New York Passes Much-Anticipated Law Authorizing Pharmacy Shared Services Arrangements

Newsletter

On November 22, 2024, the Governor of New York signed into law a closely watched bill that expressly authorizes pharmacy shared services arrangements in the state. These models were not previously addressed in New York’s statutes or regulations, and there was conflicting guidance regarding the permissibility of these models in the absence of laws expressly governing such arrangements. The legislation introduces new, defined parameters for pharmacy shared services arrangements.

As detailed in a previous alert, the New York Board of Pharmacy’s (“Board”) position on these models has shifted over the years, creating a level of confusion over permitted and prohibited activities if more than one pharmacy takes part in the processing and/or fulfillment of prescriptions. As such, the bill’s passage brings long-awaited certainty to pharmacy stakeholders operating or intending to operate shared services arrangements in New York.

Notable shared services requirements of the new law include:

  • Labeling Requirements. Each pharmacy involved in the dispensing and filling of the prescription must be listed on the label.
  • Patient Consent and Notice. Pharmacies are required to notify patients if their prescription will be processed or filled off premises. Critically, pharmacies must obtain a one-time consent from the patient to fill current and future prescriptions via shared pharmacy services. This consent may be obtained in writing or electronically. Patients must have the ability to opt-out.
  • Licensure. Out-of-state pharmacies participating in a shared services arrangement must obtain nonresident pharmacy licensure in New York if (1) engaged in a shared services arrangement with a New York resident pharmacy and/or (2) if the shared services arrangement results in the processing or fulfillment of prescriptions written for New York residents.
  • Tracking System. Pharmacies must identify and keep records each pharmacy and individual participating in the filling or processing of the prescription.
  • Policies and Procedures. Pharmacies are also required to develop and adhere to detailed joint policies and procedures outlining, among other items, responsibilities for each pharmacy participating in shared pharmacy services, maintenance of patient records, data sharing parameters, and patient notification.

Note also, the law addresses remote work by pharmacists. Specifically, pharmacists “employed or under contract with a pharmacy, acting within their respective scopes of practice, may access that pharmacy’s electronic database from inside or outside the pharmacy to perform prescription or order processing functions.” Controls must be in place to protect the confidentiality and integrity of patient information, and no information may be downloaded, duplicated, or removed from the pharmacy’s system.  

The law will become effective on May 22, 2026 (eighteen months after the date of enactment), allowing pharmacies ample time to design new or modify existing operational models to comply with New York’s requirements. If you or your organization has questions or would like to further discuss potential impacts of the new law, please contact your Quarles attorney or:

Follow Quarles

Subscribe Media Contact
Back to Main Content

We use cookies to provide you with the best user experience on our website and to analyze statistics related to our website. To understand more about how we use cookies, or for instructions to change your preference and browser settings, please see our Privacy Notice. Please note that if you choose to reject cookies, doing so may impair some of our website's functionality.