About Pharmerica Corporation
As the country's second-largest institutional pharmacy operator (behind Omnicare), PharMerica provides purchasing, packaging, and dispensing of drugs to nursing homes, assisted living facilities, and other long-term care settings. PharMerica operates about 95 institutional pharmacies, 20 home infusion pharmacies, and five oncology pharmacies, from which it packages and delivers medications in unit doses (rather than in bulk) to customers in 45 states. It also provides drug usage consulting and monitoring services and hospital pharmacy management services. PharMerica is controlled by investment firm KKR; in 2019 KKR merged PharMerica with home health firm BrightSpring to form a new health services entity.
Change in Company Type
PharMerica is merging into a new health services organization with ResCare (operating as BrightSpring Health Services), a home health services provider acquired by KKR and minority investor Walgreens Boots Alliance for $1.3 billion in early 2019. As a combined entity, BrightSpring and PharMerica will create a leading US home and community-based health and pharmacy services provider.
KKR and Walgreens Boots Alliance bought PharMerica for some $1.4 billion in late 2017.
PharMerica's primary institutional pharmacy business provides complete pharmacy and medication management services to residents in skilled nursing homes. Its ValueMed unit provides flexible pharmacy solutions for assisted and senior living communities.
The specialty infusion unit, Amerita, provides complex pharmaceuticals and clinical services to patients in their homes or in residential facilities. Through this business, PharMerica offers high-touch services to patients who have acute or chronic conditions.
The specialty oncology pharmacy business, Onco360, dispenses oncology drugs and provides care management and related services to patients, cancer centers, and hospitals.
PharMerica's hospital pharmacy management business provides medication safety, workforce optimization, regulatory compliance, utilization management, and remote pharmacy services to acute hospitals, behavioral health hospitals, and other facilities.
PharMerica offers a number of services through online portals including help with medication management (ordering, refills, discontinues, returns), regulatory updates, formulary guides, billing, reporting, and management and utilization reports. It also offers patient medical record management services.
PharMerica operates some 95 institutional pharmacies, 20 home infusion pharmacies, and five oncology pharmacies in 45 states.
Sales and Marketing
PharMerica receives its pharmacy services revenue from Medicare and Medicaid drug plans, commercial insurance companies, institutional care providers, private payers, and contracted providers. PharMerica keeps a close eye on changes to federal health care laws and insurance reimbursement policies, which have the potential to affect its bottom line.
The company serves skilled nursing facilities, assisted-living centers, hospitals, homebound patients, and long-term alternative care providers.
The company's products and services are promoted through a direct sales force.
As a combined entity, Pharmerica and BrightSpring aim to provide a diverse range of services for the senior care, post-acute, and high-need patient markets. The organization aims to use its broad range of complimentary offerings to improve health outcomes and lower costs through integrated care models.
PharMerica's operations benefit from two national trends: the increase in medication usage and the aging of the US population. By consolidating in what has historically been a highly fragmented market, the company has secured its position as one of the largest institutional pharmacy providers in the country. Its size helps it operate more inexpensively, both in terms of securing favorable pharmaceutical prices and delivering products at competitive prices.
The company has worked to diversify its operations, entering markets other than its core long-term care operations such as specialty pharmacy, home infusion, and hospital pharmacy. PharMerica expands geographically by acquiring smaller, regional competitors that operate in target markets.
It also invests in its technology systems to better serve customers and improve operational efficiencies. In 2019 the company inked a deal to utilize MatrixCare's electronic medication administration records (eMAR) platform, allowing for more streamlined medication workflows and documentation.
Over the past few years the company has been beefing up the amount of generic drugs it dispenses as a way to reduce costs and capture more customers. Selling more generics can be a double-edged sword since a shift from brand to generic decreases PharMerica's revenue but improves gross margins.
Mergers and Acquisitions
PharMerica expands through acquisitions of smaller independent pharmacies operating in target markets. For instance, in mid-2019 the company acquired PropacPayless, an institutional pharmacy in Vancouver, Washington.
PharMerica was formed through the 2007 spinoff and merger of Kindred Pharmacy Services (from Kindred Healthcare) and PharMerica Long-term Care (from AmerisourceBergen). The company was taken private by KKR in 2017.
1901 CAMPUS PL
Louisville, KY 40299-2308
Phone: 1 (502) 627-7000
Employer Type: Publicly Owned
EVP and CFO: Robert E. Dries
Chairman: Geoffrey G. Meyers
CEO: Gregory S. Weishar
Employees (This Location): 10
Employees (All Locations): 52,048
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