Many long-term care facilities feel locked into contracts with large yet underperforming pharmacy providers. Learn how a structured contract review and RFP process conducted by an objective consultancy can reveal better options, reduce costs, and improve care without disrupting daily operations or resident wellbeing.
In the long-term care sector, few things are as costly and as vital as pharmacy services. Yet many skilled nursing and assisted living facilities continue to rely on the same pharmacy provider year after year, often without revisiting their contracts or exploring competitive alternatives. The assumption is that switching providers is too complicated or risky, particularly when patient care is on the line. But failing to assess these contracts regularly can open the door to inefficiencies, inflated costs, and compliance vulnerabilities that directly impact both budgets and resident outcomes.
Pharmacy RFP consultancy LTC RFP explains that this “locked-in” mindset is common and potentially costly, and recommends reviewing existing pharmacy contracts. They note that many facilities don’t realize how much leverage they actually have, or how much they could gain from a transparent and structured review.
One of the biggest risks of sticking with a default provider is the accumulation of hidden or outdated contract terms. Over time, pricing structures may become less competitive, rebates can go unclaimed, and service expectations might fall short of what the facility truly needs. With staffing shortages already straining many long-term care communities, pharmacy-related inefficiencies can lead to delays in medication delivery, lack of clinical support, and missed opportunities for improvement.
In addition, regulations governing long-term care facilities are constantly evolving. If a facility’s pharmacy partner isn’t staying current with compliance standards, or doesn’t provide clear documentation and training, that facility could be exposed to avoidable risk. Reviewing pharmacy contracts through an RFP process allows decision-makers to identify these issues before they become problems.
The idea of switching pharmacy providers can feel daunting, which is understandable. But experts emphasize that the RFP process doesn’t necessarily mean a change in provider; it simply means creating a clearer, more accountable framework for evaluating whether the current provider is still the best fit. And if they aren’t, it identifies one that is.
A full-service RFP process typically includes an initial assessment of current pharmacy services, pricing, and compliance performance. This step often uncovers billing irregularities, service gaps, or opportunities for better alignment. From there, facilities can issue a tailored RFP that outlines their clinical and operational needs, inviting competitive proposals from other providers.
Once proposals are in, a side-by-side analysis can reveal differences in value. Things like cost, service responsiveness, clinical expertise, and support for compliance. If a switch is made, the transition is planned carefully to avoid any disruption to resident care, with timelines, communication protocols, and onboarding clearly mapped out.
For healthcare administrators and Directors of Nursing, the takeaway is this: sticking with the status quo isn’t always the safest or most efficient route. Pharmacy service contracts deserve the same level of scrutiny as other high-cost operational areas. Regular reviews, competitive benchmarking, and structured vendor evaluations allow facilities to maximize their budgets while protecting resident health and safety.
Ultimately, pharmacy services should work in service of the facility - not the other way around. By taking a proactive approach, long-term care leaders can ensure their pharmacy partnerships are transparent, compliant, and aligned with the level of care their communities deserve.
