Land of the Corporate Giants - Let the Games Begin

[Pantablo]

Recent actions between Walgreens and CVS Caremark have the potential to change the landscape with respect to pharmacy access. These corporate giants have opted to disagree on what the value and reimburesment should be to access to their respective pharmacy outlets. There's also a war of which business model will best provide pharmacy services and the distribution of drugs is the correct one. Should a vertical intergration between a brick and mortar pharmacy chain be allowed to intergrate with a PBM? What are the ramifications of this new model, will it severely restrict or limit the access patients now considered more as members or plan participants the ability to get a prescription dispensed?

I think the outcome of this dispute may establish precedent for a new normal, that is, restricted pharmacy access to a level that we have not seen before.

I welcome your thoughts and input as on this issue and what we a managed care pharmacists should be considering.

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[pharmdmba]

Regarding your question about the business model, Walgreens has a PBM component but does not manage as many covered lives or business clients when compared to CVS/Caremark. In fact, WAG and CVS/Caremark are the only major retail pharmacy/PBM/Mail-order service organizations that dominate the U.S. pharmacy marketplace.

The dispute over the retail pharmacy reimbursement rate between CVS/Caremark pharmacy and Walgreens has existed since 2007-(when CVS/Caremark merged). In the near future, I personally see CVS/Caremark offering Walgreens a competitive rate in its pharmacy network.

[Pantablo]

Looks like the big boys (at least I think they are) are back in the sandbox playing together again. Like we were instruced in kindergarten, you need to learn how to share, not lie, and be good team players -- these are the things these corporate giants often fail to do.

[Nochmar]

All of this reminds me of the potential impact many of us were concerned about when Mail Pharmacies were coming onto the scene. Most community pharmacies were/are very concerned about their volumes, and I think many thought the patient would choose the lower price alternative much more than they actually did.
I think many patients re-learned the value of a face-to-face pharmacist consultation or at least the value of having an RPh down the block when things didn't work out with their delivery of mailed Rx's. Bottom line, some patients will tolerate these changes; many will not.
In general, I don't think the American consumer appreciates being told where to go for much of anything. I think the forced use of a certain pharmacy chain or the inability to shop at another isn't something most patients/employers will tolerate. Let the CVS' and Walgreens' of the world make all the angry noises they like, I don't think the market is ready to tolerate that.