including this one.
Additional information is available on 'www.fitchratings.com'.
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