PharMerica targets assisted living

As Medicare Part D and the medication reimbursement world continue to evolve, one of the country’s largest long-term care pharmacy services companies is setting its sights on a widening market: Assisted living.

PharMerica, headquartered in Louisville, Kentucky, has had a strong presence in skilled nursing facilities for decades, but now thinks the time is ripe for greater roles for medication management and pharmacy services in assisted living.

With a strong finish to 2016, PharMerica saw its revenues jump by 4.3 percent—a $21.8 million increase—in fourth quarter alone. The $530 million company also acquired Express Care and Stanley LTC Pharmacy that quarter, giving the company a solid presence in the assisted living markets in North Carolina and Virginia.

“We are launching a new initiative that focuses on growing share in the assisted living segment,” Greg Weishar, PharMerica’s CEO, said in an earnings conference call last week. “Historically, this market was difficult for institutional pharmacies like PharMerica to serve, given inadequate reimbursement. Over the past several years, in anticipation of this evolving market opportunity, we worked hard to ensure adequate reimbursement, so that we can bring comprehensive pharmacy services to seniors in assisted living.”

Cost-reduction efforts, changes in Medicare Part D reimbursement and savvy contracting are all part of the widening opportunities in the assisted living sector, Weishar added.

In his presentation, Weishar also hinted that more acquisitions in the long-term care space could be in the works.

Topics: Finance