meds in two hours? that is assuming they will be home at that time exactly to be consulted. unless they can deliver to your workplace
Amazon Buying Online Pharmacy Pill Pack
- Thread starter Lnsean
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true that^^
Not only technology but relatively "cheap" technology to allow for profit. The technology has to be effective enough at communicating to seniors and people of all cultures/all languages. Plus it has to comply with state laws.
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I'm sure Amazon has done the research and is aware of the regulatory hurdles they will be facing. I'm interested in seeing what their solutions are. They certainly have the capital to cause some waves in Washington. Perhaps they will lobby for changes in Federal law to make their business model viable in every state. I can't imagine they would want to change their model to fit the unique requirements of 50 different states and boards of pharmacy.
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This is a small first step that will let Amazon begin growing a pharmacy dispensing business.
We are still a long, long way from a fundamental restructuring of the complex U.S. drug channel. Chains and the PBM's still have opportunities to defend their position, capture value from internet technologies, and streamline distribution. I'm not even sure Mr. Bezos has enough money to go after urgent care or hospitals. I don't think either is sexy enough for him nor can he scale like a PillPack deal.
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I heard the other day a hospital DOP had dropped his starting pay for new grad PharmD's to $40 per hour. He has 10 resumes on his desk but no openings, oy vey!!
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I don't think you guys really understand the Amazon threat to the profession. Amazon has wholesale licenses in a ton of states. Why would a patient go to CVS to pay $300 for Advair on insurance when they could get it from Amazon for $50 off insurance? Say adios to your cash market. Even worse if the PBMs use Amazon prices for their MAC pricing. Are you Walgreens pharmacists prepared to fill prescriptions for free?
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Amazon let go of a lot of the wholesale licenses. You are making an awful big assumption that the manufacturers would give them a significantly better price than everyone else. Other pharmacies have acted as their own wholesaler. Also, you are assuming the insurances will contract with a mail order pharmacy which is not them. Pillpack has already had issues over this.
Change in pharmacy has to be done at the state level. The few times the federal government has tried to get involved in pharmacy practice, it never stuck and had legal problems. They can regulate manufacturing, drug approval, scheduling and a few other things but not day to day pharmacy practice.
Don't underestimate human nature. Insurance companies have done everything to push mail order down their throats and have had decades to do it. People said that would end regular, retail pharmacy and yet, it is mail order which has seen a decline.
Change in pharmacy has to be done at the state level. The few times the federal government has tried to get involved in pharmacy practice, it never stuck and had legal problems. They can regulate manufacturing, drug approval, scheduling and a few other things but not day to day pharmacy practice.
Don't underestimate human nature. Insurance companies have done everything to push mail order down their throats and have had decades to do it. People said that would end regular, retail pharmacy and yet, it is mail order which has seen a decline.
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I'm confused here. Are you saying Amazon will sell at a loss or did you just make up some random number? I find it hard to believe Amazon would be able to buy cheaper then say a Walgreens through ABC. I also think this could bring back rumors of Walgreens buying ABC.
I think Amazon will sell with even thinner margins though. Most of Walmarts $4 list can go even lower. They could probably even give them for free if they did some kind of deal: fill two generics, get one free.
Also I wouldn't worry about cash patients, most use goodrx at this point and we don't make much off it. Cash patients are also extremely non-adherent and aren't prized customers.
The biggest hurdle will be getting the elderly to join. Mail order has been around for awhile, I don't see anything Amazon could do to change those that want to go to the pharmacy.
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A wholesale license does not mean cheaper acquisition prices in supply chain. As I’m sure you are aware the big chains leverage vastly stronger purchasing power of wholesalers that would have much larger power than an amazon. Selling at a loss, and furthermore operating at much larger one is the thing to fear.
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Wont they have robots instead of techs?
In many medical settings, there are few physicians supervising many midlevels.
Did mail order decrease any revenue for the big chains?
In many medical settings, there are few physicians supervising many midlevels.
Did mail order decrease any revenue for the big chains?
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I hope for PillPacks sake they can really close fast and/or there’s no deal closure terms that include dependencies on existing customer relationships or critical contracted parties...
From the WSJ today:
PillPack is also dependent on PBMs to get paid by patients’ insurers. PillPack’s current contract with Express Scripts Holding Co. , one of the largest PBMs, expires at the end of July, says Express Scripts spokesman Brian Henry.
“We have not reached an agreement on [payment] rates and an investigation” into whether PillPack is complying with the contract terms “is ongoing,” Mr. Henry said. “If PillPack elects to terminate our agreement, we are committed to ensuring no gaps in care for our patients.”
From the WSJ today:
PillPack is also dependent on PBMs to get paid by patients’ insurers. PillPack’s current contract with Express Scripts Holding Co. , one of the largest PBMs, expires at the end of July, says Express Scripts spokesman Brian Henry.
“We have not reached an agreement on [payment] rates and an investigation” into whether PillPack is complying with the contract terms “is ongoing,” Mr. Henry said. “If PillPack elects to terminate our agreement, we are committed to ensuring no gaps in care for our patients.”
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They are fighting being classified as a mail order pharmacy and not retail. If the majority of their business is via mail than they should be classified as that.
Every year you have to fill out a form and send it to the insurer. They always ask if you have multiple licenses tif you mail out any rx.
Every year you have to fill out a form and send it to the insurer. They always ask if you have multiple licenses tif you mail out any rx.
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Well aware of that... question is how does this shake out? 1) PP caves and goes with the mail order designation, having what I would guess (assumption) be a material impact on their profitability. 2) Express caves and permits the current arrangement to continue (then why is the renewal done by now?) and keeps the door wide open for amazon 3) no deals reached, agreement terms and they go their separate ways until (if?) a new agreement is reached.
The question is do we think 1 or 3 would trigger any problems for the closing of the deal (depends on terms not privy to our eyes) and how involved does amazon get to be in those negotiations now? How bad would we feel if amazon is more or less just using pillpack to test their luck or get a much more real look at pbm network negotiations and terms?
Ready, set, speculate!
