January 25, 2021
A new report, “Pharmacy Services Administrative Organizations (PSAOs) and their Little-Known Connection to Independent Pharmacies,” sheds light on the role of PSAOs in the prescription drug supply and payment chain.
Highlights in the report include:
- PSAOs are little-known but large organizations that contract with pharmacies to perform many of the pharmacies’ core operations, such as negotiating reimbursement and tracking remittances.
- About 83% of independent pharmacies contract with a PSAO.
- Over 75% of independent and small chain pharmacies contract with PSAOs owned by the “Big Three” wholesalers (Amerisource Bergen, Cardinal Health, and McKesson).
- PSAOs lack transparency and have almost no federal or state oversight.