Publication

Article

Pharmacy Times

January 2025
Volume91
Issue 1

The Evolving Business Model of Pharmacy: Moving Beyond Dispensing

Key Takeaways

  • Pharmacies are evolving into health hubs, focusing on preventive care and chronic disease management due to declining dispensing revenue.
  • Expanded services include medication therapy management, immunizations, and telepharmacy, enhancing patient care and accessibility.
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Pharmacies are increasingly viewed as wellness hubs and community health partners.

Pharmacies have long been a cornerstone of patient care, with dispensing medications as their primary focus. However, the health care landscape is rapidly evolving and pharmacies are increasingly facing new challenges that threaten the traditional dispensing-centered model. The decline in revenue from dispensing services has led to a shift of the pharmacy’s role in health care. As pharmacies begin to expand their services to meet these changing needs, they are uncovering new opportunities for revenue and patient care while also facing hurdles that must be addressed for successful adaptation. In this new paradigm, pharmacies are beginning to function as health hubs, focusing on preventive care, chronic disease management, and collaboration with other health care entities.

Doctor or physician recommend pills medical prescription to male Patient hospital and medicine concept - Image credit: joyfotoliakid | stock.adobe.com

Image credit: joyfotoliakid | stock.adobe.com

TRADITIONAL CHALLENGES AND THE NEED FOR CHANGE

Historically, pharmacies have thrived on revenue generated through dispensing medications, which provided both accessibility and convenience to patients. However, this model is under pressure due to declining reimbursement rates from insurers and increased competition from various chains and online pharmacies. These factors have made it essential for pharmacies to diversify their services to remain relevant and financially viable.

Additionally, as the demand for value-based care grows, pharmacies are expected to play a more active role in improving patient outcomes, such as in prevention and chronic disease management. This new approach requires significant adaptation within the pharmacy industry, as it introduces novel responsibilities and expands pharmacists’ scope of practice.

About the Author

Anjeza Fero, PharmD, RPh, contributes her expertise in the pharmaceutical industry as a manager of content development and deployment with Bayer’s cardiovascular team and is a professor in the Department of Physiology and Neurobiology at the University of Connecticut.

EXPANDED SERVICES: A PATIENT-CENTERED APPROACH

In response to these challenges, pharmacies are moving beyond a traditional dispensing role by adopting a range of clinical services that provide valuable, patient-centered care. These services include medication therapy management (MTM), immunizations, chronic disease management, and patient education. MTM, for instance, allows pharmacists to review patients’ medication regimens comprehensively, helping to identify and resolve potential issues such as drug interactions or nonadherence. Such services offer patients the convenience of consulting with a pharmacist within their local community, enhancing care quality and accessibility.

Pharmacies are also collaborating with health care providers, insurers, and public health organizations, making it possible to offer reimbursable services such as vaccinations and disease management programs. Immunization services are particularly impactful because pharmacies are often more accessible than primary care offices, which has proven beneficial in recent years with the rollout of influenza and COVID-19 vaccines.1 By expanding their services, pharmacies can improve patient outcomes and establish themselves as valuable contributors to the broader health care system.

Telepharmacy is another growing area that enables pharmacies to extend their reach, particularly in rural or underserved regions. Remote consultations, prescription services, and medication management can be offered to patients who might otherwise face significant barriers.2,3 Telepharmacy also supports patients with limited mobility or transportation options, ensuring continuity of care and regular check-ins that help manage chronic conditions effectively. These telehealth options allow pharmacists to serve a wider range of patients and offer personalized care.

CHRONIC DISEASE MANAGEMENT AND PREVENTIVE CARE

In the evolving pharmacy model, a significant area of focus is chronic disease management. Due to an increasing number of patients managing conditions such as hypertension, diabetes, and cardiovascular disease, the role of pharmacists has expanded to include blood pressure monitoring, blood glucose testing, and smoking cessation programs.1 Pharmacists have extensive clinical knowledge and training and can offer these services and help patients manage their conditions effectively.

Additionally, pharmacies are integrating preventive care services such as health screenings and lifestyle counseling into their operations. By providing support for lifestyle changes and early intervention, pharmacies can help patients prevent or manage conditions before they escalate. These services align with public health initiatives and reduce the burden on other health care facilities. Ultimately, this establishes pharmacies as full-service health and wellness centers in their communities.

CHALLENGES TO EXPANDING PHARMACY SERVICES

The expansion of pharmacy services offers many benefits, but it also brings challenges. Regulatory restrictions and state-specific laws sometimes limit the scope of practice for pharmacists, preventing them from delivering the full range of services in every state. To overcome these regulatory barriers, the pharmacy industry must advocate for policy changes at the state and federal levels, collaborating with professional organizations to support legislation that expands pharmacists’ roles.

Reimbursement for clinical services also remains a significant challenge. Currently, pharmacies struggle to secure compensation for services such as MTM and chronic disease management, as insurers do not universally recognize these as reimbursable services. Addressing this issue requires demonstrating the value of these services in improving patient outcomes and reducing health care costs. Partnering with insurers and health systems to showcase the effectiveness of pharmacy-provided services can lead to more comprehensive coverage and ensure that pharmacies are fairly compensated for their contributions to patient care.

Managing staff and optimizing workflows are additional operational challenges that must be addressed. Expanding services means that pharmacy staff must be trained in new roles and responsibilities, which requires investment in ongoing education and clinical training. Pharmacies must also invest in technology such as electronic health records (EHRs) and telehealth platforms to facilitate the integration of expanded services and ensure seamless communication with other health care providers. These technological investments are essential to creating a cohesive and efficient workflow.

THE FUTURE: WELLNESS HUBS AND COMMUNITY HEALTH PARTNERS

As pharmacies evolve, they are likely to become integrated wellness centers that offer a wide range of health services. Beyond immunizations and chronic disease management, future pharmacy services may include weight loss programs, mental health support, and counseling for conditions such as anxiety and depression.3 For instance, pharmacists could offer MTM for psychiatric medications, ensuring safe and effective treatment regimens for patients with mental health conditions.

Advances in technology such as telehealth, EHRs, and remote monitoring systems will further support the transformation of pharmacy. Telehealth platforms can facilitate virtual consultations and follow-up appointments, providing patients with flexible options for managing their health. Additionally, wearable devices and other remote monitoring tools allow pharmacists to track patients’ health metrics in real time, which is crucial for managing chronic diseases. These tools help pharmacists deliver proactive care that supports both physical and mental health, promoting a more holistic approach to health care.

The evolving role of pharmacies from medication dispensers to providers of comprehensive, patient-centered care marks a significant shift in health care. By advocating for expanded rights and reimbursement, pharmacies can improve access to health care and provide preventive care in the community. As health care needs and patient expectations evolve, pharmacies are essential in delivering accessible, comprehensive, and high-quality care.

REFERENCES
1. New vaccines enable pharmacies to become immunization destinations. Cardinal Health. September 19, 2023. Accessed November 21, 2024. https://newsroom.cardinalhealth.com/2023-09-19-New-vaccines-enable-pharmacies-to-become-immunization-destinations
2. Poudel A, Nissen LM. Telepharmacy: a pharmacist’s perspective on the clinical benefits and challenges. Integr Pharm Res Pract. 2016;5:75-82. doi:10.2147/IPRP.S101685
3. Ponushis A, Gandhi N. The future of community pharmacy: direct patient care. American Association of Colleges of Pharmacy. Accessed November 21, 2024. https://www.aacp.org/article/future-community-pharmacy-direct-patient-care
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