IPMD Member Pharmacy Dead Drug Bulletin Board

Efficient Inventory management is a corner stone of profitability. Higher inventory turns equal higher capital efficiency. Many factors can affect this metric:

  1. Patient’s medication is changed to a different strength or a different medication

  2. Patient moves or passes away or transfers their prescription due to insurance requirements

  3. The drug was a 1 time use for a single patient.

 

Whatever the cause, not all manufacturers give full credit for an expired drug. Some manufacturers require return within 30days to get credit, some require a bottle to be full for return, some require anywhere from 50-80% full for any return. Such conditions mean that the drug will lose value as soon as it is expired. While on your shelf, it is blocking capital. Meaning, the $100 it costs for that dead drug can be invested in a drug that is moving fast (turning over) so it produces profit each time it sells, higher the number of turns, higher the profit it earns.

 

While PBM’s are squeezing pharmacies for every dime, it is important, heck essential that we look at controllable metrics like inventory and manage it efficiently. All the chains utilize such tools to exchange drugs between their own stores, it is critical we have an ability to do so too.

 

IPMD is excited to provide this forum for members to post lists of their dead drugs. This provides an opportunity for pharmacies to “sell” a dead drug to another pharmacy. The buying pharmacy has the advantage of fulfilling an existing prescription with a cheaper option, maybe the drug is a 1 time use drug, so the buying pharmacy does not have to buy the full bottle. Many advantages exist in this mutually beneficial relationship.

 

BULLETIN BOARD GUIDELINES:

  1. This bulletin board is only available for pharmacies who are paying IPMD dues monthly/annually. All Other Listings will be Removed.

  2. Per the Drug Supply Chain Security Act (DSCSA) pharmacies can exchange the drugs to fulfill and existing prescriptions only. While this requirement may change in future, currently it allows for transfer between pharmacies to satisfy a prescription. There is a column on the invoice for receiving pharmacy to record Rx# that drug will be used for.

  3. Complete the following form to list your “dead drug” on the IPMD Dead drug bulletin board.

  4. Email Ipmdunited@gmail.com the name of your pharmacy contact to be listed for such transfers. Only they will have access to the dead drug bulletin. We will attempt to collect and post such info on a master sheet. Due to limited manpower, we can only update these sheets 1-2 times per year.

  5. Each transfer between stores is to be initiated via the Store 1 to Store 2 transfer form. This form should be FULLY completed to be compliant with applicable laws.

  6. All transfers are facilitated by stores themselves. IPMD only serves to list the products on a bulletin board. IPMD does not negotiate pricing, shipping, or any aspect of this transaction.

  7. Transfer of C2 drugs requires a DEA 222. If you currently use CSOS exclusively for all wholesaler ordering, then you may have order paper copies of DEA222 via this DEA website.

  8. It is up to the pharmacies themselves to resolve disputes and ensure compliance with all applicable laws.  A selling pharmacy not providing the invoice# from where they purchased a drug is one such issue. If the buying pharmacy makes an exception to this, they assume any risk that decision carries.

  9. We suggest that for drugs being shipped, individual bottles should be put in individual Ziplock bags and closed using a rubber band to ensure the bottle caps do not open and the drug is not spilled inside the shipping box and wasted. The same holds true for liquids. Ensure good packaging to avoid losses and conflicts.

The IPMD board welcomes any suggestions to improve this process further. Any compliance issues that can or may arise should also be sent to the board via email so the board can take necessary action.

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