Industry Analysis & Industry Trends
Rising drug costs, higher consumer spending on healthcare and increasing prescription drug use drove up revenue for the Pharmacy Benefit Management industry over the five years to 2015. Rising drug costs caused health plan sponsors to increasingly turn to PBMs for cost management services. In turn, this trend drove industry operators to consolidate to better leverage larger retail pharmacies, customer networks and drug use data to negotiate better cost savings with drug manufacturers. Growth prospects for PBMs are strong; IBISWorld projects that industry revenue will expand steadily over the five years to 2020.... purchase to read more
Industry Report - Industry Locations Chapter
In the Pharmacy Benefit Management industry, a widespread geographic reach is essential for the proper distribution of prescription drugs to retail pharmacies and other clients. In becoming a primary healthcare source for many healthcare organizations, industry establishments are more capable of negotiating with large insurance and pharmaceutical companies if they are able to present nationwide coverage and accessibility.
Easy access to markets has become a key to success because it allows industry operators to more easily take advantage of economies of scale. The strategic placement of a company's operations can decrease delivery costs, which allows a PBM to not only offer more competitive prices but also improve its profit margins... purchase to read more