PHOENIX — Arete Pharmacy Network LLC has acquired RxPride LLC, a pharmacy services administrative organization (PSAO) formerly owned by Smart-Fill Management Group Inc.
Arete, which announced the deal Friday, said the addition of RxPride furthers its efforts to broaden its geographical footprint to extend the benefits of its PSAO programs and services to more independent and small-chain pharmacies. Arete was launched in March as a joint venture of H.D. Smith’s Third Party Network and American Associated Pharmacies’ United Drugs.
“Since the establishment of Arete Pharmacy Network, our efforts have been geared toward building a solid foundation for growth that will support independent pharmacies in their own efforts to improve quality performance and profitability,” Arete chief executive officer Rob McMahan said in a statement. “Through the hard work and diligence of our staff, as well as the support of our current member pharmacies, Arete Pharmacy Network is poised to achieve the next level of growth with the acquisition of RxPride.”
In a tweet on Friday, pharmacy supply chain expert Adam Fein of the Drug Channels Institute described Arete’s acquisition of RxPride as “more long overdue PSAO consolidation.”
Arete noted that its managed care contracting model “fully appreciates the delicate balance” between meeting the needs of independent community pharmacies and pharmacy benefit managers (PBMs), as well as other third party payers.
“The expanded reach of Arete Pharmacy Network’s programs and services will provide the economies of scale and efficiency gains that an independent pharmacy requires for success in today’s healthcare environment,” stated Jeremy Johnson, chief operating officer of Austin, Minn.-based Smart-Fill Management Group. “Based on the demonstrated value of its services, Arete Pharmacy Network has earned a reputation as a quality PSAO, and we are confident that the independent pharmacies previously served by RxPride are in very good hands.”