First time pharmacy buyers must be careful when buying a pharmacy.
An ill-advised pharmacy purchaser may find himself purchasing a headache, and a prepared pharmacy purchaser may find herself getting a better deal than originally anticipated.
The first 2 major questions to answer before beginning the process is to determine the type of pharmacy to purchase and the way you intend to purchase it.
- 503A v 503B
- Is there adequate space
- Compounding within state v out of state
- Patients in state v out of state
- Large volume compounding v small volume compounding
- Sterile v non sterile
- Pharmacy State Board
- One board?
- Multiple boards
- NABP/NCPDP number (National Association of Boards of Pharmacy (NABP) to obtain a NABP/NCPDP number so that you may bill third-party payers.)
- NPI number (The National Plan and Provider Enumeration System (NPPES) to apply for a NPI number for the pharmacy and, if applicable, for the pharmacists who will be providing patient care.)
- Agreements with various insurance providers
- Lease on facility
- Building/store lease
- In-store vending machines, such as copiers or photo-processing kiosks
- Collection service contracts, such as water, utility or phone
- Business or franchise contracts with third parties, such as UPS or the United States Post Office
- Building and/or parking lot maintenance contracts
- Drop-ship vendors for front-end products
- Direct accounts with suppliers of gifts, cards and so on
- Pharmacy automation equipment
- Pharmacy services, such as compounding
- Have SOPs in place
- Training required for SOPs
Laws of Interest
- Advertising and coupons
Audit the pharmacy
- All prescriptions have valid prescriptions
- Billing concerns
Some recommended clauses
- Stock purchase v asset purchase
- License use/continuation of contracts
- Ownership of issues like name etc
- State v area of focus
- Non Compete/ Non Disparagement
- Likely involves some amount of employment by previous owner
Deal Exhaustion is a real thing!!
The Kulkarni Law Firm