The Ethical Pharmacy Transition
The Challenge
The organization’s pharmacy plan was being managed by a large national PBM that was profiting from high drug prices and withholding rebates. This extractive model was the opposite of the organization’s commitment to ethical business practices and fair dealing.
The IMPACT
Leadership felt they were inadvertently participating in a system that prioritized corporate profits over patient health. This misalignment was creating a sense of ethical friction among the staff and the board of directors.
The Strategy
JA transitioned the organization to an ethical, pass-through PBM that operates on a flat management fee. We ensured that 100% of the rebates were returned to the health plan and that the pricing for every drug was based on a transparent, acquisition-cost model.
THE OUtcome
The transition resulted in lower drug costs and total clarity for the organization’s leadership. By choosing an ethical partner, they turned their pharmacy spend into a reflection of their values, proving that you don’t have to sacrifice integrity for efficiency.
Things Employers Should Consider
The pharmacy industry is full of misaligned incentives that often work against the interest of the employer and the employee. Choosing a partner who operates with total transparency is the only way to ensure that your healthcare dollars are being used ethically. Employers should demand a contract where the provider’s only source of income is the disclosed fee you agree to pay them.