Guest for this monthly mastermind is BetterRx. BetterRx helps independent community pharmacies fill for hospice profitably. BetterRx was one of our speakers in the Pharmacy Profit Summit 2022.
Summary:
Dr. Lisa Faast and Ben Clark from Better RX discussed the benefits of filling hospice prescriptions for pharmacies. Hospice prescriptions, once a growth strategy, have been hindered by PBM issues, leading to low profitability. Better RX eliminates PBMs, streamlines the process, and ensures fair payment to pharmacies. This approach increases script volume, reduces labor costs, and improves patient care. Pharmacies like Community RX in Louisiana have successfully transitioned to Better RX, benefiting from consistent payments every two weeks and significant cost savings for hospices. The strategy offers both business and professional rewards, enhancing pharmacy profitability and community impact.
Action Items
- @Lisa Faast – Check with pharmacy employees about current hospice prescription filling status.
- Reach out to Better RX’s dedicated pharmacy success team after completing web form.
- Visit better rx.com/diversifyrx website to fill out web form for pharmacy interest.
Authority
- Lisa Faast is a pharmacy owner and consultant, providing insights from a pharmacy perspective.
- Ben Clark and Robin van Sickle represent Better RX, explaining their software solution.
- Hospice executive directors and C-suite leadership are mentioned as key decision-makers for hospices.
Budget
- Better RX’s solution typically saves hospices 10-40% on their overall pharmacy spend.
- Pharmacies are paid every two weeks by Better RX, regardless of whether Better RX has been paid by the hospice agency.
- The pricing structure is based on “hospice pharmacy friendly rates” that can be adjusted if needed.
Competition
- Traditional hospice PBMs were mentioned as the main alternative.
- Better RX’s solution eliminates the PBM, streamlines the process, and is typically less expensive for hospices.
- Direct contracting between pharmacies and hospices was mentioned as another alternative, but it has challenges with timely payments and invoicing.
Objections
- Some pharmacies may be hesitant due to past negative experiences with hospice prescriptions.
- Pharmacies may be concerned about reimbursement rates and profitability.
- Geographic limitations for smaller pharmacies in rural areas could be a potential blocker.
Need
- Low reimbursement rates from traditional hospice PBMs, often resulting in losses for pharmacies.
- High labor costs due to phone calls and billing rejections with traditional PBM processes.
- Difficulty in growing pharmacy business and attracting new customers.
Questions
- How to get started with Better RX and hospice prescriptions?
- How does the payment process work?
- What is the pricing structure to ensure it’s not below cost?
- Is it still more economical for hospice agencies once they have paid Better RX as well?
Sentiment
- The overall tone of the call was positive. Lisa Faast expressed enthusiasm for the Better RX solution and its potential benefits for pharmacies.
- Ben and Robin from Better RX presented their solution confidently and addressed questions openly.
- Participants asked clarifying questions but seemed receptive to the information provided.
Outline
Introduction to Hospice Prescriptions and Better RX
- Lisa Faast introduces the topic of hospice prescriptions, emphasizing their importance in her early pharmacy career and as a growth strategy.
- Lisa discusses the challenges pharmacy owners face with hospice prescriptions due to PBM issues, making it unprofitable.
- Better RX is introduced as a solution that eliminates PBMs, streamlining the hospice prescription process and making it profitable.
- Lisa highlights the professional and community benefits of hospice prescriptions, emphasizing the rewarding experience of caring for hospice patients.
Introduction of Ben Clark and Better RX
- Ben Clark thanks Lisa for the introduction and introduces Robin van Sickle, head of channel partnerships.
- Ben shares the origins of Better RX, starting as a chain of independent community pharmacies serving hospice patients.
- The focus of Better RX is on creating technology solutions that improve patient outcomes by ensuring medications are delivered quickly.
- Ben outlines the importance of getting medications to hospice patients quickly to ensure a comfortable and dignified passing.
Technology Solutions and Benefits for Pharmacies
- Ben explains the technology solutions provided by Better RX, which facilitate quick medication delivery to hospice patients.
- The technology eliminates the need for mail order pharmacies, ensuring scripts are filled in the community where patients reside.
- Better RX’s software significantly reduces phone calls and billing rejections, making the process easier for pharmacies.
- The combined solution of Better RX and community pharmacies results in pharmacies filling more hospice scripts profitably.
Challenges with Hospice PBMs and Solutions
- Ben identifies three problematic practices of hospice PBMs: spread pricing, taking script fulfillment away from community pharmacies, and high labor costs.
- Robin adds that hospice executive directors often don’t recognize these issues, conditioned by PBMs to focus on cheap drugs.
- Better RX addresses these issues by ensuring pharmacies are paid fairly, scripts are filled in the community, and the process is streamlined.
- The combined solution results in better outcomes for patients, better experiences for pharmacies, and cost savings for hospice agencies.
Case Study: Community RX Success Story
- Robin shares a success story of Community RX in Monroe, Louisiana, transitioning to Better RX’s solution.
- Priscilla and Kyle at Community RX were initially hesitant due to past experiences with PBMs but saw the value in Better RX.
- Better RX worked with Community RX to understand their needs, transition one hospice agency, and secure another.
- The success story highlights the benefits of Better RX for both pharmacies and hospice agencies.
Q&A Session: Pharmacy Owners’ Concerns
- Lisa Faast asks about the first steps for a new pharmacy owner in a small town to start filling hospice prescriptions.
- Ben advises ensuring the pharmacy is prepared to handle hospice prescriptions, including having the right inventory and delivery capabilities.
- Mike Vesely asks about serving hospice patients in smaller communities, and Ben suggests expanding reach through delivery services.
- Speaker 3 inquires about the payment process, and Ben explains that pharmacies are paid every two weeks, ensuring timely payments.
Additional Benefits and Final Thoughts
- Lisa Faast emphasizes the growth and professional benefits of filling hospice prescriptions, including free marketing and patient loyalty.
- Better RX’s solution allows pharmacies to avoid PBM issues, ensuring fair reimbursement and streamlined processes.
- The meeting concludes with a reminder of the benefits for both pharmacies and hospice agencies, and an invitation to reach out for more information.
- Lisa thanks Better RX for the presentation and expresses excitement about implementing the strategy in her own pharmacies.