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A QUARTERLY PUBLICATION FOR AMERICAN ASSOCIATED PHARMACIES’ MEMBERS, ASSOCIATES, SUPPLIERS AND STAKEHOLDERS Update on Biosimilars pg 6 The Link Between Patient Counseling & Loyalty pg 4 AAP gains higher profile with deals pg 9 AllyScripts- A Specialty Pharmacy for Independent Pharmacies pg 4 Q2 2016 American Associated Pharmacies – and its subsidiaries AllyScripts and Associated Pharmacies, Inc. – is a national, member-owned and directed cooperative of independent pharmacies. q2-2016-v1.indd 1 5/10/2016 8:29:47 AM

AAP gains higherUpdate on Biosimilars pg 6 The Link Between Patient Counseling & Loyalty pg 4 AAP gains higher profile with deals pg 9 ... We will continue to provide updates to those

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Page 1: AAP gains higherUpdate on Biosimilars pg 6 The Link Between Patient Counseling & Loyalty pg 4 AAP gains higher profile with deals pg 9 ... We will continue to provide updates to those

A QUARTERLY PUBLICATION FOR AMERICAN ASSOCIATED PHARMACIES’ MEMBERS, ASSOCIATES, SUPPLIERS AND STAKEHOLDERS

Update on Biosimilars pg 6

The Link Between Patient Counseling & Loyalty pg 4

AAP gains higher profile with deals pg 9

AllyScripts- A Specialty Pharmacy for

Independent Pharmacies pg 4

VO1CEQ2 2016

American Associated Pharmacies – and its subsidiaries AllyScripts and Associated Pharmacies, Inc. – is a national, member-owned and directed cooperative of independent pharmacies.

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2 VO1CE Q2 2016

AAP Senior Executive Staff

Jon CopelandChief Executive Officer/President [email protected]

Clint King President of API [email protected]

Paul Carlin Vice President of Finance [email protected]

Wayne Boese Vice President of Sales [email protected]

Mark Metzger Vice President of Merchandising [email protected]

Bob Vaden Vice President of IT [email protected]

Brandy Hooper Director of Human Resources [email protected]

Emily MarinoDirector of [email protected]

Tracie HeyrmanVice President of Preferred Partners

Jeff Vigh

AAP Board of Directors

Greg Mitchell Chairperson

David Dingman 1st Vice Chairperson

Sonia Martinez 2nd Vice Chairperson

Joe Dalton Director

Jeff Harrell Director

Joe Meyer Director

Jay Norberg Director

Spencer Stephens Director

William Steverson Director

Jack Vasoya Director

Laura Wagner Director

PRESIDENT’S MESSAGE

Jon Copeland, R.Ph.Chief Executive Officer / PresidentAmerican Associated Pharmacies

[email protected]

[email protected] & GM, AllyScripts

We recently concluded our 2016 AAP Annual Conference in Austin, TX. It was a pleasure to interact with the hundreds of members that came in for the event from all over the country. The excitement and energy of the meeting, the involvement of the members and the hospitality of the city made it a very memorable event. During the meeting of the members, we discussed AAP members generating another astounding record breaking year for purchases and rebates through the primary vendor agreement(s) and direct member owned warehouse purchases (API).

Also, in the member meeting, we discussed Arete Pharmacy Network, PIPCo, AllyScripts and a pending renewal and extension of our primary vendor agreement.

Related to Arete Pharmacy Network, we have seen initial positive results from our joint venture in the PSAO space gaining wins on access and fairness of pricing for our pharmacy members. There are some operational changes that we will be announcing in coordination with Arete Pharmacy Network, in the near future, related to some enhanced services that will be available to the AAP membership.

On May 1, we closed our acquisition of PIPCo and welcomed several hundred new direct AAP members to the organization. We will continue to provide updates to those new direct members as we work through the transition process and will do our best to ensure a smooth transition offering many benefits that have been enjoyed as PIPCo affiliated pharmacies plus the additional direct attention of the AAP staff (current and former PIPCo employees).

Related to AllyScripts, we announced the creation of a new wholly owned subsidiary that will be a licensed specialty pharmacy operating in Alabama. AllyScripts is designed to help our members retain patients, provide specialty services and products and compete in the growing specialty market segment without the costly investment in inventory, systems or personnel needed to provide specialty services. This subsidiary will expand on AAP’s specialty pharmacy solutions and not replace the AAP Specialty relationship that several of our members utilize today. Additional details will be made available as this pharmacy gains licensure and we expect to launch during mid to late summer.

Finally, I relayed to the members that we are working on a renewal and extension to the primary vendor agreement. The agreement is designed to meet the members request to offer additional discounts on branded pharmaceutical products and make additional member beneficial adjustments to our agreement. I expect additional information will be released on this subject very soon. The model we will be utilizing will be different and I encouraged all of the members that utilized API to not significantly modify their purchase patterns without consulting their AAP territory manager first.

Next year’s annual meeting will be in Kissimmee, Florida, April 27-29, 2017, we are hopeful the membership will make their best efforts to attend.

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3VO1CE Q2 2016

HEADEDYOUR WAY

AAP is always striving to provide the best solutions for our members. Here is a snapshot of what to expect in the upcoming months.

AllyScripts Specialty PharmacyAs announced during the 2016 AAP Annual Conference, AllyScripts will be available soon for independent pharmacies. AllyScripts is a specialty pharmacy that will provide cost-effective care driven by convenience, quality, outstanding customer service and values that promote positive outcomes. More information can be found on page 4.

AAP Senior Executive Staff

Jon CopelandChief Executive Officer/President [email protected]

Clint King President of API [email protected]

Paul Carlin Vice President of Finance [email protected]

Wayne Boese Vice President of Sales [email protected]

Mark Metzger Vice President of Merchandising [email protected]

Bob Vaden Vice President of IT [email protected]

Brandy Hooper Director of Human Resources [email protected]

Emily MarinoDirector of [email protected]

Tracie HeyrmanVice President of Preferred Partners

Jeff Vigh

AAP Board of Directors

Greg Mitchell Chairperson

David Dingman 1st Vice Chairperson

Sonia Martinez 2nd Vice Chairperson

Joe Dalton Director

Jeff Harrell Director

Joe Meyer Director

Jay Norberg Director

Spencer Stephens Director

William Steverson Director

Jack Vasoya Director

Laura Wagner Director

VO1CE

New to the VO1CE? Is this your first time receiving American Associated Pharmacies’ (AAP) quarterly publication, the VO1CE?Welcome to our member-owned cooperative comprised of 2,100+ independent pharmacies. If you would like to continue receiving industry news and solutions for your pharmacy, please email [email protected].

[email protected]

AAP Welcomes Two New Board MembersDuring the 2016 AAP Annual Meeting, two new board members were elected for the West. We would like to welcome Jeff Harrell and Jay Norberg to AAP’s Board of Directors.

New Primary Vendor Agreement (PVA) DealAAP signed a new agreement with our primary vendor that will benefit the membership effective June 1st, 2016. More information will be given in the upcoming weeks.

[email protected] & GM, AllyScripts

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4 VO1CE Q2 2016

[email protected]

AllyScripts will allow independent pharmacies to retain patients, provide specialty services and products from their pharmacy, all without the investment in inventory, systems or personnel.

WHY CHOOSE US ?

AllyScripts is a specialty pharmacy that will provide cost-effective care driven by convenience, quality, outstanding customer service and values that promote positive outcomes.

ABOUT US

Program Components

Clinical ServicesClinical Pathway Management REMS Program Management

Patient EducationTherapy, Drug and Adherence Reporting

Patient Care Management Process

Patient EnrollmentBenefits VerificationPatient ManagementScheduling Delivery

Drug Product DispensingShipping and Tracking

Caring Relationship

AllyScripts works with our pharmacies to help ensure they have

the tools and resources needed to retain their patients and provide the ultimate care their patients deserve.

OUR SERVICE

AllyScripts is a specialty pharmacy designed to promote positive outcomes and an enhanced quality of life for those we serve.

AllyScripts

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5VO1CE Q2 2016

Specialty drugs will make up more than half, or 56.3%, of U.S. drug spend in 2016 with specialty drug revenues projected to grow beyond $483 billion by 2020. Inflammatory conditions, Hepatitis C, Multiple Sclerosis, Rheumatoid Arthritis and oncology are leading the increases. While 68% of specialty pharmacy market share is concentrated in five central fill mail order and specialty companies - 32% of the market remains open to competition among retail, mail and other specialty pharmacies. Independent pharmacies must find a way to provide specialty services.

AllyScripts, a wholly owned subsidiary of AAP, is designed to provide your pharmacy with the opportunity to enter the specialty pharmacy segment. AllyScripts will help you retain your patients, provide specialty services and products from your pharmacy and compete in the growing specialty market segment without the costly investment in inventory, systems or personnel needed to provide specialty services.

AllyScripts will be a full service specialty pharmacy located in Scottsboro, AL providing high touch patient care. Services include medication therapy management, self-administration training, adherence management, Prior Authorization (PA) management, patient assistance program support, clinical patient management and intervention, Risk Evaluation and Mitigation Strategy (REMS) requirements and manufacturer and payor data reporting.

Because AllyScripts is a licensed pharmacy all an AAP retail pharmacy needs to do to take advantage of specialty services is to transfer the specialty prescription to AllyScripts. Operationally, AllyScripts will provide full back office services including patient intake, insurance verification, adjudication, scheduling, dispensing, shipping (cold chain management) and refill management.

Patients will be encouraged to pick up their prescription at your retail pharmacy* which will provide an additional layer of patient safety and care, help prevent therapy disruption and will increase compliance- particularly in the case of items that require special handling, storage and usage instructions. Patients will also be offered delivery to their home, physician’s office, their place of employment or wherever they prefer.

AllyScripts is anticipating licensure in early summer 2016. For more information, contact AllyScripts at: [email protected].

*return to store option not available in Arkansas, Oklahoma or West Virginia

By: Jeff Vigh, President and General ManagerAllyScripts, LLC

AllyScriptsSpecialty Pharmacy

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6 VO1CE Q2 2016

on a whim with no relation whatsoever” to real world costs, we wrote in a letter to CMS earlier this month. We called that practice a “blatant disregard” for the federal regulation that “is serving to undermine” the Part D program and “truly jeopardizes the ability of pharmacies to serve these patients.” The practice also calls into question the accuracy of drug pricing information beneficiaries rely on via the Plan Finder website.

This follows the familiar pattern of PBM “whack-a-mole” gamesmanship. NCPA has actively supported the efforts of our state partners in passing MAC drug transparency laws in 29 states. But the PBMs are finding ways to avoid complying, such as no longer using the term “MAC” to argue on a technicality that the law doesn’t apply. That’s why we now are trying to use “generic drug pricing transparency” in legislation when possible. NCPA also is aiding state associations in Arkansas and Iowa that are defending their transparency laws in federal court from PBM industry lawsuits.

Slow and low MAC pricing updates is a top member priority, according to NCPA’s annual member survey. We think it’s important to update you with the latest on this issue as members prepare for next month’s NCPA Congressional Pharmacy Summit.

Since Jan. 1, 2016, Medicare has required that Part D plans and PBMs use a standard for pharmacy reimbursement that is updated at least every seven days “to accurately reflect the market price of acquiring the drug.” (Emphasis added!) You and I know that this too often is not the case.

So far in 2016, there have been multiple Part D plans and PBMs that have been using MAC drug pricing values that are far below what would be considered to be reasonably approaching market prices for drugs. The results have compromised beneficiary access and harmed pharmacy small business owners.

Part D plans and PBMs are manipulating MAC pricing standards “as a proprietary variable that can be changed

By B. Douglas Hoey, RPh, MBA, National Community Pharmacists Association

NCPA to CMS:

Enforce Your MAC Rule

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7VO1CE Q2 2016

We know that CMS says it can’t dictate to PBMs the actual reimbursement method they use to reimburse pharmacies, but CMS could—and should—enforce the regulation that exists that classifies MAC as a drug pricing standard and requires updates every seven days to accurately reflect market prices. That would ensure that plan sponsors are indeed in compliance with statutory requirements and maintain Medicare Part D program integrity.

We have recommended to CMS that it further define or provide guidance on what is meant by “the market price of acquiring the drug” and put PBMs on notice that they must be able to verify compliance with this requirement. Plan sponsors and PBMs must be able to demonstrate that MAC values have some correlation or “tie” to the network pharmacy acquisition cost.

We are working with community pharmacy’s allies on Capitol Hill to pressure CMS to act in this area and also to finalize long-pending guidance on direct and indirect remuneration (DIR) fees. Compliance with the MAC rule in Part D is just one of the issues that will be front and center at next month’s 2016 Congressional Pharmacy Summit May 24-25 in Arlington, Va., just minutes from Reagan National Airport and Washington, D.C.

It’s a fact of life that members of Congress are much more likely to act favorably if they can associate an issue with a name and a face of a voter from back home. We hope you can be in attendance to make a strong impression on lawmakers that we need their help.

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8 VO1CE Q2 2016

By Emily Marino, Marketing Director, AAP

In March, AAP announced its plans to acquire the assets of Partners in Pharmacy Cooperative (PIPCo). As of May 1st, the acquisition was finalized.

AAP would like to welcome PIPCo’s staff and members to the cooperative. The acquisition of PIPCo fits within AAP’s growth strategy and solidifies its position as a leader in the independent pharmacy cooperative market. The combination creates significant value for both AAP and former PIPCo members.

As AAP blends the companies, we are uniting two strong independent pharmacy cooperatives’ strengths, competencies, expertise, and leading services around a single vision. The combined efforts will deliver the highest level of support and allow members to become more effective and competitive in the marketplace.

The decision to acquire PIPCo was given thorough and deliberate consideration by the Boards of Directors and management teams of both companies. With the acquisition, AAP will continue to bring innovative products and services to our members.

AAP is looking forward to a year of accelerated growth.

AAP officially welcomes PIPCo to the cooperative

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Source: DrugStoreNews.com

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10 VO1CE Q2 2016

Exciting times at the 2016 AAP Annual Conference

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11VO1CE Q2 2016

Exciting times at the 2016 AAP Annual Conference

AAP Member of the Year 2015Center Pharmacy II

John Luedtke

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12 VO1CE Q2 2016PREFERRED PARTNERS HIGHLIGHTS

PrescribeWellness was founded in 2010 with a mission to inspire collaboration for better health in America. Their innovative technological solutions are designed to elevate the community pharmacist’s role in providing coordinated care and preventative healthcare services. Their software makes it easier for pharmacists to improve customer loyalty, increase patient medication adherence, and provide additional patient care services. Their proprietary cloud-based platform empowers community pharmacists to leverage digital communication to engage patients in a more frequent and impactful way. All patient outreach is conducted using the personal voice of the community pharmacist – the most accessible and trusted health care provider in America. This approach has proven to increase medication adherence, brand loyalty, and visit frequency. With data integration and behavioral science as the foundation, PrescribeWellness software solutions position the pharmacist at the center of community healthcare prevention. For more information, please visit www.prescribewellness.com. PrescribeWellness offers 4 primary solutions • Patient Engagement Center (patient dashboard) – Identify and take action on patients negatively impacting pharmacy performance• Pharmacy Growth (loyalty communications) – Establish stronger pharmacist-patient relationships and engage patients in a more meaningful way• StarWellness (technology-powered Med Sync) – Increase medication adherence with a proven approach that eases the impact on existing pharmacy workflow• PrescribeMedicare (plan comparison tool) – Proactively manage Medicare patients and help them select the right Medicare plan

Do you know if you received all the credit that was due to you from your last expired product return? Return Solutions’ goal is to make sure you know where your credit is in the simplest and most efficient manner possible. All credit due from Return Solutions is issued in a single check, directly to your pharmacy, within as little as 30 days after a return.

Choose the comprehensive on-site service and the Return Solutions representative will take care of all aspects of your return, or if you’d rather complete your return online, select the easy and economical mail-in program. Within your choice of 30, 60, or 90 days after your return, a single check is sent to your pharmacy that includes all credit due from Return Solutions. The rate depends on the time-frame you select and is simply deducted from the check.

As an AAP member, you are eligible for Return Solutions’ “30-for-90” promotion! Receive the check for your first return in just 30 days at the same rate as the 90 day program. Contact Return Solutions at 865.777.4582 for more information or visit www.drugreturns.com/newaccount if you’re ready to get started.

PrescribeWellness

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13VO1CE Q2 2016

For over 15 years ProviderPay™ has been helping pharmacies take control of payment data Benefits:• Reduce overhead associated with banking activities and payer collections• Assure third-party payments due to the pharmacy are received and write-offs are minimized• Gain advantage of receiving electronic remittance information without having to set up transmissions with payers• Manage claims and payment activities for multiple locations effectively• Isolate payment problems so they can be addressed quickly• Improve finance management with visibility into your cash flow• Be prepared for audits and compliance reviews• Reduce your exposure to PHI violations• Augment financial reporting to management and shareholders Features• Claim level reconciliation of third-party payments• Reporting that identifies never paid and under paid claims• Processing of payments and remittances from payers• Access to critical store and chain-level information via secure online portal• Open solution with no restrictions to wholesaler, claims switch, pharmacy association, or buying group• Advanced roll-forward accounting reports, “as of” reporting, and support for custom accounting periods• Resolve open claims with payers on your behalf• Process payer payments and deposit money into your bank accounts• Provide 835 file which aggregates payer activity for upload into pharmacy management system

ProviderPay™ Complete

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14 VO1CE Q2 2016

Arete Pharmacy Network is a Pharmacy Services Administrative Organization organized for, and dedicated to, the profitability and success of community-based retail pharmacies.

Arete Pharmacy NetworkA voice for community pharmacy.

This newly created and powerful network of more than 2,300 pharmacies across the United States combines H. D. Smith’s Third Party Network and American Associated Pharmacies’ United Drugs, creating Arete Pharmacy Network—the premier voice for community-based retail pharmacy.

Arete Pharmacy Network’s programs and services deliver time-saving resources that allow pharmacies to focus on delivering quality patient care. As an important voice and negotiation force for community pharmacy, Arete Pharmacy Network can help effectively manage the financial, quality and operational aspects of your pharmacy business through a comprehensive suite of solutions.

In today’s challenging pharmacy environment, use Arete Pharmacy Network’s strength to your advantage. Visit areterx.com and take a first step toward improving your pharmacy’s business performance.

areterx.com

Our solutions include:

} Audit Assistance

} Central Pay

} Compliance

} Contracting

} MAC Reimbursement Assistance

} Online Credentialing

} Quality Center

} Reconciliation

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15VO1CE Q2 2016

Things overheard at a recent trade show:

We think we may have some answers for you:

Announcing the new RMS Subscription Pricing Plan: Buy your hardware and training upfront, and software starts

as little as $79/month!

Having a business partner who has installed over 1,000 pharmacies nationwide, that has a

CEO who grew up working in his father’s pharmacy, that interfaces to over 25 different pharmacy

systems, and a support staff dedicated to pharmacy POS only, what could be EASIER?

Don’t delay! Call us today to take advantage of this incredible pricing!

1.877.767.1060 • [email protected] • www.rm-solutions.com

Example: Our Star-Lite 1 register solution, typically $9,500, will now start at $5,000 for hardware and training, with monthly software costs starting at $79!

Bonus #1: First Time Ever! Our Star-Lite software will include OTC price updates from your wholesaler.

Bonus #2: Another first! EDI Replenishment ordering with your primary wholesaler!

Pricing available to U.S. based independent pharmacies only.

“You guys have the best system on the market, but I can’t afford you.”

“Don’t you offer anything that fits my small pharmacy?”

“Where’s the bar?”

“I need inventory management, but you’re too expensive.”

“Are you giving away any free pens?”

“I need to be able to download OTC price changes easily.”

“Audits are taking me away from servicing my customers.”

“Will you stamp my bingo card?”

“Do you interface with my pharmacy system?”

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16 VO1CE Q2 2016

Not a member yet? Contact us today to join one of the leading

independent pharmacy cooperatives! 877-797-9227 | www.myrxaap.com

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