Partner With a PSAO and Gain a Seat at the Table

Last updated Dec 11, 2020 | Pharmacy Management

This month, we sat down with Keith J Haddix Jr., RPH, to hear more about his decision to partner with Sav-Mor.

Keith realized that he needed to keep up with the changing pharmacy landscape and he couldn’t do it on his own. He took advantage of a discount Sav-Mor was offering and saved $20,000 when he decided to partner.

PSAO Partnerships in a Changing Pharmacy Landscape

With lower reimbursement rates and DIR fees, it’s more important than ever for independent pharmacists to find solutions and form partnerships that will help them overcome the challenges they face. For Haddix, that meant a strong partnership with a pharmacy services administration organization (PSAO). 

PSAOs are cooperative networks designed to help local and small chain pharmacies compete with big-box stores in the pharmaceutical marketplace. Their main function is to negotiate with third-party payers and pharmacy benefit managers (PBMs) and give pharmacies access to pooled purchasing power. Some PSAOs also provide back office support for business growth or partner with vendors to create system packages.

When a pharmacy signs a PSAO agreement, they join thousands of other pharmacies to access benefits like higher reimbursement rates and better contracts to preferred vendor discounts.

Haddix has partnered with Sav-Mor for over 25 years and owns two Sav-Mor locations, Gibraltar Sav-Mor and Bayview-Riverside Sav-Mor in Michigan

“One of the most important and time-saving elements of the Sav-Mor PSAO group affiliation is the third-party reconciliation and aging reports,” Haddix said. “This service saves the store owner many hours of time per week that can be spent on providing care and counseling and interacting with patients and customers.”

About Sav-Mor Pharmacy Services

Sav-Mor has been offering personalized pharmacy services and support since 1957. A core member-owned buying group and PSAO, Sav-Mor has over 100 affiliate locations and over 450 independent pharmacy network members in 22 states.organization

“We know one size does not fit all,” said Yvonne Gallagher, President of Sav-Mor Drug Stores. “We take pride in offering owners the ability to customize the services that they receive to be specific to their needs. By doing this, we allow them to select what they need and create their own package that best suits them. This makes us unique.”


Becoming a Sav-Mor Partner

In 2017, Sav-Mor pharmacy members received over $400 million in PBM payments, saved $4.28 million in audit recovery, and averaged $9,500 a month in savings on generic pricing.

As partners, pharmacists have full access to all Sav-Mor resources and tools, which include PBM contracting, customer software platforms, training programs, claims reconciliation systems, policies and procedures, and assistance with desk and onsite audits.

“The process of becoming a member has never been easier,” said Sav-Mor Director of Store Operations Brandon Peiffer. “We know choosing a PSAO or buying group can have a profound impact on a pharmacy, both financially and functionally. This is why we focus on what our independent owners need to be successful.”

Pharmacists who partner with Sav-Mor can also benefit from group pricing and the company’s relationships with suppliers, as well as Sav-Mor’s proprietary software, iQ Smart Technologies. This software helps pharmacies analyze pharmacy data, including patient retention statistics, and allows for other custom reporting.

“I am proud to be a Sav-Mor core pharmacy owner, and I truly believe that my success in business for 37 years can be attributed, at least in part, to my involvement with Sav-Mor.” says Haddix. 

At Digital Pharmacist, we’re also proud to help Sav-Mor Pharmacy Services transform pharmacy businesses. Since 2017, we’ve powered Sav-Mor’s digital solutions and pharmacy partners with our customizable product suite.

Learn more about Sav-Mor’s PSAO membership program and how they can support your pharmacy, give them a call at (800) 544-8188, or email

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