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What qualifies as a specialty pharmacy?

4 min read

The specialty pharmaceuticals market is projected to grow from $129 billion in 2024 to nearly $1 trillion by 2030 [1.5.6]. But what qualifies as a specialty pharmacy and sets it apart from the retail pharmacy on the corner? It's a focus on complex patient care.

Quick Summary

A specialty pharmacy qualifies through its focus on high-cost, high-touch medications for complex diseases, offering extensive patient support services and often requiring specific accreditation.

Key Points

  • Definition: A specialty pharmacy focuses on high-cost, high-touch medications for patients with complex or chronic diseases [1.2.1].

  • Core Function: They provide extensive patient support, including education, adherence monitoring, and financial assistance, which traditional pharmacies do not [1.4.2].

  • Medication Type: They handle drugs that may be injectable, require special storage and handling, or have significant side effect profiles [1.2.2, 1.2.5].

  • Accreditation is Key: Qualification often depends on accreditation from bodies like URAC or ACHC, which validates their commitment to quality and safety standards [1.2.1, 1.7.5].

  • Integrated Care: Specialty pharmacies work as a collaborative partner with patients and their healthcare providers to manage treatment and improve outcomes [1.8.2].

  • Patient Advocacy: A major role is helping patients navigate insurance hurdles like prior authorizations and finding programs to lower medication costs [1.4.5, 1.8.4].

  • Disease Focus: They manage therapies for conditions such as cancer, multiple sclerosis, rheumatoid arthritis, and other rare or genetic disorders [1.6.4].

In This Article

The Core Definition of a Specialty Pharmacy

A specialty pharmacy is a state-licensed pharmacy that focuses on providing medications for people with serious, complex, or chronic health conditions that require multifaceted therapy [1.2.1, 1.8.1]. Unlike a traditional retail pharmacy that handles prescriptions for common ailments like infections or high blood pressure, a specialty pharmacy is an integrated part of the patient's care team [1.4.3]. They dispense 'specialty drugs,' which are defined by more than just their high cost. These medications may be difficult to administer (e.g., injectable or infused), require special handling and storage like refrigeration, necessitate close monitoring for side effects, or be available only through limited distribution channels [1.2.2, 1.2.5].

The entire model of a specialty pharmacy is patient-centric, designed to provide comprehensive and coordinated care [1.8.2]. This involves a high-touch approach that supports patients from the moment of diagnosis through their entire treatment journey, aiming to improve clinical outcomes and simplify access to these vital, and often life-saving, medications [1.2.1, 1.4.5].

Key Qualifying Characteristics

Several core components distinguish a specialty pharmacy from its retail counterpart. These characteristics are foundational to its role in managing patients with complex diseases.

  • Focus on Complex and Chronic Diseases: Specialty pharmacies manage medications for conditions like cancer, multiple sclerosis, rheumatoid arthritis, Crohn's disease, hepatitis C, hemophilia, and various rare genetic disorders [1.2.3, 1.6.4, 1.6.5]. These conditions often require complicated and long-term treatment regimens.

  • High-Touch Patient Management Services: This is perhaps the most significant differentiator. Specialty pharmacies provide a suite of services beyond just dispensing drugs [1.8.2]. These include:

    • Patient Education and Training: Providing detailed instructions and training on medication administration, especially for self-injectable or infused drugs [1.4.2, 1.8.2].
    • Adherence and Compliance Monitoring: Proactively contacting patients with refill reminders and checking in to ensure they are taking their medication correctly, which is critical for treatment success [1.4.5].
    • Side Effect Management: Offering 24/7 access to pharmacists or nurses who can help patients manage adverse reactions and communicate with their physicians [1.4.7, 1.8.3].
    • Financial Assistance Coordination: Navigating the high cost of specialty drugs by helping patients with benefits investigation, prior authorizations, and enrollment in manufacturer copay programs or foundations [1.4.1, 1.4.5].
  • Coordination with Healthcare Providers: Specialty pharmacies act as a central communication hub, working closely with physicians and other members of a patient's healthcare team to monitor progress, manage side effects, and ensure continuity of care [1.2.1, 1.8.6]. This collaboration helps to streamline clinic workflow and reduce the administrative burden on providers [1.8.5].

The Role of Accreditation

While state licensure is a basic requirement, what truly qualifies a specialty pharmacy in the eyes of payers and manufacturers is accreditation from independent, third-party organizations [1.2.1]. Accreditation signifies that the pharmacy adheres to a national set of rigorous standards for quality, safety, and patient care [1.3.3]. The most prominent accrediting bodies are:

  • URAC: This organization's accreditation is considered a 'gold standard' and focuses on risk management, patient safety, and clinical practice management [1.7.6]. URAC standards ensure that the pharmacy has robust patient-centered management strategies, protects consumer health information, and maintains high-performance customer service [1.3.2, 1.7.4].
  • Accreditation Commission for Health Care (ACHC): ACHC accreditation also demonstrates a pharmacy's commitment to high-quality patient care and operational consistency [1.7.5]. Their standards often incorporate specific requirements related to sterile compounding (USP <797>) and hazardous drug handling (USP <800>) [1.7.3].
  • The Joint Commission: This body provides accreditation that follows the patient's journey through the care process, from prescription to follow-up, ensuring critical safety and quality processes are met [1.3.6].

Achieving accreditation from one or more of these bodies is often a contractual requirement from health plans and pharmaceutical manufacturers, serving as a critical qualification for a pharmacy to be included in a specialty network [1.4.2].

Specialty vs. Traditional Pharmacy: A Comparison

Feature Specialty Pharmacy Traditional Retail Pharmacy
Medications Handled High-cost, complex biologics, injectables, and therapies for rare/chronic diseases [1.2.3]. Medications for common, acute, or stable chronic conditions (e.g., antibiotics, blood pressure pills) [1.4.3].
Patient Support Comprehensive, high-touch services: 24/7 clinical support, adherence monitoring, financial assistance [1.4.2, 1.8.3]. Primarily dispenses medication with high-level counseling upon request at the counter [1.4.3].
Care Coordination Acts as an integrated partner with the patient's doctors and care team [1.8.2]. Limited interaction with prescribers, typically only for prescription clarification.
Insurance & Billing Manages complex prior authorizations; bills both prescription and medical benefits [1.4.5]. Primarily bills prescription benefit plans [1.4.5].
Accreditation Often requires accreditation from bodies like URAC, ACHC, or The Joint Commission [1.2.1]. Accreditation is not typically required for general dispensing.
Drug Handling Equipped for special handling, including temperature control (cold chain) and limited distribution [1.2.5, 1.4.7]. Standard room-temperature storage for most inventory.

Conclusion: An Essential Pillar of Modern Healthcare

A specialty pharmacy qualifies as such by moving far beyond the transactional nature of a traditional pharmacy. It is a patient-centric service model built to handle the immense complexity and cost of modern specialty medications. Through comprehensive patient support, deep clinical expertise in specific diseases, and close collaboration with providers, these pharmacies ensure that patients with the most challenging health conditions can access, afford, and adhere to their life-changing treatments. This integrated approach is not just a matter of logistics; it is a fundamental component of achieving better health outcomes in an era of advanced medicine.

For more information on pharmacy standards, you can visit the National Association of Boards of Pharmacy (NABP). [1.3.1]

Frequently Asked Questions

The main difference is the level of patient care and the types of medications handled. Specialty pharmacies provide comprehensive, ongoing support for complex, high-cost drugs, while regular pharmacies primarily dispense medications for common conditions with less hands-on service [1.4.3].

Conditions that often require a specialty pharmacy include cancer, multiple sclerosis, rheumatoid arthritis, Crohn's disease, hepatitis C, HIV/AIDS, and rare genetic disorders [1.6.2, 1.6.4].

Yes, specialty drugs are typically high-cost medications. Their expense, combined with their complexity, is a primary reason they require the specialized management and financial assistance services that specialty pharmacies provide [1.2.5, 1.4.2].

Often, your insurance company will have a network of preferred specialty pharmacies you must use. In other cases, a drug manufacturer may limit distribution to only a few select specialty pharmacies [1.2.5, 1.8.4].

'High-touch' refers to the intensive, personalized support provided by specialty pharmacies. This includes proactive patient outreach, regular follow-ups, adherence monitoring, side effect management, and 24/7 access to clinical staff [1.4.2, 1.8.2].

Accreditation from organizations like URAC or ACHC demonstrates that a specialty pharmacy meets rigorous national standards for quality, patient safety, and operational excellence. It is often required by insurance plans and drug manufacturers [1.2.1, 1.3.3].

They have dedicated teams that handle benefits investigation, submit prior authorizations to insurers, and help enroll patients in financial assistance programs, such as manufacturer copay cards and grants from charitable foundations [1.4.5, 1.8.5].

References

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Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice.