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Key Notes about Insurance Contracts and Licensing when Buying a Pharmacy

We have helped helped with the acquisition of nearly 100 pharmacies. As such we have experienced a lot when it comes to obtaining licenses and insurance contracts when buying a pharmacy.

  • You will most likely need a power of attorney, which will allow you to operate on the previous owner’s contracts and licenses, whether you do a stock sale or asset sale.
  • A stock sale does not necessarily mean you will just keep the current owner’s licenses and contracts. In some states the state board of pharmacy and/or DEA will require new licenses regardless of stock or asset sale. If you have to get a new license it will also require new insurance contracts.
  • Look out for Heat Zones. These are Medicare exclusion areas where you will have to wait up to one year to receive new insurance contracts. In most cases a stock sale will help you prevent any disruption.
  • The seller needs to notify DEA 14 days prior to sale.
  • Call your state board and your state’s Medicaid to determine if you can operate on a Power of Attorney and if you have to notify either one of them prior to closing.


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