Challenges for Pharmacy in 2024
Last fall I joined Inmar Intelligence because of the great opportunity to work with an organization that is a healthcare, technology and media company uniquely positioned to help stakeholders successfully navigate the healthcare ecosystem. With the NACDS Annual Meeting drawing near, I’m compelled to share the key market forces that are informing Inmar’s strategy going forward. Our priorities will continue to evolve and I am excited to gain more insights from our customers and partners during NACDS Annual.
Financial and operational pressures are mounting
The financial pressures faced by the industry are seriously affecting the viability of the traditional retail pharmacy business model and pressuring the ability of pharmacies to meet the expanding healthcare needs of those in the communities they serve so effectively.
The geography of pharmacy deserts is expanding during a time when consumer access to treatment has never been more crucial.
Primary among these financial pressures is reimbursement. Inmar data from January of this year shows overall reimbursement rates for all lines of business down measurably from January 2023 as DIR fees are now reflected in the adjudicated rate.
On top of reimbursement challenges, pharmacies are also dealing with inflationary pressures, operational complexities and workforce challenges, while also needing to plan for an evolving business and care model that must accommodate and leverage expanded scope of practice, automation and the influence of artificial intelligence in healthcare.
Regulatory obligations are expanding
Pharmacies are also challenged with increasingly complex and burdensome regulations impacting the supply chain, most notably USP <800>, the enactment of the Inflation Reduction Act and full enforcement of DSCSA.
For the latter, final implementation of the Act will hopefully bring value beyond compliance by increasing efficiency throughout the supply chain. However, turning this from an administrative burden to an efficiency gain will require a collaborative mindset across all stakeholders throughout the supply chain.
Consumer expectations and behaviors are changing
Today, consumers are thinking more holistically about their health and are
playing a more active and informed role in their wellness journey. Their increasing engagement with outlets such as omnichannel pharmacies, telemedicine and social media is changing how they learn, what they expect from the retail experience and how they pay for care.
With evolving payer models that blend pharmacy, medical, wellness and even food programs into holistic health and wellness programs, it is incumbent upon all of us in the pharmacy industry to listen to consumers and find innovative and collaborative ways to meet them where they are so that we can stay true to our mission of enabling higher quality care, lowering costs and expanding access.
Our industry’s challenges will not go unanswered. It is well known that community pharmacies are highly accessible and affordable sites of care. With the predicted increase in primary care physician shortages and other access challenges in many parts of this country, the pharmacy profession is well suited to meet these needs.
However, we must work collaboratively as an industry to address the reimbursement and scope of practice barriers. We are inspired by the impact our customers have on improving the lives of health and wellness consumers that they serve. I am excited to be part of an organization that supports this mission by being laser focused on bringing our unique expertise, products and insights to help solve the complex problems that our customers are facing.
Brian Nightengale is executive vice president of healthcare at Inmar Intelligence.
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