PHARMACY ALERT: PSAOs Amending Pharmacy Participation Agreements

Recently, pharmacies have been finding that Pharmacy Services Administrative Organizations (PSAOs) are amending their pharmacy agreements. Pharmacies should closely review these revisions to determine how their rights may change under the new contract amendments. Reviewing there visions is made even more important due to numerous PSAOs seeking to withhold moneys for GER and DIR reconciliations at the close of 2018.

Often, PSAO pharmacy amendments become binding if a pharmacy does not specifically object or deny proposed changes and sometimes do not require a pharmacy owner to specifically sign off on the amendments. If pharmacies do not take any actions, they may be automatically enrolled and be deemed to accept the terms in any pharmacy contract amendments, possibly extinguishing rights the pharmacy may otherwise believe are retained.

Frier Levitt has extensive experience in providing assistance and guidance to pharmacies when reviewing PSAO pharmacy network contracts. Recently, Frier Levitt was successful in obtaining a TRO against PSAO Epic Pharmacy Network, Inc. (Epic), requiring Epic to return money already withheld and refrain from withholding additional money so long as the pharmacy meets the bond requirement, as ordered by the Court. Contact Frier Levitt today to speak to an attorney.