In brief: NCPA Digest shows ‘ominous pressure,’ Parachute integrates with athenahealth, COPD Action Alliance launches 

COLUMBUS – Independent pharmacy represented a $94.9 billion marketplace in 2023, with gross profit margin falling to 19.7%, its lowest point in the 10-year lookback window of the NCPA Digest. 

This reflects factors like low or below-cost third-party reimbursements and inflation (which showed up in wages and overhead costs), according to the NCPA. 

Other highlights from the 2024 NCPA Digest include: 

• Independent community pharmacies represent 35% of all retail pharmacies in the United States. 
• The estimated number of independent community pharmacies has declined, falling to 18,984 locations in June of 2024 from 19,432 the year prior. This represents a loss of more than one independent pharmacy per day.  
• In 2023, the average prescription volume was 59,644 per store, a decrease from the 59,758 prescriptions dispensed in 2022. 
• Eighty-three percent of prescriptions at independent pharmacies are filled with a generic drug. This number trended down, perhaps in part due to the exploding popularity of GLP-1 agonists, a category with no generics on the market. 
• Government programs continued accounting for more than half of all prescriptions sold in independent community pharmacies, with 55% of total prescriptions covered by the Medicare Part D and Medicaid programs, combined. 

“The NCPA Digest serves as an annual barometer for independent pharmacy, and this year’s is showing an ominous amount of pressure in the industry,” said NCPA CEO B. Douglas Hoey, pharmacist, MBA. “With independent pharmacies closing at a rate of more than one each day since last year, the report lays bare the ramifications of low and negative reimbursements for GLP-1s and other drugs, no longer countered by tax incentives and revenue earned from offerings related to COVID-19. Whether through other immunizations or services like long-term care, having a successful business increasingly relies on diversifying and bringing in different types of revenue. With the turbulence we’re seeing in independent and chain pharmacy alike, there’s a dire need to fix the broken pharmacy payment model. We’re continuing that fight, armed with NCPA Digest data and the goal of healthier pharmacies and patients.”   

Parachute integrates with athenahealth 

NEW YORK – Parachute Health is now part of athenahealth’s marketplace program, making DME e-prescribing available to a growing network of health care providers. Now, athenahealth users can launch Parachute directly from their existing workflows, preventing administrative paperwork and allowing them to track patient order status from the initial order through fulfillment. “At Parachute Health, our mission is to give all patients a ‘soft landing,’ with the life-saving products and services they need,” said David Gelbard, founder and CEO at Parachute Health. “This marketplace integration with athenahealth is an exciting addition to a series of Parachute partnerships that expand and enhance the Parachute Network.” athenahealth is a leading provider of network-enabled software and services for medical groups and health systems nationwide. The company says its electronic health records, revenue cycle management and patient engagement tools allow anytime, anywhere access to drive better financial outcomes for practices and enable providers to deliver better quality care. 

• Related: Parachute Health recently launched a partnership with Optum and Walgreens/CareCentrix to embed prior authorization workflows directly into the prescribing process, liberating providers from what’s typically a back-and-forth process. 

Providence health system, Compassus form JV 

RENTON, Wash., and BRENTWOOD, Tenn. - Providence, a nonprofit health system serving the western U.S., and Compassus, a provider of integrated home-based care services, have signed an agreement to form a joint venture for home health, hospice, community-based palliative care and private-duty caregiving services. Under the agreement, Compassus will manage operations for the joint venture, which will include 24 home health locations in Alaska, California, Oregon and Washington, and 17 hospice and palliative care locations in Alaska, California, Oregon, Texas and Washington. The joint venture will also include private duty services in Southern California. “Serving people in their home, many of whom are at their most vulnerable, is sacred work and a deeply held part of the Providence mission,” said Terri Warren, Providence chief of community services. “As our communities age, we have been thoughtfully evaluating how to best meet the growing need for these services. Compassus shares our commitment to these services and will enable us to expand access to care in the comfort of home.” The new entity will be called Providence at Home with Compassus. In Lubbock, Texas, however, the Covenant Health hospice program that’s part of the Providence family of organizations will be rebranded as Covenant Health at Home with Compassus. Compassus provides home health, home infusion, palliative and hospice care. The company’s more than 7,000 team members serve patients across more than 270 locations in 30 states. It has a strong track record of joint ventures with not-for-profit health systems, having forged similar joint ventures with providers like Ascension, Bon Secours Mercy Health and OhioHealth. 

New alliance supports ‘often-overlooked public health crisis’ 

WASHINGTON – The Alliance for Patient Access has launched the COPD Action Alliance, a national advocacy coalition that unites stakeholders at the state and federal level through a patient-centered approach. Through its membership network, the alliance will improve awareness and education, encourage policies that elevate the COPD community, ensure patients can access appropriate care and prioritize the clinician-patient relationship. "Our goal is to help transform the way we approach COPD – an often-overlooked public health crisis,” said Stephanie Hu, coalition director of the COPD Action Alliance. “By working together, we can improve care, expand access to treatment and advance policies that put patients first. It's time for both state and federal governments to take decisive action in supporting those living with COPD, reducing its burden, and ensuring every patient has the resources needed to fight this devastating disease." COPD, the third leading cause of death, affects about 30 million Americans, though only 17 million are diagnosed. The nationwide direct medical costs attributable to COPD were $31.3 billion in 2019 and are projected to grow to $60.5 billion in 2029. Learn more at https://copdactionalliance.org. 

NCPA awards Pharmacist of the Year, other awards 

COLUMBUS, Ohio – The National Community Pharmacists Association announced the winners of several awards at its recent annual conference, including Richard “Tripp” Logan, L&S Pharmacy in Charleston, Mo., as the 2024 NCPA Willard B. Simmons Independent Pharmacist of the Year. The annual award, which is given to a pharmacist who exhibits exemplary professional leadership, service to community and commitment to independent pharmacy, is named in honor of Willard B. Simmons, a former executive secretary of NCPA (then known as the National Association of Retail Druggists) and a longtime trustee of the NCPA Foundation. The Logan family currently owns and operates community pharmacies in Southeast Missouri, as well as SEMO Rx Care Coordination, an outcomes-based care coordination and medication optimization center. In addition to practicing at L&S Pharmacy, Logan has served in measure development leadership at the Pharmacy Quality Alliance. He is a member of the NCPA Innovation Center Board, a member of the Community Pharmacy Foundation Board, a member of the CPESN Luminary Expert Council, a CPESN Health Equity Lead Luminary, and a founding member and current COO of Seguridad, Inc. He was also awarded the NCPA Outstanding Adherence Practitioner Award in 2012 and the Missouri Pharmacy Association’s Excellence in Innovation Award in 2019. Other awards announced: 

• Robert Greenwood of Iowa received the 2024 Calvin J. Anthony Lifetime Achievement Award for his dedication to the advancement of the pharmacy profession. He owns and operates Greenwood Drug Inc. and Greenwood Compounding, Osterhaus Pharmacy and Denver Drug, all in Iowa. Greenwood has mentored many students as a preceptor for the University of Iowa and the Creighton University School of Pharmacy. 
• Amina Abubakar, president of Avant Institute and owner/manager of Avant Pharmacy & Wellness Center, with locations in North Carolina, received the Sharlea Leatherwood Memorial Trailblazer Award. Abubakar, who grew up in Kenya, is an internationally recognized award-winning clinical pharmacist, a certified HIV Specialty Pharmacist, and a preceptor to University of North Carolina at Chapel Hill residents and students from several schools of pharmacy. She is currently sharing her passion for advancements in pharmacogenomics with pharmacists, patients and policymakers all over the country.   
• Korey Kreider, owner of the Medicine Man Prairie Pharmacy in Hayden, Idaho, received this year’s NARD Ownership Award for their entrepreneurial spirit through promotion and demonstrated excellence in the field of community pharmacy ownership. Due to the high percentage of patients without primary doctors and the opportunity to provide comprehensive care beyond medication dispensing, Kreider implemented vaccinations, rapid testing, urgent care services, weight loss management, and asthma management at Medicine Man Prairie Pharmacy. Kreider also established a buprenorphine clinic in August of 2023 due to the rise of substance use disorders within the community.   

Aeroflow, United Way coordinate thousands of boxes of supplies 

ASHEVILLE, N.C. – Aeroflow Health has partnered with United Way of Asheville and Buncombe County, among other organizations, to provide immediate relief and supplies following the aftermath of Hurricane Helene. Aeroflow Health and United Way quickly collaborated to open a warehouse donation site just days after historic flooding in Western North Carolina devastated the area. In just 15 days, there were more than 700 volunteer responses and more than 2,600 boxes of essential supplies, such as paper goods, baby formula, cleaning products, personal care items and ready-to-eat meals distributed. To date, the site has received more than 80 supply requests from 59 community organizations. “Community has always been one of our core values at Aeroflow, and that has never been more of a priority than in these past few weeks as we continue to see our community rally together in the wake of this disaster,” said Casey Hite, CEO of Aeroflow Health. “We are grateful for the generosity of our partners who quickly came to our aid and assisted in providing support to our neighbors during this critical time, and we remain committed to providing our community with support and safety by partnering with the organizations who are equally devoted to Western North Carolina’s recovery efforts.” In its initial response, Aeroflow provided more than $400,000 of assistance through disaster relief pay to employees in the impacted areas, temporary housing to displaced employees and their families, and a pantry stocked with food and essential supplies, such as diapers, baby formula and hygiene products. Despite the many donations and volunteer help, Aeroflow and United Way say there is still ongoing financial support needed for Western North Carolina’s communities to rebuild. If interested in learning more about volunteer and donation opportunities, please visit https://www.handsonasheville.org. For more information about placing an order to receive supplies, please reach out at 828-772-8662 or complete this online supply request form: https://www.unitedwayabc.org/helene-relief-resources. 

Sheehan to help lead AdaptHealth’s diabetes biz 

PLYMOUTH MEETING, Pa. – Gary Sheehan has started a new role at AdaptHealth as general manager, senior vice president, of diabetes. “I am looking forward to working with the diabetes team and across the enterprise to grow this critical product category,” he wrote in a post on LinkedIn. “This is an exciting next step for me within Adapt. I am very excited about the team being assembled and our collective focus on service, growth and winning. The HME industry remains at an exciting inflection point in terms of awareness and relevance to the health care continuum and I look forward to working alongside many of you to ensure the industry remains vibrant and continues to benefit the millions of patients and health care decision makers we are privileged to serve and partner with.” Sheehan was previously a senior advisor to Suzanne Foster, CEO, and then Scott Barnhart, COO. Sheehan rolled up his business, Cape Medical Supply, into Spiro Health, and sold it to AdaptHealth in 2021. 

Patient volume slows for sleep, oxygen, report finds 

NEW YORK – Respondents to Needham’s latest Sleep and Oxygen Survey report they saw slower sleep patient volume growth in the last 12 months, and they expect that to continue for the next 12 months. They report they have seen virtually no impact on their sleep patient volume from GLP-1 drugs. They also report ResMed will hold flow generator share but lose mask share over the next 12 months. For oxygen, respondents saw slower oxygen patient volume growth in the last 12 months, and they expect slower growth in the next 12 months. They gave Inogen’s Rove 6 portable oxygen concentrator the highest rating and report the company will gain share over the next 12 months. Overall, Needham believes the results of the survey are mixed for ResMed’s domestic sleep business and positive for Inogen’s domestic B2B business.