Buying Your First Pharmacy - Gavel & Pestle Podcast - Pharmacy Podcast Episode 481

First time pharmacy buyers must be careful when buying a pharmacy.

An ill-advised pharmacy purchaser may find himself purchasing a headache, and a prepared pharmacy purchaser may find herself getting a better deal than originally anticipated.

The first 2 major questions to answer before beginning the process is to determine the type of pharmacy to purchase and the way you intend to purchase it.
503A v 503B

Is there adequate space
Compounding within state v out of state
Patients in state v out of state
Large volume compounding v small volume compounding
Sterile v non sterile

Licenses
DEA
Pharmacy State Board

One board?
Multiple boards
FDA
NABP/NCPDP number (National Association of Boards of Pharmacy (NABP) to obtain a NABP/NCPDP number so that you may bill third-party payers.)
NPI number (The National Plan and Provider Enumeration System (NPPES) to apply for a NPI number for the pharmacy and, if applicable, for the pharmacists who will be providing patient care.)

Recommended Agreements
Agreements with various insurance providers
Lease on facility
Building/store lease
In-store vending machines, such as copiers or photo-processing kiosks
Collection service contracts, such as water, utility or phone
Business or franchise contracts with third parties, such as UPS or the United States Post Office
Building and/or parking lot maintenance contracts
Drop-ship vendors for front-end products
Direct accounts with suppliers of gifts, cards and so on
Pharmacy automation equipment
Pharmacy services, such as compounding

Regulations
Have SOPs in place
Training required for SOPs

Laws of Interest
HIPAA
FCA
Anti-Kickback
Advertising and coupons

Fraud

Audit the pharmacy
All prescriptions have valid prescriptions
Billing concerns

Some recommended clauses
Indemnification

Stock purchase v asset purchase

License use/continuation of contracts
Ownership of issues like name etc

State v area of focus
Non Compete/ Non Disparagement
Likely involves some amount of employment by previous owner

Deal Exhaustion is a real thing!!

Darshan Kulkarni, Pharm.D, MS, Esq. The Kulkarni Law Firm 2929 Arch Street, Suite 1700 Philadelphia, PA 19104 Office Number: 215-948-8183 Twitter: @FDALawyers

See omnystudio.com/listener for privacy information.
Learn more about your ad choices. Visit megaphone.fm/adchoices

First time pharmacy buyers must be careful when buying a pharmacy.

An ill-advised pharmacy purchaser may find himself purchasing a headache, and a prepared pharmacy purchaser may find herself getting a better deal than originally anticipated.

The first 2 major questions to answer before beginning the process is to determine the type of pharmacy to purchase and the way you intend to purchase it.
503A v 503B

Is there adequate space
Compounding within state v out of state
Patients in state v out of state
Large volume compounding v small volume compounding
Sterile v non sterile

Licenses
DEA
Pharmacy State Board

One board?
Multiple boards
FDA
NABP/NCPDP number (National Association of Boards of Pharmacy (NABP) to obtain a NABP/NCPDP number so that you may bill third-party payers.)
NPI number (The National Plan and Provider Enumeration System (NPPES) to apply for a NPI number for the pharmacy and, if applicable, for the pharmacists who will be providing patient care.)

Recommended Agreements
Agreements with various insurance providers
Lease on facility
Building/store lease
In-store vending machines, such as copiers or photo-processing kiosks
Collection service contracts, such as water, utility or phone
Business or franchise contracts with third parties, such as UPS or the United States Post Office
Building and/or parking lot maintenance contracts
Drop-ship vendors for front-end products
Direct accounts with suppliers of gifts, cards and so on
Pharmacy automation equipment
Pharmacy services, such as compounding

Regulations
Have SOPs in place
Training required for SOPs

Laws of Interest
HIPAA
FCA
Anti-Kickback
Advertising and coupons

Fraud

Audit the pharmacy
All prescriptions have valid prescriptions
Billing concerns

Some recommended clauses
Indemnification

Stock purchase v asset purchase

License use/continuation of contracts
Ownership of issues like name etc

State v area of focus
Non Compete/ Non Disparagement
Likely involves some amount of employment by previous owner

Deal Exhaustion is a real thing!!

Darshan Kulkarni, Pharm.D, MS, Esq. The Kulkarni Law Firm 2929 Arch Street, Suite 1700 Philadelphia, PA 19104 Office Number: 215-948-8183 Twitter: @FDALawyers

See omnystudio.com/listener for privacy information.

Learn more about your ad choices. Visit megaphone.fm/adchoices