One of the most significant changes in the pharmacy landscape for 2020 lies within the shift from the standard fee-for-service model to a value-based care payment system. The shift demonstrates a increasing awareness surrounding the social determinants of health (SDoH) as well as the growing understanding of the value of health care providers in preventing hospitalizations and in improving overall patient outcomes.

Over the past 5 years, there has been a 7-fold growth in the number of states and territories implementing value-based reimbursement programs, now totaling 48 nationwide. Additionally, more than 20 states have evolved their valued-based care efforts, including recent initiatives by New York, Pennsylvania, and Vermont.¹

Given the contrary impact of the fee-for-service model on the SDoH, the shift from the previous model in favor of a value-based care model is expected to continue. SDoH can save a potential $1.5 trillion dollars in health care spending, according to Healthcare IT News.²

“Pharmacies have a ton to offer in value-based care, and hopefully value-based care has a ton of opportunities for pharmacies as well, as [providers] are focused on outcomes. Both the medications and making sure those medications are appropriately used is a big part of achieving good outcomes and thus good value, which is at the core of value-based care,” Kurt Proctor, PhD, RPh, senior vice president of Strategic Initiatives at the National Community Pharmacists Association, said in an interview with Pharmacy Times.

OTC solutions are projected to transform the role of community pharmacies in patient health and health care as a whole. As added value service and revenue streams grow and adapt, retail pharmacies will grow their SDoH solutions offerings, from health screenings to connecting with patients in the SDoH continuum through food, clothing, transportation, and more.²