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Report: Specialty pharmacy to account for half of all prescription revenue by 2018

PHILADELPHIA — Almost two-thirds of specialty pharmacy revenues are attributed to 1-of-3 companies, and the specialty pharmacy market is poised to explode, according to a Drug Channels Institute report released Tuesday. 

"Three companies — Express Scripts, CVS Caremark and Walgreens — account for 63% of revenues from pharmacy-dispensed specialty medications that treat such illnesses as cancer, multiple sclerosis and rheumatoid arthritis,” stated Drug Channels Institute CEO Adam J. Fein, the study's author and a widely regarded expert on pharmacy economics and the pharmaceutical supply chain. “By 2018, 50% of industry revenues will come from specialty drugs,” Fein added. “Drug stores, hospitals, physician, wholesalers and health plans are all battling for position in this fast-growing market.”

The report, called "2013-14 Economic Report on Retail, Mail and Specialty Pharmacies," is a 185-page analysis of the $287 billion U.S. pharmacy industry with 98 proprietary charts, exhibits and data tables. What’s more, the institute analyzes how healthcare reform will affect pharmacies. It explores such factors as the healthcare coverage expansion, forthcoming Medicaid pharmacy reimbursement changes, the boom in narrow pharmacy networks for Medicare drug plans and unprecedented growth in the 340B drug discount program.

 

 

Every competition will be

Every competition will be destroyed by these monopolies that exist by complicit government inaction. - Adam Gottbetter

Due to the risks and expense

Due to the risks and expense involved with Specialty Pharmacy Medications, it's critical that retail community pharmacist be involved with delivering the necessary pharmaceutical care and medication management services required to ensure optimal use. This is not the type of care to be delivered by off-site professionals who do not have a relationship with the patient. Otherwise physicians would adopt the same remote care treatment model. Plus patients should have a right to choose their pharmacist. The next important step for pharmacists to take is to communicate patient risks and concerns with this care model to CMS. Otherwise we could end up with additional health care risks and costs not unlike some of those acknowledged recently in the "Policy and Technical Changes to the Medicare Advantage and the Medicare Prescription Drug Benefit Programs for Contract Year 2015" (CMS-4159-P)
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