The Governor of New York signed Assembly Bill 9729 into law this past November, introducing a legal framework for shared pharmacy services. This law, set to take effect on May 22, 2026, allows pharmacies to collaborate in processing and dispensing prescriptions, with an aim to enhance efficiency and patient care. With this legislation, New York will become one of many states that recognize shared pharmacy services or “central fill” arrangements whereby pharmacies may work with each other to process and fill prescriptions.
New York Board of Pharmacy History with Shared Pharmacy Services
Before the COVID-19 pandemic, the New York Board of Pharmacy (“Board”) maintained regulations that permitted pharmacies to furnish a prescription drug to another pharmacy that did not have sufficient stock to fill a prescription order. The Board permitted this transfer only in limited, non-recurring situations. Though remote processing of prescription orders was not explicitly prohibited, the Board provided no additional public guidance addressing shared pharmacy services. The absence of clear guidelines led to uncertainty among pharmacies regarding the permissibility of collaborative arrangements.
As part of its response to the pandemic, the Board issued a COVID-19 remote processing waiver pursuant to Executive Order 202.11, and permitted pharmacists and pharmacy staff to perform remote order entry and remote order entry verification, but not remote dispensing. This limited scope of this policy served as an additional indicator of the Board’s prohibition of central filling and processing services in New York.
In 2023, after the Executive Order expired, the Board published proposed regulations governing central fill arrangements. However, after receiving comments on the proposed rule, the Board opted to revisit and modernize the Pharmacy Practice Act with the state legislature and formally recognize shared pharmacy services, rather than address the practice through rule making.
New Rule
The New York Pharmacy Practice will define “shared pharmacy services” as a system where multiple registered pharmacies can collaborate to process or fill a prescription or order. Like most other jurisdictions that permit central filling, both pharmacies participating in the dispensing must be licensed in New York. Key requirements of the new rules include:
- Common Database: Pharmacies will be required to share a common electronic file to allow for the flow of information between pharmacies.
- Record-Keeping: Detailed records must be maintained for each step of the prescription process, including the identities of individuals involved who have performed each function.
- Policy and Procedure Development: The pharmacies must implement policies and procedures outlining the responsibilities of each pharmacy involved.
How Frier Levitt Can Help
Implementing shared pharmacy services frequently involves navigating the intersection of multiple state laws. Pharmacies who participate in these arrangements are encouraged to engage competent healthcare counsel to assist them in understanding and complying with the nuances of shared pharmacy services regulations, including guidance on structuring arrangements, drafting necessary contracts between pharmacies, and addressing limitations on how pharmacies may dispense prescription pursuant to such models. Frier Levitt’s experienced attorneys can assist pharmacies engaged in shared services to evaluate and improve their compliance measures, develop comprehensive policies and procedures delineating the responsibilities of each pharmacy, and identify and mitigate potential legal risks associated with shared services—including risks associated with reimbursement for prescription orders dispensed pursuant to shared service relationships. Contact us to learn more.
