NARD NATIONAL PSAO "RxNET" INITIAL MEMBERSHIP MAILING

NARD NATIONAL PSAO "RxNET" INITIAL MEMBERSHIP MAILING to 56 local and regional PSAOs (Pharmacy Services Administration Organization) has been completed. Max Richburg, chief exec officer of NARD's national PSAO effort reported at the association's annual meeting that "as of last Thursday [Sept. 25] every affiliation agreement has gone out." The PSAOs receiving RxNet contracts are located in 37 states; 24 of the PSAOs asked to participate are affiliated with state pharmacy associations. The deadline for the primary enrollment period in RxNet is Dec. 31. The key to RxNet is "partnership," Richburg stated. NARD's "affiliation agreement" approach with existing PSAOs will position pharmacies participating in a PSAO and the national prescription network "to respond successfully to the demands of the marketplace through whatever means Rx drug plan purchasers in the marketplace wish to contract," the RxNet agreement guidelines say. NARD President Joseph Schutte declared: "The bottom line for all of our efforts [in developing RxNet] is that we want independents to get their rightful share of the business through whatever type PSAO with which the buyer wishes to contract." RxNet will avoid antitrust issues by relying on nonpharmacist participation on the board, chief exec Richburg explained. He pointed out that antitrust concerns were the first issue addressed when the network plan was being established. Richburg assured NARD members that RxNet is on a "solid and firm foundation" with regard to antitrust questions. Richburg noted that non-providers and non-pharmacists have been appointed as members of the RxNet board. In addition, a subcommittee of the board composed of two nonpharmacists and one pharmacist will decide fee and fee-related issues. The PSAO contract also permits individual pharmacies to opt out of a specific third-party agreement. An individual member can choose not to honor beneficiaries of a specific contract if he informs RxNet within 10 days after being presented the contract. During the formation of RxNet, the issue of contracting for administrative services was also reviewed. Richburg said that in late April he met with experts in the areas of claims processing, drug utilization review and data processing. Based on those meetings, Richburg said, he is "convinced" that RxNet can engage vendors' services at a competitive rate. RxNet will begin its marketing program in January, Richburg said. At an indication of the potential market, Richburg said that during one week in September he received phone calls or letters from three corporations, one state government and one 50-state, Protestant denomination group expressing interest in the idea of a PSAO which would permit its members to deal with their local pharmacists. When asked whether he envisions RxNet as entering into a "bidding war" with chains for third-party business, Richburg replied, "Yes, we are proud to do that." He added, however, that RxNet's goal is price and quality. "Those entities solely concerned with price only probably are not going to be happy" with that goal. For instance, said Richburg, conditions for participation include agreement to provide emergency and delivery services.