Paul Baldwin

LTC Pharmacy

Baldwin Health Policy Group LLC

Long Term Care Pharmacy is, to put it mildly, a niche sector of the $350 billion US drug distribution industry. In fact, the industry is so specialized that coming up with a total number of LTC pharmacies in the United States is a bit of a challenge. My efforts to research this lead me to believe that there are somewhere between 1500 and 2000 true long term care pharmacies in the US. The industry is estimated to comprise about 5 percent of the drug distribution revenue, or currently about $17 billion.

True LTC pharmacies are closed door (not open to the general public) pharmacies that provide services to residents of nursing homes and assisted living facilities. The industry owes its existence in large part to the provisions of OBRA ’87, which included the Nursing Home Reform Act. The provisions of the law require that nursing homes better manage their residents’ medications. The complexity of the requirements almost assured that an industry would spring up to help nursing homes comply.

LTC pharmacies get their revenue from three primary sources:

  • Medicare Part D
  • Medicaid
  • From Nursing Homes, where nursing homes are reimbursed by Medicare Part A for medications.

    The bulk of LTC pharmacies are small businesses, serving fewer than 1,000 nursing home beds. The successful operator has to be aware of all the federal and state laws that cover professional regulation and reimbursement, as well as the clinical concerns that afflict the frail elderly population.

    There are several great trade and professional organizations that serve as valuable resources for these concerns, such as the American Society of Consultant Pharmacists, the American Health Care Association, Leading Age and AMDA-Dedicated to Long Term Care Medicine and the National Community Pharmacists Association.

    What seems to be missing is a site dedicated to more of the nuts and bolts of the business; focusing on helping LTC pharmacies promote their services to potential customers, looking at the evolution of the industry to accommodate the future needs of seniors in long term care, and examining the technology changes that may re-define the industry.

    Our ambition is to try to fill that space and to do so with style, a touch of humor and a healthy dose of humility.

    Contact Information

    Email :

    Website :

    Phone : (202)294 - 8029

    Address : 208 Old Mill Rd. Royersford, PA 19468