Was 1952 a Low Point for Pharmacists’ Involvement in Patient Care?

While tying the idea of paying for value into the historical arc of clinical pharmacy, I came across an interesting thought:  Was 1952 a low point for pharmacists’ involvement in patient care? Two historical items suggest the answer to this question may be, “Yes.”

1951 Durham-Humphrey Amendment

First, the 1951 Durham-Humphrey Amendment to the Food, Drug and Cosmetic Act (FDCA), sponsored by two pharmacist-legislators, created distinct classes of pharmaceuticals—drugs that required a prescription and drugs that could be sold over-the-counter. Apparently, the primary focus of the amendment was not to establish this dichotomy but to make legal verbally transmitted prescriptions and prescription refills.[1] The federal enforcement mechanism was through the labeling provisions of the FDCA. If a pharmacist sold a prescription-only product without a prescription, that product would be considered to be misbranded and therefore in violation of the FDCA.

Prior to 1951, unless a drug had strong potential for abuse, there were no strong regulations on what products could or could not be sold without a prescription. Clearly, some regulation prohibiting unregulated sale of dangerous substances, is needed, but the Durham-Humphrey Amendment’s failure to establish a third class of behind-the-counter/pharmacist-only products is an issue the profession is still contending with. The Amendment failed to acknowledge pharmacists’ ability (insofar as it existed in 1951) to effectively oversee the use of medications that would perhaps be too dangerous for OTC sales but did not require assessment from a physician before use. First generation antihistamines are examples of products that would potentially fall into this category.

1952 Code of Ethics

The second historical item is the 1952 Code of Ethics.[2] This notorious document, published by the American Pharmaceutical Association, contains incredible quotes that that today seem beyond antiquated. In the second section of the code, “The Duties of the Pharmacist in his Relations to the Physician”, the Code of Ethics states that:

“[The pharmacist] should never discuss the therapeutic effect of a physician’s prescription with a patron nor disclose details of composition which the physician has withheld, suggesting to the patient that such details can be properly discussed with the prescriber only.”

The 1952 Code of Ethics illuminates a different era in pharmacy practice. The statement above clearly describes the patient-physician dyad, not the patient-pharmacist-physician triad of the current pharmaceutical care era. Indeed, it would be impossible to practice clinical pharmacy under the 1952 Code of Ethics.

Conclusion

The 1951 Durham-Humphrey Amendment missed an opportunity to put into law the pharmacist’s ability to make a difference in patient care through effective medication management. The 1952 Code of Ethics echoed the limitations on pharmacists’ abilities by restricting ethical practice to the dutiful and accurate dispensing of prescription products.

The 1960s witnessed encouragement by the APhA for pharmacists to develop a “patient orientation”, such as that of pharmacy pioneer Eugene White’s innovative office-type pharmacy.[3] The 1960s can be considered the origins of clinical pharmacy, which continued to develop through the 70s and 80s, resulting in the 1984 Nursing Home Reform Act’s mandate that pharmacists review medications for nursing home residents and OBRA 90’s requirement that pharmacists counsel Medicaid beneficiaries on prescriptions. The low point for pharmacists’ clinical practice may have been in 1952, and I am confident that with the current movement towards provider status, the high point is yet to come.

[1] Abood RR. Federal Regulations of Medications: Dispensing. In: Pharmacy Practice and the Law. 5th ed. 2008:113-164.

[2] Code of Ethics of the American Pharmaceutical Association. February, 1952.

[3] Sonnedecker G. Economic and Structural Development. In: Kremers and Urdang’s History of Pharmacy. 4th ed. American Institute of the History of Pharmacy; 1986:290-338.

CVS to Acquire, Rebrand and Operate Target Pharmacies: A Pharmacist’s Perspective

The big news today that CVS will acquire, rebrand and operate Target’s 1,660 pharmacies lies squarely at the intersection of pharmacy practice, healthcare and health policy. How does this change the pharmacy landscape? It will turn CVS from a pharmacy juggernaut into a pharmacy Hulk. At the conclusion of the deal, which still has to be approved by regulators, CVS will operate nearly 9,500 pharmacies (7,800 CVS pharmacies + 1,660 Target pharmacies). That’s greater than 1,000 more than its next closest competitor, Walgreens. For more information, read the press releases from CVS and Target or, if you have ~40 minutes for each, listen to the CVS call and Target call about the arrangement. They’re highly informative and the sources for much of this blog post.

What does this mean for pharmacists, patient experience and the generic discount programs? Read on for my thoughts.

**Note:  I worked for CVS for 2 years but transitioned to different, smaller pharmacy chain in October of 2013**

Pharmacists

Most directly affected will be the current pharmacists working for Target. According to Larry Merlo, CEO of CVS, CVS plans to “offer positions to all Target pharmacy and clinical teams and [they] look forward to welcoming them to the CVS/Health family upon the close of the transaction.”The translation is that all pharmacists will be fired by Target and offered a job by CVS. Target’s investor call said basically the same thing.

The good news is that pharmacists currently at Target should expect to still have a job a year from now. The bad news is that the salary, benefits, work environment and corporate structure will all likely be different. Little change is likely to happen immediately, but over time, the FTE:Rx ration will likely fall as CVS seeks to reduce costs.

What will a CVS within a Target look like? CVS and Target are calling the arrangement a “store-within-a-store” design. From the Target call, it is specified that Target will still sell its own branded OTCs. Therefore, the CVS presence will be relegated to behind-the-counter space, counseling rooms and clinic space in the form of Minute Clinics. I wonder if Target will be returning any money to CVS for the time spent by CVS pharmacists over-the-counter in Target “territory” selling Target-branded OTCs.

What does this mean for CVS pharmacists? Likely, there won’t be much change for pharmacists at current CVS locations besides easier data access and prescription transfers. Districts may be rearranged now that the number of stores is increasing so substantially, but I would be surprised if major changes took place at existing CVS stores. I see this as more of a CVS move into Target, not a blurring between Target and CVS pharmacies.

In summary, it seems like Target is trying to transition its behind-the-counter space to CVS and expand clinic offerings with as little change possible regarding OTCs and personnel. At the same time, if I were a Target pharmacist and had a good opportunity to transition my employment before the sale goes into effect, I would.

Patient Experience

This will, of course, depend on how CVS transitions the stores and each patients’ previous experience with pharmacies. That stated, the J.D. Power rankings of pharmacies have CVS/Pharmacy ranked much lower than Target pharmacies. If most staff stay consistent and the transition is gentle, patients might take favorably to the co-branded relationship. That remains to be seen, though, and if the comments on the Target press release are any indication, Target is in for a rough ride.

Generic Discount Program

Target currently has a different type of $4 generic program than does CVS. Through Target’s $4 generic discount program, $4 (or $9, $10 or $24 depending on drug and quantity) becomes the de facto usual and customary price. Therefore, even insured patients pay no more than the discounted price. CVS, on the other hand, uses a $15 annual membership fee to limit access to the generic drug discounts, and therefore can charge whatever usual and customary price the market will bear for insured patients or cash-paying patients not enrolled in the discount program.

The difference between these programs is substantial. Target loses much more money than CVS on the generic discount program because all patients receive generics at the discounted price at Target.

From this quote from the Target conference call, “as a part of this agreement, CVS is committed to having a low cost generic drug option available, without a membership fee, to Target guests who pay cash.” (4:02), it seems like CVS will be adopting a Target-like generic drug discount program. I really wonder what form this would take. It may be that CVS has two different generic discount programs, one for standalone stores and one for Target stores. Alternatively, it could be that CVS has a very limited set of generic prescriptions available to all patients at a discount, with a larger set available once a registration fee is paid. When asked on the Target call how CVS would structure the new program, the respondent said that the specific design would be up to CVS. I look forward to seeing how this discount program is created. Regardless, I anticipate CVS trying to transition Target stores over to a membership fee based model so they can continue to charge the full cash price to insurance companies.

Final Thoughts

I certainly didn’t expect this deal. From the Target investor call, it seems like Target lost money on its pharmacy business in 2014. They seemed to be structuring their pharmacy services as a loss-leader, though, so I assumed that they would be getting enough revenue through other purchases to justify a lack of pharmacy profit. CVS’s ability to purchase generics at deep discounts and use established pharmacist services suggests that it will be able to obtain higher profits than the currently operating Target stores.

This deal makes CVS the clear leader in the pharmacy industry in the US. I really wonder if Walgreens-Boots-Alliance is pursuing similar deals. Stay tuned for more updates.