Nelco Advisory

Set your calendar reminder for Experience Verity 340B Webinar! 📌 Join Verity for an exciting discussion with Josh Free and Scott Milner of Nelco Advisory , along with our very own Matt Krah, on August 15th. In this session, we'll be discussing how pharmacy can be a strategic asset in your health system. We'll go over the basics of pharmacotherapy, how to get buy-in from administration, and how to align with your 340B in-house and external contract pharmacy strategy with real-world examples. REGISTER HERE 👉 https://bit.ly/3ydgjUt #340b #pharmacy #healthcare

Throw enough spaghetti against a wall, and eventually some of it will stick. Here's one of the many 340B criticisms that has recently gained a little traction. Article is behind a paywall, but pretty sure I can sum it up. Claim: 340B discounts reduce drug maker revenue, therefore, reducing taxable income, which means less in taxes paid to the government. So...the claim is 340B is actually supported by tax payers indirectly via this lost tax revenue. Reality: I have some beachfront property to sell if you think corporate taxes are that simple. Drug manufacturers have some of the lowest tax rates in the world due to R&D credits, amongst other things. Many already max out their deductions, so more revenue may not result in a single cent of additional tax--just results in more deduction available to take. You probably know drug makers are strategic and litigious with the patent thicket--they are equally so with taxes. As with the patent thicket, these tactics live in a realm somewhere between "legal" and "grey area" in most cases. Do a little googling for news articles on the topic and you'll see what I mean. There's an interesting article in the Hill from 2 years ago describing how Abbvie made 77% of their revenue in the US market (something like $40B in 2021) yet only about 1% of that income was reported as taxable in the US. So either they had massive deductions and credits, or revenue was allocated overseas. Probably both. Now, to be fair, we pay way too much in taxes. It's hard to support giving the government MORE money for them to send overseas while we have immense problems at home. I think businesses SHOULD be trying to optimize. The example above may be extreme and probably some loopholes should be closed there...but these things are usually legal, unfair as that seems. But that's a separate issue from 340B costing the treasury and therefore the taxpayers, which is quite a questionable claim. #340B #pharma #bigpharma #phrma #healthcare #340Bmatters #pharmacy #pharmacist https://lnkd.in/gPkRC5vq

Oregon has the second fewest pharmacies per capita in the entire nation. You'd think there would be opportunity to enter this market and take care of patients--but even the chains don't want to expand in this backwards ecosystem. The ones that don't run a PBM are getting killed, and the ones that do could care less because they get your business by default. Congress must act to restore sanity to the pharmacy marketplace, and the broader healthcare market as well. Nice article here featuring a few of our Oregon independent pharmacies including Brooklyn Pharmacy, Stayton Pharmacy, and Reedsport Pharmacy. #pharmacy #pharmacist #healthcare Oregon State Pharmacy Association https://lnkd.in/gTr3Bn4B

"There is no one I've run into that wants to eliminate 340B," Griffith said Monday at the American Hospital Association's (AHA) annual membership meeting. Good to hear, but I'm not so sure. I think there's a bunch of pharma bros that want a full repeal. The constant, coordinated, false narratives about the program demonstrate a desire to destroy 340B rather than debate the issues on the merits. And to be fair, there are some things that could improve. But rather than dig into those, we instead hear things like this: -340B causes drug shortages (no evidence) -340B entities don't provide enough charity care (manipulated statistics) -340B patients don't get the discounts (out of context, and often not true) -Contract pharmacies are in affluent neighborhoods (how dare those patients leave their poor communities) -Contract pharmacies are in primarily white neighborhoods (nice attempt to curry favor with the wokesters) -Contract pharmacies are in other states thousands of miles away (never heard of mail order or specialty pharmacy I guess) -State contract Rx laws are unconstitutional (2 courts disagree so far) -State contract Rx laws overrule patient definition and REMS restrictions (zero evidence, and not the stated intent of the laws) -Genesis patient definition will double the program (most CE's haven't changed a thing) -HRSA audits are a joke (try reading the enforcement actions) These are just a few of the false narratives that come to mind. But look, I get that people want improvements. I think the Group of Six proposal includes a lot of common sense clarifications and improvements that both sides should be in favor of--but pharma doesn't want that because it codifies many of the things the providers know are not new or controversial, but that pharma has worked so hard to spread misinformation about. Want a healthcare ecosystem without 340B? Help make it so we don't need 340B. It's not needed if we directly fund the safety net providers. And it's not worth much at all if our drug prices come back to reality. Both would have to happen at the same time...but I don't see anyone arguing for that. #CV340B #340B #340Bprogram #pharmacy #pharmacist #healthcare #340Bhealth https://lnkd.in/grXTSj3q