The health of American citizens relies largely on the quality of prescription drugs they take. Even though the United States takes every precaution to secure its medication supply chain, there are still certain issues that can arise. In order to combat the potential risks of an unsecured supply chain, the National Association of Boards of Pharmacy (NABP) implemented a Verified-Accredited Wholesale Distributors Program (VAWD) to ensure pharmacies across America are only dispensing the highest quality medications to their customers.
Before issuing a VAWD certification to wholesalers, the NABP conducts a thorough inspection of the facilities and its distribution practices. Even though there is a lot of preparation to be done, it is worth it for pharmacies to keep their customers safe and to continue turning a profit. As of 2018, there are 634 facilities in America with the VAWD accreditation.
What is VAWD?
The VAWD is a voluntary program managed by the NABP; it was established in 2004 with the purpose of protecting consumers from counterfeit prescription drugs. Each state has varying requirements on how to become a wholesaler, which can sometimes interfere with conducting business across state lines. It’s also important to note that the VAWD certification is completely different from the SOPs set by state laws, and it is mandatory for wholesalers to follow a stricter set of SOPs in order to receive their certification. This guarantees they are being held accountable for the prescription drugs they distribute to pharmacies.
Getting a VAWD certification is critical for wholesalers because it allows them to meet standards in all 50 states. Once a wholesaler is approved, they will have the following available for pharmacies to review:
Why Does VAWD Matter?
There are a few reasons why being VAWD certified matters, such as customer safety, quality assurance, and financial protection.
How Does the VAWD Certification Process Work?
To get VAWD accredited, wholesalers must follow policies and procedures set by the NABP to reflect their distribution practices. They will conduct a full inspection of the facilities, SOPs, and background checks. In some cases, wholesalers might even be required to follow more SOPs to ensure better quality products.
It usually takes a total of three to six months to be accredited; wholesalers can prepare for the inspection by:
There is also assistance available for wholesalers who are in the process of getting accredited but need a little more guidance. Note that while consultants are available to help, they cannot act as representatives during the application process. Working with a consultant does not guarantee accreditation - only meeting set requirements does. It is recommended that wholesalers do their research prior to hiring a consultant, as some are not sufficiently qualified.
Why Pharmacies Should Only Work With VAWD-Certified Wholesalers?
Drug distribution is a complicated process that often involves numerous parties. It’s possible for ingredients to be sourced in a foreign country, then be packaged and re-packaged a few times in other countries. Once they are ready for distribution, the drugs can be sent to multiple different wholesalers before making it to the pharmacy. The fact that the drugs change hands so many times increases the chances of counterfeiting and contamination. This could happen due to the products being stored and transported in unsanitary conditions or in a non-temperature-controlled environment. There is also an additional risk of false documentation and illegal trading. The VAWD program has been put in place to prevent such issues.
Pricing is also something for pharmacies to consider when working with wholesalers. Fees and fewer reimbursements can get in the way of a pharmacy turning a profit. As a result, the pharmacy might be inclined to purchase products from a wholesaler offering cheaper prices. However, if the wholesaler is not VAWD-certified, the pharmacy purchasing from them could end up in more trouble than if they worked with someone who was accredited.
Lastly, working with a VAWD-certified wholesaler protects a pharmacy’s relationship with Optum, a company that is responsible for processing nearly 20 percent of U.S. prescriptions. As of 2016, Optum requires pharmacies to work with VAWD-certified wholesalers; if this is not met, pharmacies risk being audited and potentially losing the contract. In the long term, paying penalties and additional clawbacks can lead to financial loss.
The VAWD program was established to protect Americans from being sold poor-quality prescription drugs. With a complex distribution channel, these drugs can easily be subject to counterfeit and contamination. VAWD-certified wholesalers can easily be verified by the seal on their website and electronic T3 transaction statements. By doing their due diligence, pharmacies can protect both their customers and themselves by exclusively working with VAWD-certified wholesalers.
Have further questions about VAWD accreditation? Please contact the experts at Dickson.