Those who have built not just a profession as a pharmacist, the business of the pharmacy as well will likely treat retirement differently compared to pharmacists who have chosen to work for a hospital or retail chain. Those who own their own pharmacy must also look to sell the pharmacy. Three tips that will help pharmacy owners looking to sell their business in 2021 are discussed below.
Step #1: Prepare financial and tax paperwork.
Put together a balance sheet and have federal and state tax returns available for the last three years. Have Medicare Supplier Numbers and Medicaid Provider Numbers if the pharmacy provides durable medical equipment or provides for Medicaid eligible patients.
Review patient files and make sure all necessary information is present. This includes prescriptions and properly executed Assignment of Benefit forms. Also make sure all necessary licenses are present and up to date.
Step #2: Conduct an audit.
It is a good idea to hire an agency to conduct an audit of the pharmacy’s billing practices. This will provide a potential buyer with the assurance that, after the purchase is complete, they can continue with billing practices without concern of violating state or federal regulations.
Step #3: Review marketing practices.
The federal government continues its crackdown on Anti-Kickback Statute (AKS) and Stark Law violations. As such, it is a good idea to review marketing practices and contracts with other providers to make sure there is no potential concern for allegations of illegal kickbacks.
It is also helpful to show that the consumers who use the pharmacy are happy and plan to continue getting their prescriptions from that facility. The purchaser may also request that employees agree to remain with the pharmacy after the transaction is complete for a set period of time.
It is important to draft documents to the specific transaction once the pharmacy owner finds a potential buyer. This will allow more flexibility and better ensure the document addresses this specific transaction.