Beginning in January 2024 direct and indirect remuneration (DIR) fees will no longer be collected retroactively. Instead, they will be collected up front, and deducted from reimbursements paid to pharmacies. But during the first few months of 2024, when the new process takes effect, pharmacies face the very serious situation of what can only be seen as a “double whammy” — 2024 DIR fee assessments withheld at the same time that 2023 fees are retroactively assessed.
It’s a worst possible scenario for pharmacies, and likely to result in serious cash flows. The National Community Pharmacist Association calls the situation a “DIR Hangover,” while others use terms including “apocalyptic,” and “cliffhanger.”
Whatever term you use, the coming changes are very serious, and may result in cashflow and operational challenges for the nation’s pharmacists, many of whom already operate on extremely tight margins. Which is why pharmacists should act now, if they have not already done so, to try and get ahead of the situation by gaining full visibility into their financial situation and having a plan in place to address the expected challenges. Read more >