Many pharmacies are currently exploring the opportunity to serve customers in other states to increase their market share and profits. Almost all states require that any pharmacy that ships or mails prescription drugs into their state must hold a nonresident license issued by that state.
pharmacy license requirements for non-residents
While there are numerous variations across individual states regarding non-resident (out-of-state) pharmacy licensing services, most follow this pattern:
– no pharmacy that is physically located in another state may ship, mail, or otherwise deliver a prescription drug, medication, or device to any patient located in a state, unless the pharmacy is licensed in that state . this applies not only to community and specialty retail pharmacies, but also to hospital pharmacies. Obviously, mail order pharmacies must also follow this rule.
– In order to dispense and ship prescription drugs, medications, or devices to a state, the pharmacy, plus the pharmacist designated as Prescription Department Manager (pdm), must be licensed in the state to which the pharmacy ships the medications. .
– The label on each container of prescription drugs that is shipped, mailed, or otherwise delivered must include the phone number of the out-of-state pharmacy. most states require the phone number to be toll-free. additionally, they require that the telephone number must be answered at least six (6) days a week (and no less than 40 hours in a week) and that the pharmacist must have direct access to each patient’s records.
– The pharmacy must submit a letter of license verification for its actual physical location and facilities, as well as to the pharmacy manager from the state board of pharmacy in which the pharmacy is located. In addition, the pharmacy must submit a copy of its most recent inspection by the state board of pharmacy in the state where it is physically located. Lastly, you must submit a copy of your state’s certificate of status or articles of organization for the corporation.
the risks of not complying
If a pharmacy does not comply with the rules or regulations in a state to which it ships drugs, then two main risks are incurred:
– If the state board of pharmacy becomes aware that the pharmacy is shipping to your state without the required license, it will notify the pharmacy’s local board of pharmacy to initiate a complaint.
: Many PBMs (pharmacy benefit managers) and other third-party prescription plan payers view shipping prescriptions to another state without the required license as a violation of the terms of your pharmacy provider contract. in many cases, they can demand repayment of all money paid for these drugs, perhaps going back a year or more.
the correct way to get a nonresident (out of state) license
Don’t let the complicated process of dealing with all the rules and requirements each state has prevent you from doing business in other states (or doing so at risk!). many pharmacies are hesitant to apply because they are not familiar with all the rules and requirements of each individual state. Sometimes when a pharmacy tries to apply, it finds itself in a situation where the pharmacy board of another state requests additional information and documents, which delays the issuance of their permit and delays in serving customers in that state. condition.
In the pharmaceutical consulting business for over 28 years, hcc has a dedicated division of experts dealing with non-resident applications for each state. they know what each application requires and the specific rules each state has. plus, they know who to talk to at each pharmacy board to keep track of the status of each of their requests. this results in faster approval for your pharmacy and reduces the delays most applicants experience when applying for a non-resident (out-of-state) pharmacy license.
As in any business, time is money! If you’re not currently serving your clients in another state due to licensing or permitting delays, someone else will! In addition, if you currently ship to a non-compliant state, HCC strongly recommends that you avoid the risk of unnecessary repercussions and bad publicity that may result. Use our experts here at Healthcare Consulting Pharmacy Staff to stay up-to-date and compliant with every state you want to do business in. Contact hcc today online or call us at 800-642-1652 for a free, no obligation consultation to see how you can help.