In forming PNPS we commissioned a panel of experts (with intimate knowledge of the inner workings of the drug companies, PBMs and pharmacies) to study the industry and ascertain what can be done to improve it. It concluded that trying to fix a flawed business model and a broken infrastructure can’t be done and that any viable, long-term solution would require an entirely new business model.
At issue is the fact that the free market system is not working as it pertains to the distribution of pharmaceuticals. While many look to attribute blame to the highly profitable pharmaceutical manufacturers, the problem is essentially that the right drugs are not getting to the right people, in the right amounts, at the right time, and for the right price. Simply put, the distribution channel between the drug manufacturers and the patient has been corrupted because the current business model pits the drug companies, PBMs, Plan Sponsors, Plan Participants, physicians and pharmacists against one another as a result of misaligned incentives.
Working directly with the leading pharmaceutical manufacturers, in a way that has never been done before, PNPS, in alliance with its best-of-breed service partners, has established a new paradigm for the pharmacy benefit expense industry – one based upon a newly created alternative transparent distribution channel that is more efficient, more integrated, more honest, less costly and designed to deliver the highest quality of care outcomes.
Below, is the business model design tool that PNPS utilized to structure the manner in which it would approach the market and deliver "pharmacy benefit expense management". As our website describes, on all counts, PNPS operates different than any other PBM or PBA.
