By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    bowl of vegetable salad
    Raw Foods: benefits and harms
    November 9, 2021
    pros and cons of the keto diet
    Read This Before You Follow the Keto Diet
    May 18, 2022
    spinal cord injuries
    4 Potential Causes of Spinal Cord Injuries (and How to Seek Compensation)
    May 25, 2022
    Latest News
    5 Steps to a Promising Career as a Healthcare Administrator
    July 31, 2025
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Effective Healthcare Requires a Social Approach
    June 15, 2015
    CCBHCs
    2016 Excellence in Behavioral Health Program Design
    February 23, 2016
    conducting Clinical Trial
    5 Tips for Conducting a Clinical Trial
    April 21, 2024
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: The ABCs of Specialty Pharmacy
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > The ABCs of Specialty Pharmacy
BusinessFinanceSpecialties

The ABCs of Specialty Pharmacy

Abby Norman
Abby Norman
Share
6 Min Read
Specialty Pharmacy
SHARE

Specialty PharmacyAnyone who has ever had the displeasure of heading to the pharmacy to fill a prescription sans insurance knows that the cost of prescription drugs can be sky-high. If these prescriptions are recurrent and long-term, a patient can spend thousands of dollars on pills alone in a given year.

Specialty PharmacyAnyone who has ever had the displeasure of heading to the pharmacy to fill a prescription sans insurance knows that the cost of prescription drugs can be sky-high. If these prescriptions are recurrent and long-term, a patient can spend thousands of dollars on pills alone in a given year. For the insured, the costs are somewhat assuaged by the carrier, but there’s always the good ol’ co-pay to consider. A new study from Medicare was able to shed some light on a rather compelling phenomenon in prescriptions – it looks like now, more than ever, specialty drugs are making the majority of pharmacy costs for patients. They project that by 2018, this very small group of drugs will comprise half of all pharmacy spending.

Medicare defines ‘specialty’ medication as any drug that costs $600 + per month. This astronomical cost is usually far less about the medication itself, but the handling and storage requirements which far exceed being simply left out on a shelf. These medications may require very specific controlled-temperature storage so that they don’t lose their efficacy, or they may need to be administered via a time consuming or highly specified method.

It’s not that more patients will require these medications, but that the cost of the medications will continue to rise – therefore, they will account for more spending. By 2018, the projected spending for specialty medication alone could be as much as $ 235 million according to Medicare’s study. Even though more patients may not necessarily require the medications, the costs to produce them as the treatments become more targeted and refined, due to technological innovation, will increase. In order to keep up with the latest advancements, the manufacturing of these medications becomes more intense, but the number of patients who will ultimately buy these medications doesn’t increase concurrently.

More Read

Hospitals Going Concierge: Creative Marketing at Its Best
Expanding Insurance May Not Mean Long Lines and Trouble Seeing the Doctor
Further Disruptive Changes in Health Care Delivery
European Diabetes Market
Does FTC Social Media Guidance Provide Clues for Pharma?

What about generics? For many patients, the generic version of an otherwise expensive medication is a saving grace; they can still get what they need, but for often half the cost. When it comes to these specialty medications, though, there rarely is a generic alternative – meaning if patients need the prescription, they have to pay – whatever the cost may be. The same goes for insurers. Often, it’s in the best interest of the payer and the patient to choose the generic for its price, but if the patient requires a medication that has no generic formulation, they don’t have a choice. In a way, the specialty market has created a bit of a monopoly – but not intentionally. In order for a medication to have a generic it must be able to be transformed into a biologically equivalent recipe, if you will, and because specialty medications are so much more complex than most medications on the market currently, there isn’t a method for quality control – it’s far too difficult to regulate the production of generics for medications that are so complicated to manufacture in the first place.

It doesn’t always have to break the bank though: patients should be aware that sometimes, physicians have an incentive to prescribe a medication because they buy and administer it themselves – and there could be another, less-expensive option, but they wouldn’t necessarily get the “brownie points” for prescribing that particular medication. Patients can often also save money by administering the medication at home or in their doctor’s office, rather than going to the hospital for it. Incurring extra costs from a trip to the hospital might seem unavoidable for a complex medication regimen, but even the help of visiting home health nurses can allay some of the cost.

Nationwide, we’re continuing to see the numbers of patients with complex, chronic illnesses climbing – so, it’s more likely than ever that specialty pharmacy management and accreditation will become vital to our population health. As the cost of these medications continues to rise, more and more specialty pharmacies will be cropping up around the country. Through proper accreditation, pharmacies can contribute to the education and support of patients who need these costly drugs, and be a trustworthy resource in their community.

Have you recently undergone specialty pharmacy accreditation? Are you considering it? Tweet us on Twitter and let us know!

TAGGED:pharma
Share This Article
Facebook Copy Link Print
Share
By Abby Norman
My name is Abby Norman and I am a healthcare blogger. With over 10 years of experience in the medical field, I have developed a passion for helping others understand the complexities of healthcare.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

5 Steps to a Promising Career as a Healthcare Administrator
5 Steps to a Promising Career as a Healthcare Administrator
Health
July 31, 2025
holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025

You Might also Like

Specialties

Important Tips On How To Deal With Chronic Pain At Night

November 15, 2019

Publix Closing ‘Little Clinic” Retail Medical Clinics

May 18, 2011
cancer patients treatments
CancerSpecialties

How Cancer Patients Can Fund Their Treatment

March 15, 2022

Genuine Hospital Content Can Generate New Patients

June 11, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?