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