LOUISVILLE, Ky.--(BUSINESS WIRE)-- PharMerica Corporation (NYSE:PMC), a national provider of institutional pharmacy and hospital pharmacy management services, today responded to the October 3, 2011, request from the Centers for Medicare and Medicaid Services (CMS) for comments concerning its consideration of changes to the Conditions of Participation for Long Term Care Facilities. PharMerica believes that the changes proposed by CMS, which could require the independence of consultant pharmacists, may increase overall costs for payors and customers and reduce the quality of care and service to long-term care patients and residents.
PharMerica noted that its consultant pharmacists balance clinical effectiveness and economic considerations to achieve the best drug or therapy option for the resident, evaluate for potential drug interactions or known side effects, and provide reviews of formulary compliance. PharMerica believes that these benefits support the CMS mission of providing the highest quality of care at the most economical cost possible.
PharMerica intends to provide CMS with detailed information that supports its view that the use of consultant pharmacists is cost-effective for payors and customers and enhances patient safety. The Company is committed to providing CMS with this information within the 60 day comment period stipulated by CMS.
Commenting on the proposed changes, Gregory S. Weishar, PharMerica Chief Executive Officer, said, “PharMerica’s consultant pharmacists play an important role in ensuring safe and cost-effective outcomes for patients. We are concerned that the changes proposed by CMS could adversely affect customers, payors and, ultimately, residents, resulting in a decrease of much-needed benefits and higher costs. We look forward to working with CMS to assist in their evaluation and are confident that when the totality of the information is analyzed it will lead to a conclusion that the proposed changes should not be implemented. While we strongly disagree with the changes proposed by CMS, even if implemented, they are not expected to result in any material impact on our business.”
PharMerica Corporation is a leading institutional pharmacy services company servicing healthcare facilities in the United States. PharMerica operates institutional pharmacies in 44 states. PharMerica’s customers are institutional healthcare providers, such as nursing centers, assisted living facilities, hospitals and other long-term care providers. The Company also provides pharmacy management services to long-term care hospitals.
Forward Looking Statements
This press release contains “forward-looking statements,” including, but not limited to, statements regarding PharMerica’s strategic plan, prospects, value of the Omnicare offer, regulatory uncertainty, and impact of the conversion of branded to generic drug conversions. These forward-looking statements are based upon information currently available to us and are subject to a number of risks, uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These factors and risks include, but are not limited to, the outcome of, or developments concerning, the Offer; other potential commercial or business combination proposals that have or may be received in the future; the outcome of any litigation related to the Offer or any other offer or proposal and the Board’s recommendation to the stockholders concerning the Offer or any other offer or proposal; PharMerica’s access to capital, credit ratings, indebtedness, and ability to raise additional financings and operate under the terms of PharMerica’s debt obligations; the effects of adverse economic trends or intense competition in the markets in which PharMerica operates; the effects of retaining existing customers and service contracts and PharMerica’s ability to attract new customers for growth of PharMerica’s business; PharMerica’s ability to successfully pursue PharMerica’s development and acquisition activities and successfully integrate new operations and systems, including the realization of anticipated revenues, economies of scale, cost savings, and productivity gains associated with such operations; PharMerica’s ability to control costs, particularly labor and employee benefit costs, rising pharmaceutical costs, and regulatory compliance costs; the effects of healthcare reform and government regulations, including, interpretation of regulations and changes in the nature and enforcement of regulations governing the healthcare and institutional pharmacy services industries; changes in the reimbursement rates or methods of payment from Medicare and Medicaid and other third party payers to both PharMerica and its customers; PharMerica’s ability to anticipate a shift in demand for generic drug equivalents and the impact on the financial results including the negative impact on brand drug rebates; and other factors, risks and uncertainties referenced in PharMerica’s filings with the SEC, including the “Risk Factors” set forth in PharMerica’s Annual Report on Form 10-K for the year ended December 31, 2010. You are cautioned not to place undue reliance on any forward-looking statements, all of which speak only as of the date of this press release. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
Michael J. Culotta, 502-627-7475
Executive Vice President and Chief Financial Officer
KEYWORDS: United States North America Kentucky
INDUSTRY KEYWORDS: Health Pharmaceutical Managed Care