Adam J. Fein

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Adam J. Fein

Adam J. Fein

@DrugChannels

Expert insights from Dr. Adam J. Fein on pharmaceutical economics and the drug distribution system. Contact me at [email protected]

Philadelphia, PA Katılım Mart 2009
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Adam J. Fein
Adam J. Fein@DrugChannels·
𝐓𝐡𝐞 𝐌𝐨𝐬𝐭 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 340𝐁 𝐩𝐚𝐩𝐞𝐫 𝐘𝐨𝐮'𝐥𝐥 𝐄𝐯𝐞𝐫 𝐑𝐞𝐚𝐝 If you care about #340B policy, use the long weekend to read this outstanding new paper: "Stretching Scarce Authorizing Legislation as Far as Possible: A Legislative History of the 340B Drug Pricing Program." Sayeh Nikpay @saynikpay and her colleagues went back to the early 1990's to reconstruct the program's origins. Their research draws on interviews with 18 key participants and 175 primary source documents spanning 1990–1992. Their conclusion is difficult to ignore: 340B was originally designed as a narrow policy solution to address an unintended consequence of Medicaid’s best-price provision and to support core safety-net providers. But the paper makes a compelling case that today’s program extends far beyond Congress’s original intent. Whether you support or oppose the current structure of 340B, this paper is essential reading for anyone who wants to understand how we got here. Read it here: drugch.nl/4dVSiTD One especially fascinating detail: The disproportionate share hospital (DSH) eligibility threshold of 11.75% was chosen to qualify two specific hospitals and secure bipartisan support from Senator Hatch and Representative Bliley. In other words, the threshold was not grounded in any broader scientific or policy rationale. Amazing.
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Adam J. Fein
Adam J. Fein@DrugChannels·
𝐏𝐁𝐌 𝐒𝐡𝐚𝐤𝐞𝐨𝐮𝐭: 𝐇𝐨𝐰 𝐕𝐞𝐫𝐭𝐢𝐜𝐚𝐥 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐈𝐬 𝐑𝐞𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐖𝐡𝐚𝐭’𝐬 𝐍𝐞𝐱𝐭 (𝐕𝐈𝐃𝐄𝐎) The PBM market is entering a shakeout phase. In this short video excerpt from DCI’s recent PBM Industry Update webinar, I review: • The changing market shares of the largest PBMs • Why many smaller PBMs still depend on the Big Three • How vertical integration continues to reshape the industry • Why regulation and scale pressures could accelerate consolidation We expect the PBM market five years from now to look very different from today. Watch here 👇 youtu.be/jMA_5lttnYo?si… #PBM #Healthcare #Pharmacy #DrugChannels #HealthPolicy
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Adam J. Fein
Adam J. Fein@DrugChannels·
𝐏𝐢𝐧𝐤 𝐒𝐡𝐞𝐞𝐭: 𝐏𝐁𝐌 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 𝐌𝐚𝐲 𝐁𝐨𝐥𝐬𝐭𝐞𝐫 𝐁𝐢𝐠 𝐓𝐡𝐫𝐞𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 𝐏𝐨𝐬𝐢𝐭𝐢𝐨𝐧 𝐕𝐞𝐫𝐬𝐮𝐬 𝐒𝐦𝐚𝐥𝐥𝐞𝐫 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐨𝐫𝐬 PBM reform may not have the impact many expect. In a recent Drug Channels Institute webinar, we discussed: • How new federal transparency rules could disadvantage smaller PBMs • Why the Big Three are better positioned to adapt As transparency becomes standard, differentiation shrinks. As compensation shifts away from list prices, PBMs move toward fee-based models. (Hello, Net Pricing Drug Channel! #NPDC) The twist: these changes could reduce pressure for further legislation and ultimately strengthen the largest players. More in The Pink Sheet 👇 drugch.nl/42uam0Y #PBM #DrugPricing #HealthcarePolicy
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Adam J. Fein@DrugChannels·
From PHIL: 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐧𝐠 𝐆𝐫𝐨𝐬𝐬-𝐭𝐨-𝐍𝐞𝐭 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐒𝐢𝐧𝐠𝐥𝐞-𝐂𝐡𝐚𝐧𝐧𝐞𝐥 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦𝐬 Learn more about PHIL’s technology solution for brands: drugch.nl/4niITZA Read the article: drugch.nl/4ny2tRS #sponsored
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Adam J. Fein@DrugChannels·
🚨 𝐃𝐫𝐮𝐠 𝐂𝐡𝐚𝐧𝐧𝐞𝐥𝐬 𝐍𝐞𝐰𝐬 𝐑𝐨𝐮𝐧𝐝𝐮𝐩, 𝐌𝐢𝐝-𝐌𝐚𝐲 2026 🚨 Bryce Platt breaks down a timely mix of policy, pricing, and market dynamics: • Are drug launch price analyses built on flawed assumptions? • Pharmacy closures are accelerating—new data reveal where and why • The complex reality of how hospitals are paid for uncompensated care • Key differences between 340B hospitals and federal grantees • A fresh (and unexpected) take: specialty pharmacy as a luxury hotel Dive in: 👇 drugch.nl/4tsyWdy
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Adam J. Fein@DrugChannels·
🚨340𝐁 𝐢𝐧 2026: 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐡𝐢𝐟𝐭𝐬, 𝐏𝐨𝐥𝐢𝐜𝐲 𝐁𝐚𝐭𝐭𝐥𝐞𝐬, 𝐚𝐧𝐝 𝐖𝐡𝐚𝐭 𝐓𝐡𝐞𝐲 𝐌𝐞𝐚𝐧 𝐟𝐨𝐫 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 (Live Video Webinar) 🚨 The 340B Drug Pricing Program remains one of the most complex—and contentious—parts of the U.S. drug channel. On June 12 (12:00–1:30 p.m. ET), I’ll be hosting a live webinar where I’ll break down what’s really happening behind the headlines: • The economics and continued growth of 340B • DCI’s latest data on contract pharmacy trends and market dynamics • How PBMs, manufacturers, and distribution strategies are evolving • Key legal, regulatory, and state policy developments • IRA implications, rebate model proposals, and oversight challenges • the growing role of employers and plan sponsors • Emerging risks and —and what to watch next • And more Clear facts. Sharp analysis. Live Q&A. If 340B affects your business, you won’t want to miss this. Register 👉 drugch.nl/june2026 #340B #DrugPricing #PBM #Pharmacy #DrugChannels
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Adam J. Fein@DrugChannels·
In 2024, Blue Shield of California promised "$500 million in medication savings” with its widely-praised attempt to unbundle the traditional PBM model across nine different vendors. At the time, I was a bit skeptical. (Link in comments.) So, how’s it going? Not so well. According to this @modrnhealthcr interview with Paul Markovich: "Progress toward major savings is proving more gradual than the company anticipated." Blue Shield reports $100 million in savings through "lower administrative costs." But last year, Mr. Markovich revealed that the company had already “spent nearly $100 million getting our pharmacy model set up and working.” So, despite the glowing press coverage in 2024, there's little evidence of net savings (so far). I remain skeptical that Blue Shield has stumbled upon a viable and scalable alternative to the traditional PBM model. In anything, the company's misadventures reinforce a lesson often emphasized by Mark Cuban @mcuban : 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐞𝐧𝐞𝐦𝐲 𝐨𝐟 𝐥𝐨𝐰 𝐜𝐨𝐬𝐭𝐬 𝐚𝐧𝐝 𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲. Full interview: drugch.nl/4d5oxym
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Adam J. Fein@DrugChannels·
From @CareMetx: 𝐓𝐡𝐞 𝐇𝐢𝐝𝐝𝐞𝐧 𝐂𝐨𝐬𝐭𝐬 𝐨𝐟 𝐎𝐯𝐞𝐫-𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐇𝐮𝐛 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐒𝐭𝐚𝐜𝐤 Download "Guide to Building an Agile, Scalable Hub Architecture": drugch.nl/4d3yuNN Read the article: drugch.nl/4uAfSei #sponsored
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Adam J. Fein@DrugChannels·
𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐭𝐲 𝐏𝐡𝐚𝐫𝐦𝐚𝐜𝐲 𝐀𝐜𝐜𝐫𝐞𝐝𝐢𝐭𝐚𝐭𝐢𝐨𝐧: 𝐃𝐂𝐈’𝐬 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐑𝐞𝐯𝐞𝐚𝐥𝐬 𝐚 𝐌𝐚𝐫𝐤𝐞𝐭 𝐚𝐭 𝐚𝐧 𝐈𝐧𝐟𝐥𝐞𝐜𝐭𝐢𝐨𝐧 𝐏𝐨𝐢𝐧𝐭 The specialty pharmacy market keeps growing… but not the way you might think. DCI identified 1,910 accredited locations. But: • Growth has slowed • 40% of pharmacy locations now operated by healthcare providers • Independents down to 29% share (from 59% in 2015) • Two-thirds of specialty revenues flow through a few PBM-affiliated giants Fragmented on the surface. Concentrated underneath. Read our full analysis: 👇 drugch.nl/49q4cCy
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Adam J. Fein
Adam J. Fein@DrugChannels·
𝐏𝐫𝐢𝐨𝐫 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧: 𝐀𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐯𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 = 𝐃𝐞𝐥𝐚𝐲𝐞𝐝 𝐂𝐚𝐫𝐞 New data on ~206,000 brand-name drug #prescriptions with initial prior authorization (PA) rejections: • Only 35% cleared same day • 65% delayed (median = 6 days) • Nearly half (46%) were never approved Multiple PA reviews and added rejection reasons significantly reduced same-day processing: • Refills and complex cases were less likely to move quickly • Medicaid patients and those with multiple conditions had lower approval rates • Wide variation across drugs highlights uneven access 👇 For many patients, an initial PA rejection means delayed (or no) treatment. Source: JAMA Health Forum drugch.nl/48d9r8j
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Adam J. Fein
Adam J. Fein@DrugChannels·
From @ConnectiveRx: 𝐖𝐡𝐞𝐫𝐞 𝐆𝐫𝐨𝐬𝐬-𝐭𝐨-𝐧𝐞𝐭 𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞 𝐀𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐋𝐢𝐯𝐞𝐬 𝐀𝐟𝐭𝐞𝐫 𝐋𝐚𝐮𝐧𝐜𝐡 Register for "Gross-To-Net FOMO: What GTN Dangers Are You Missing Post-Launch?" (free webinar): drugch.nl/4sQ0jxT Read the article: drugch.nl/41R2Gp8 #sponsored
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Adam J. Fein@DrugChannels·
🚨 𝐃𝐫𝐮𝐠 𝐂𝐡𝐚𝐧𝐧𝐞𝐥𝐬 𝐍𝐞𝐰𝐬 𝐑𝐨𝐮𝐧𝐝𝐮𝐩, 𝐀𝐩𝐫𝐢𝐥 2026🚨 Are PBMs steering patients? Are insurers shifting profits? And what’s really behind hospitals’ “fake prices”? This month’s roundup tackles some of the most contentious issues in today’s drug channel: • PBM-affiliated specialty pharmacies: New data shows major differences in patient access—and raises tough questions about steering • MLR profit shifting: Fresh evidence that vertically integrated insurers may be moving margins within Part D • Nonprofit hospitals: A provocative look at the widening gap between mission and financial reality Plus: A behind-the-scenes look at how we build a DCI webinar Read the full roundup here 👇 drugch.nl/3Qv6zgZ
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Adam J. Fein@DrugChannels·
𝐇𝐨𝐬𝐩𝐢𝐭𝐚𝐥𝐬 & 𝐓𝐡𝐞𝐢𝐫 𝐅𝐚𝐤𝐞 𝐏𝐫𝐢𝐜𝐞𝐬 A must-read, hard-hitting piece from Anthony DiGiorgio @DrDiGiorgio on the economics of nonprofit hospitals and the growing gap between their public mission and financial reality. He lays out the extensive subsidy ecosystem supporting hospitals: • Property and sales tax exemptions • Public funding (DSH payments, GME, research support) • 340B Drug Discount Program revenues • Market power–driven pricing from consolidated health systems …among others Then comes the key question: "After all of those subsidy streams, what exactly is still unfunded"? As he puts it, hospitals should provide a true accounting: • What is the net Medicaid shortfall after supplemental payments? • What is the real value of tax exemptions? • Where does 340B revenue actually go? • How are funds allocated across executive pay, administration, expansion, reserves, M&A, and lobbying? Until we see that level of transparency, claims about underfunding deserve more scrutiny. Strong, provocative piece. 👉 drugch.nl/3OgIl9B
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Adam J. Fein@DrugChannels·
From @GoodRx: 𝐁𝐞𝐲𝐨𝐧𝐝 𝐅𝐨𝐫𝐦𝐮𝐥𝐚𝐫𝐲 𝐀𝐜𝐜𝐞𝐬𝐬: 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐚 𝐒𝐜𝐚𝐥𝐚𝐛𝐥𝐞 𝐏𝐡𝐚𝐫𝐦𝐚𝐜𝐞𝐮𝐭𝐢𝐜𝐚𝐥 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐟𝐨𝐫 𝐃𝐢𝐫𝐞𝐜𝐭-𝐭𝐨-𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐚𝐧𝐝 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐫 𝐂𝐡𝐚𝐧𝐧𝐞𝐥𝐬 Learn about GoodRx Pharma Direct: drugch.nl/4tdL1nH Read the article: drugch.nl/4u3nlSX #sponsored
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Adam J. Fein@DrugChannels·
🚨𝐌𝐢𝐧𝐧𝐞𝐬𝐨𝐭𝐚’𝐬 340𝐁 𝐇𝐨𝐬𝐩𝐢𝐭𝐚𝐥𝐬 𝐌𝐚𝐤𝐞 𝐎𝐧𝐞 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐌𝐨𝐫𝐞 𝐅𝐫𝐨𝐦 340𝐁 𝐓𝐡𝐚𝐧 𝐓𝐡𝐞𝐲 𝐒𝐩𝐞𝐧𝐝 𝐨𝐧 𝐔𝐧𝐜𝐨𝐦𝐩𝐞𝐧𝐬𝐚𝐭𝐞𝐝 𝐂𝐚𝐫𝐞 🚨 Minnesota’s latest #340B data tell a striking story. A new Drug Channels analysis by Bryce Platt finds nonprofit hospitals in the state generated $1.34B in 340B profits in 2024—nearly $1B more than they spent on uncompensated care. Even more notable: Commercial and Medicare plans funded the majority of those profits. The big question remains unanswered: Where is the money going—and who is benefiting? Worth a closer look 👇 drugch.nl/4csG9VG #340B #DrugPricing #HealthcarePolicy #DrugChannels
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Adam J. Fein@DrugChannels·
𝐓𝐡𝐞 𝐓𝐨𝐩 15 𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐭𝐲 𝐏𝐡𝐚𝐫𝐦𝐚𝐜𝐢𝐞𝐬 𝐨𝐟 2025: 𝐏𝐁𝐌-𝐀𝐟𝐟𝐢𝐥𝐢𝐚𝐭𝐞𝐝 𝐏𝐡𝐚𝐫𝐦𝐚𝐜𝐢𝐞𝐬 𝐃𝐨𝐦𝐢𝐧𝐚𝐭𝐞 𝐖𝐡𝐢𝐥𝐞 𝐇𝐞𝐚𝐥𝐭𝐡 𝐒𝐲𝐬𝐭𝐞𝐦𝐬 𝐚𝐧𝐝 𝐈𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐬 𝐆𝐚𝐢𝐧 𝐆𝐫𝐨𝐮𝐧𝐝 Three companies now account for two-thirds of specialty pharmacy revenues. Drug Channels Institute’s latest analysis shows that PBM-affiliated specialty pharmacies remain firmly in control—but the market is shifting at the margins: • Health systems are expanding rapidly • A handful of independents are outperforming • Traditional retail players are losing share What’s driving these changes—and where is the market headed next? We break it all down here 👇 drugch.nl/41G6Z6w #SpecialtyPharmacy #PBM #Healthcare #DrugChannels #Pharmacy
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Adam J. Fein@DrugChannels·
From @ClaritasRx: 𝐓𝐡𝐞 𝐎𝐦𝐧𝐢𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐆𝐚𝐩: 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐂𝐑𝐌 𝐨𝐟 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐟𝐨𝐫 𝐏𝐚𝐭𝐢𝐞𝐧𝐭 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 Download "The Omnichannel Gap: Building the CRM of the Future for Patient Services: drugch.nl/47SoJzb Read the article: drugch.nl/4tWkWtd #sponsored
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Adam J. Fein@DrugChannels·
𝐍𝐞𝐰 𝐞𝐯𝐢𝐝𝐞𝐧𝐜𝐞 𝐨𝐟 𝐩𝐫𝐨𝐟𝐢𝐭 𝐬𝐡𝐢𝐟𝐭𝐢𝐧𝐠 𝐢𝐧 𝐯𝐞𝐫𝐭𝐢𝐜𝐚𝐥𝐥𝐲 𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞𝐝 𝐡𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 A new (not yet peer-reviewed) study offers compelling evidence that vertically integrated insurers strategically shifted profits within the Medicare Part D program. The mechanism: transfer pricing between insurers and their affiliated pharmacies in response to Medical Loss Ratio (MLR) constraints. The authors compare price changes for the same drug and the same insurer across: • Affiliated pharmacies vs. • Non-affiliated pharmacies Key findings: • Prices paid to affiliated pharmacies rose ~9.5% more per claim than at non-affiliated pharmacies • The effect is stronger among insurers with lower MLRs, i.e., tighter profit constraints • This behavior increased gross Part D drug spending by an estimated $1.2 billion from 2014 to 2016 Bottom line: Vertical integration may enable insurers to shift margins internally, potentially undermining the intent of MLR regulation introduced by the Affordable Care Act. The paper isn’t peer reviewed yet, but the methodology and results are worth a close look. 🔗 Full article: drugch.nl/426N1SB
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Adam J. Fein@DrugChannels·
From @AssistRx: 𝐓𝐡𝐞 𝐇𝐢𝐝𝐝𝐞𝐧 𝐏𝐢𝐭𝐟𝐚𝐥𝐥𝐬 𝐨𝐟 𝐇𝐮𝐛 𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧𝐬—𝐚𝐧𝐝 𝐇𝐨𝐰 𝐭𝐨 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐞 𝐓𝐡𝐞𝐦 Download AssistRx’s Hub Transition Process Checklist: drugch.nl/4cwefba Read the article: drugch.nl/4tidBnG #sponsored
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