Flash Returns Newsletter February 2019

Send us a return during February and receive 50% off service fees!

www.flashreturns.com

The Perils of Inventory: Returns to the Rescue


Imaging the typical busy day in the pharmacy. The pharmacist receives a prescription for a product not regularly dispensed but it just so happens the drug is in stock. The drug has a long shelf life and the bottle is a bit dusty. There are just enough tablets to complete the order and the patient leaves smiling. One month later the PBM initiates an invoice audit. The claim for the in-stock medication has been found as discrepant based on missing purchases and the PBM is attempting to take back the full dollar amount because they only accept historical purchase records for a set amount of time.

The prescription that you took delight in filling has now come back to haunt you. You cannot locate the original invoice, or the distributor will not provide invoices older than 2 years and you cannot trace back the perpetual inventory to confirm the original on-hand amount. Toast!!! Not only did you potentially lose profit on a dusty drug when you graciously provided services to the patient last month, but you also lost the full profit (if any) and principle on the prescription claim post audit. To make matters worse, you receive a termination letter the next day as a result of poor audit performance.

Sterilized dispensing records and inventory purchase records have become a standard for initiating the network contracting process, completing the network credentialing process, and to expand the PBM audit process. Even worse, inaccuracies or discrepancies can lead to contractual denial or network terminations. Accurate and complete perpetual inventory and historical inventory documents are paramount. Have you archived all the necessary documentation to validate your on-hands at any point in history?

Unless one is interested in accumulating artifacts to furnish a pharmacy practice museum setting, inventory turns, including returns, are not only essential to financial success but also to contractual compliance. A dusty bottle can hurt your business financially, and even worse, contractually. It is important to have a policy and procedure in place to process returns when it fiscally makes sense!

Christopher L. Gruber, Pharm-D

Chris.gruber@rxcconsulting.com

Mark Newkirk, Pharm-D

Mark.newkrirk@rxcconsulting.com

Pharmacy Compliance Consulting, LCC

2539 John Hawkins Pkwy

Ste 101, PMB 207

Hoover, AL 35244

Phone: 205-769-6992

Fax: 205-769-6988

www.rxcconsulting.com

Send us a return during February and receive 50% off service fees!

www.flashreturns.com

Send us a return during February and receive 50% off service fees!

www.flashreturns.com

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