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Hiding in Compounds: Maximizing Drug Rebates for LTC Pharmacies and Facilities

Are You Missing Out on Significant Savings By Manually Managing Rebates?

Many long-term care (LTC) pharmacies and facilities are becoming familiar with the significant savings drug manufacturer rebates offer them, but one particular aspect of drug rebates has been less understood. In this article, we will shine a light on drug rebates for ingredients in compounds and IVs that entities are also eligible for.

The Rebate Landscape for SNFs

Let’s refresh our understanding of drug manufacturer rebates and how they work to deliver significant savings for pharmacies and facilities. As drug manufacturers bring new products to market, they will work with pharmacy benefits managers or pharmacy specialists to have their drugs placed in a favorable position on formularies that will allow them to capture more market share. Achieving this involves lowering net acquisition costs through Part D rebates for PBMs or rebates on drug costs through Part A and managed care programs for LTC facilities. 

In some instances, ingredients that go into compounds and IVs are also eligible for these rebates. However, at first glance, a pharmacy specialist looking at drug names on a monthly invoice might not identify rebate-eligible drugs hiding in compounds.

A Modern Solution for Compound Drug Rebates

Entities utilizing a high number of medications made up of several components are routinely overlooking significant savings where included ingredients are eligible for drug rebates. Identifying these components, however, is a challenge if the process of reviewing your monthly utilization for rebate-eligible items doesn’t include a robust analysis of each and every line item and its ingredients, which typically are not outlined on monthly invoices.

A modern solution to this problem exists in the form of SRX’s technology and pharmacy experts. With monthly pharmacy invoices uploaded into the SRX platform, every rebate-eligible drug is automatically identified by our innovative technology, and the required information is collected, reviewed, and submitted so our clients receive their rebate checks.

Due to the level of complexity built into the SRX technology, this process of reviewing line items for eligibility includes a complete analysis of every line item, including the ingredients that make up a compound drug or IV. Beyond this technology, SRX’s pharmacy specialists work with facilities and pharmacies to create a clinically effective formulary that maximizes savings through rebates, thus helping entities that take on cost burdens achieve their lowest net drug cost.

Learn More About How SRX Can Help You Maximize Compound Drug Rebates

At SRX, we developed the technology and expertise to help many entities achieve their lowest net drug cost through the automation of rebates and management of their drug utilization, including contract reviews, adjudication of claims, and optimizing waste and OTC utilization. LTC pharmacies and facilities that leverage our full suite of services are achieving savings of 16% on their net drug costs, often equating to millions of dollars, depending on the size of their operation.

Speak with an SRX specialist today and receive a free analysis of how much you could be savings with our risk-free service.

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SRX is a unified drug cost management solution for long-term care operators. We achieve unrivaled drug cost savings by combining our proprietary technology with expert advisors. SRX’s solutions automate drug rebates, optimize pharmacy management practices, increase managed care exclusion reimbursements, and provide cost-effective employee prescription benefits. SRX guarantees quarterly rebates are paid on time, every time, with no out-of-pocket cost.

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