September 2011

The newsletter of Smith Drug Company A Division of J M Smith Corporation Spartanburg, SC - Paragould, AR - Valdosta, GA

Thank You!

September 2011

Page 1 R

Dear Valued Customer, For those of you who attended the Smith Drug Company CE & Trade Show, THANK YOU SO MUCH for supporting this program. For all of you that were unable to attend, THANK YOU for taking the time looking over the 200 plus pages in the trade show catalog and turning in your orders and please try to attend next year! We came back with enthusiasm knowing that we have tried to provide an avenue for your pharmacies to save money and learn of other opportunities Smith has to offer.

This year the theme for the Trade Show was “Celebrating Being an American”. Our President Ken Couch welcomed everyone wearing his George Washington costume. Rick Simerly wore his Uncle Sam costume, while Christa was lady Liberty. To open the ceremony the ROTC from West Ashley High School in Charleston presented the colors while two students sang our national anthem. It was a very moving and exciting way to kick off the trade show.

Customers began pouring in the newly renovated Charleston Marriott ballroom at 2:00 on Friday afternoon. Along with regular pharmacy products, over 130 vendors were in attendance with specialty items from e-Cigarettes to new As Seen on TV to new pharmaceuticals to several new vendors!

Our Continuing Education offered pharmacists and technicians up to 14 CEUs. Most of the classes were nearly filled to capacity.

In addition to the Continuing Education and Trade Show, customers were entertained by an American legend, Elvis Presley, portrayed by Tom Bartlett, in support of out theme “Celebrate Being an American” he sang The Battle of the Republic and America the Beautiful which spurred a standing ovation plusa roaring round of applause.

It is with complete gratitude that we thank all vendors and customers for participating and attending the 2011 Smith Drug Company CE & Trade Show and look forward to seeing you at the Grove Park Inn in Asheville, NC in 2012 for another successful and fun event!

“The Sales and Marketing Team”

PS - Please remember those who perished on 9/11 and the women and men fighting daily so that we can celebrate our freedom.

Page 2 TABLE OF

The newsletter of Smith Drug Company CONTENTS A Division of J M Smith Corporation Spartanburg, SC - Paragould, AR - Valdosta, GA

Pharmacy First Press Release 4 - 5 HealthWise™ Circular Program QR Codes 6 DollarWise™ Program Good Sense® Controlled Label Program NCPA News 7 Greeting Cards Program Continuing Education Tinsley Bible Pharmaacy 8 Gift and Trade Show Celebrates 100 years in business Rx QuikShip™ Oliver Drug Enters 51st Year 9 GeneRx QuikShip™ Third Party Station Industry News 10 Pharmacy First DrugSmith™ Monthly Newsletter Accu-Chek 11 Smith Weekly e-Blast Remembering 9/11 13 Diabeticare™ Program (Medicare Vendor Contracts) 2012 CE and Trade Show 16 Perfect for Profit Catalog Hamacher Retail Zone Pricing Home Health Care Catalog HealthWise Signage Program Smith Gift Box Gift Category •••Important Notice Concerning••• Vials and Vitamin Program Nystatin Suspension Direct Mail Advertising Well Staffed Customer Service Excellent Service Levels Due to the recent Store Fixture Program discontinuation of Nystation Merchandising Services Oral Suspension by Qualitest who supplied appx 90% of

9098 Fairforest Road the market, our current Spartanburg, SC 29301 supplier will not be able (800) 572-1216 to supply us or the market 1104 Jones Road at full capacity for an Paragould, AR 72450 additional 4 to 6 weeks while (866) 346-9147 they acquire API and bring 1500 Commerce Drive manufacturing up. Valdosta, GA 31601 (800) 572-1216

Page 3 PRESS RELEASE

FOR IMMEDIATE RELEASE Pharmacy First and Frier & Levitt, LLC Announce Alliance

Overland Park, KS – May 12th, 2011 - Pharmacy First (“PF”) and Frier & Levitt, LLC (“FL”) are proud to announce a new strategic alliance. FL has become the preferred legal vendor to PF’s network of over 5,000 independent community pharmacies. FL is a national boutique healthcare law firm specializing in PBM and Medicare audit issues as well as pharmacy and regulatory issues. FL maintains a pharmacy membership program called “PhAIR”, where the firm provides discounted legal services and protection against PBM audit abuse. PhAIR’s many benefits include a review and one hour strategy session with an FL attorney after a completed audit to discuss a plan of action. Members of the PF network will receive a discount off the usual PhAIR membership. Visit FL’s website at www.pbmauditlawyers.com .

Brian Huckle RPh, CEO of Wholesale Alliance LLC / Pharmacy First, says “making available to our network members the expertise of Frier & Levitt and their PhAIR program is an added boost to those programs already offered by Pharmacy First. In today’s environment of multiple PBM audits, we feel FL can directly aid our network pharmacies with their timely advice.”

About Pharmacy First: Headquartered in Overland Park, Kansas, Pharmacy First holds a unique position in the retail pharmacy marketplace by providing independent retail and regional chain pharmacies nationwide with access to a menu of retail programs that include manufacturer-sponsored, performance-based revenue programs, third-party contracting and reconciliation, and a fully transparent PBM. Created fourteen years ago by the Wholesale Alliance LLC, a national consortium of regional pharmaceutical distributors, and the network currently has more than 5,300 participating retail pharmacies in all 50 states and Puerto Rico. Please visit www.pharmacyfirst.com or call 888-800- 3784 for more information.

About Frier & Levitt, LCC: Frier Levitt (“FL”) is a boutique health care law firm representing thousands of community and specialty pharmacies across the United States in all aspects of pharmacy law. FL has developed a reputation amongst PBMs as relentless and ethical legal advocates of independent pharmacies. FL’s Pharmacy Audit Intervention and Response (“PhAIR”) program affords community pharmacies unique and discounted legal services for a low annual fee. PhAIR’s many benefits include a review and one hour strategy session with an FL attorney after a completed audit to discuss a plan of action. Please visit our web sites for more information; www.pbmauditlawyers.com or give us a call at 1-888- Levitt1 (538-4881) # # #

Page 4 july 2011

A monthly update from the Pharmacy First national network of community pharmacies. www.pharmacyfirst.com 1-888-800-DRUG (3784) A Message from FDA Track & Trace of Prescription Products Chief Executive Officer - In February the FDA held a workshop to discuss its track & trace initiative. In case there is interest in this, you can download public comments, which were recently made avail- Just some thoughts on the “news of the day”: able from this meeting, as well as the PowerPoint presentations here: http://www.asapnet.org/downloads/FDA_Track_Trace_Archive.zip (ASAP e-Mail 6/2/11)  Drug Store News announced this AM that prices for the Top 10 branded diabetes drugs have risen faster at Walmart and New Medicare Part D Notice for Pharmacies Kmart than at other retailers. Gee, do you think it’s due to their $4.00 generic pro- - The Centers for Medicare & Medicaid Services has announced that pharmacies now will grams and the realization that they still be required to provide a written standardized notice to Part D beneficiaries when their need to pay their pharmacists a competi- prescription cannot be filled. The purpose of this notice is to provide enrollees with infor- tive salary? How many $4 scripts need to mation about how to contact their Part D plans to request a coverage determination, in- be dispensed to cover a pharmacist pay? cluding a request for an exception to the Part D plan's formulary. The notice reminds enrollees about certain rights and protections related to their Medicare prescription drug  News this week from Walgreens claims benefits, including the right to receive a written explanation from the drug plan about why they are willing to walk away from billions a prescription drug is not covered. Previously, it was sufficient for pharmacies to post a of dollars with Express Scripts. By most sign in the pharmacy with such a notice. (NCPA e-News Weekly 6/7/11) counts it is clearly a negotiating ploy with 6 months to play. Don’t you wish inde- pendents had the luxury to say ‘no’…? Lilly For Better Health Launches Multi–Channel Platform  What other industry, besides the health insurance industry, allows one provider to - LILLY for Better Health, a program of Lilly USA, LLC, launched a multi-channel platform hide the amount it will pay to another pro- focused on health information. The platform includes patient education materials, Lilly vider? Plus be able to change it as they programs and partnerships, a website –www.lillyforbetterhealth.com - and a Lilly Health see fit. It’s an illusion that even David Channel on YouTube. Copperfield couldn’t pull off. Is this type of practice corrected in the new Federal Healthcare legislation…? CMS to use Predictive modeling to Detect Fraud

 Congrats to New York State pharmacists -The Centers for Medicare and Medicaid Services (CMS) will use predictive modeling soft- for their legislative ‘any willing provider’ ware to detect potential fraud in the two government healthcare benefit programs before victory. Why hasn’t this been passed in paying claims. The system, which CMS will start using on July 1, will use tools similar to every state? those used by credit card companies. Northrop Grumman is supplying the information technology that supports the program. (CMS Press Release 062011) Hope everyone had a safe and restful July 4th holiday! “Script Your Future” Campaign Brian Huckle RPh – The National Consumers League (NCL) has launched a multiyear public education cam- [email protected] paign to raise awareness about the importance of medication adherence. The campaign targets consumers and health professionals nationwide. Plus they have partnered with over 80 public and private stakeholders organizations to plan, develop, and implement the campaign. For more information, including adherence tools and campaign resources, go to http://www.scriptyourfuture.org/hcp/index.php/materials. ( APhA Pharmacy Today April ’11)

Product Alert—DUAC Have a suggestion, comment, or complaint about one of Pharmacy First’s programs? – DUAC Topical Gel is still available, but DUAC CS has been discontinued. There is no E-mail your thoughts and feedback to the below therapeutically equivalent generic substitute for DUAC Topical Gel. If written as “DUAC address and we’ll look into it: AS”, please dispense DUAC Topical Gel (45gm). Correct NDC # 00145-2371-05 / WAC$172.82. (Stiefel Release) [email protected]

Page 5 QR Codes

QR code (abbreviated from Quick Response code) is a specific matrix barcode (or two-dimensional code) that is readableA by dedicated QR barcode readers and camera telephones. The code consists of black modules arranged in a square pattern on a white background. The information encoded may be text, URL, or other data. Common in Japan, where it was created by Toyota subsidiary Denso-Wave in 1994, the QR code is one of the most popular types of two-dimensional barcodes. The QR code was designed to allow its contents to be decoded at high speed. The technology has seen frequent use in Japan, the Netherlands, and South Korea, while the rest of the world has been slower in the adoption of QR codes.

Although initially used for tracking parts in vehicle manufacturing, QR codes now are used in a much broader context, including both commercial tracking applications and convenience-oriented applications aimed at mobile phone users (termed mobile tagging). QR codes may be used to display text to the user, to add a vCard contact to the user’s device, to open a Uniform Resource Identifier (URI), or to compose an e-mail or text message. Users can generate and print their own QR codes for others to scan and use by visiting one of several paid and free QR code generating sites or apps.

QR codes storing addresses and Uniform Resource Locators (URLs) may appear in magazines, on signs, buses, business cards, or almost any object about which users might need information. Users with a camera phone equipped with the correct reader application can scan the image of the QR code to display text, contact information, connect to a wireless network, or open a web page in the telephone’s browser. This act of linking from physical world objects is termed hardlinking or object hyperlinking. QR codes can be utilized in Google’s mobile Android operating system via both their own Google Goggles application or 3rd party barcode scanners like ZXing or Kaywa. The browser supports URI redirection, which allows QR codes to send metadata to existing applications on the device. Nokia’s Symbian operating system is provided with a barcode scanner, which is able to read QR codes, while mbarcode is a QR code reader for the Maemo operating system. In the Apple iOS, a QR code reader is not natively included, but more than fifty paid and free apps are available with reader and metadata browser URI redirection ability. With BlackBerry devices, the App World application can natively scan QR codes and load any recognized Web URLs on the device’s Web browser. Custom qr codes are now beginning to emerge whereby brands are able to add their logos and designs with the traditional qr code. source:wikipedia

“A QR Code (Quick Response Code) is a specific matrix barcode not unlike the normal barcodes you find on items. They hold information the same as a normal barcode.

A QR code is used to hold metadata such as a URL, contact information or just simple text. These codes are readable by both dedicated QR Barcode readers and most smartphones (with cameras) on the market today via a simple app that is available on your phones marketplace.

Currently there are apps available for Android, Windows Mobile, IPhone, Blackberry and many others via your phones marketplace/app store. Simply search for QR code and pic the app that is to your liking.” Page 6 Major Inprovements to smithdrug.com

Smith Drug has made some major improvements to our website to help customers get valuable information and “stay in the loop”. From the latest pharmaceutical updates and drug recalls, the Smith Drug website is there to help you find the information that you need to keep yourself and your customers up to date and aware of the latest news in the pharmaceutical industry.

One of the latest additions to our website is the online ebook. Customers can now visit the site and have access to our latest HME catalog and BargainWise catalog at the click of a mouse with many more to come. Our online ebooks are completely searchable via keyword and are as easy to navigate as a magazine but with more options. Some of the options include a clickable table of contents, the ability to save the entire ebook to your computer, print particular pages and search the entire document for that one certain item you are in need of. Best of all they are all accessible from any PC with internet access.

Visit the Smith Drugs website and bookmark us today at http://www.smithdrug. Home Page com. While you are there take a tour of our facility, check on the latest drug recalls, get updates for upcoming trade shows and conventions or browse through one of our online ebooks. Whatever you choose, smithdrug.com will be there to keep you informed. (coming soon: Smith Drug mobile website: “Stay in the Loop” on the go from your web enabled smartphone.)

Tour the Spartanburg Facility New! Ebook!

Coverage Area

State Pharmacy Conventions Calender

Page 7 Tinsley Bible Pharmacy Celebrating their 100th Anniversary Tinsley –Bible Drugs celebrated their centennial anniversary with a cruise-in for classic and collector cars on May 21st of this year. The event was celebrated by the entire town with food vendors, music, and raffle prizes throughout the day. Centennial tee shirts, mugs, and coins were sold and given away as door prizes throughout the day.

Tinsley-Bible Drugs has been serving the community of Dandridge, Tennessee’s second oldest town, since 1911. Founded by the town medical doctor, P.A. Tinsley and his nephew, pharmacist Walter “Prock” Tinsley, the store has been a favorite gathering spot for generations. When Prock died in 1933, pharmacist Lloyd “Doc” Bible purchased his share of the company stock from Mr. Tinsley’s widow. The store became the Tinsley-Bible Drug Co and has retained the name to date. Pharmacist Don Rose purchased the store in 1986 and continues to operate the store today.

The town of Dandridge was recently named one of the country’s “Dozen Distinctive Destinations” by the National Trust for Historic Preservation.

The pharmacy at Tinsley-Bible offers a money saving generics program, custom fit diabetic shoes, medication schedule packaging, and flavoring for children’s medications. The store expanded its pharmacy department in 2007 and is now fifty percent larger than its original size; however, the front of the store has seen few changes aside from new tile floors and display fixtures.

Soda fountain operator Peggy Fain has been a fixture at Tinsley Bible for over 20 years. Known as “The Mouth of The South” by locals, there is no need to read the local newspaper… just stop by for breakfast with Mrs. Peggy and you will know everything that has happened over night.

Peggy prepares daily specials for her customers, including pinto beans with cornbread, chili, spaghetti, and homemade soups. But the lunch counter is most famous for their Bible Burgers, a quarter pound patty of fresh ground beef on a large steamed bun with all the trimmings. Hand dipped ice cream, milkshakes, malts, sundaes, and old fashioned sodas complete the menu.

Tinsley Bible Drugs is always a popular spot to escape the heat with an ice cream treat.

Page 8 Maintaining the “personal touch” has been the goal of Oliver Drug Store since 1960. “This is a family business where we know our customers and treat them like family,” Steve Oliver said. “We have four generations still Oliver Drug Going in to 51st Year! coming in here to do business with us, and that is the key to our longevity.”

Oliver Drug was founded by Steve’s father, Joe Oliver in the fall of 1960 when he moved his family from Grenada, MS to Memphis. Originally opened as Oliver Rexall Pharmacy, it was located on the corner of Raines and Elvis Presley in Whitehaven.

“I remember bopping through the gates of Graceland in my beat-up Jeep to make deliveries,” recalls Steve Oliver the pharmacist and owner.

“The King” was not the only famous customer that came through the doors. The day before the Martin Luther King assassination, James Earl Ray came in and bought shaving cream and a Gillette® razor blade. The next thing we know the FBI was in our store interrogating us since our name was on the bag of product they found in this room in Memphis.

In 1974, Oliver Drug’s opened its second location in Southaven. In 1994 the store moved from it’s 7200 square foot building to a freestanding, 2000 square foot building. “At this location we had one of the first drive through pharmacies in DeSoto County. “ Oliver said. Today the store sits on Physicians Lane in a 3200 square foot building.

Steve runs the store with the help of his 81 year father, who still comes to work everyday. The store has eight other employees of whom 2 have worked since they were in high school.

Oliver Drug is the last independently owned store in operation in Southaven.

King James Bible Marks 400th anniversary

If you have a Bible in the house, chances are it's a King James Version in Elizabethan English. Published first in 1611, most readers say the English is beautiful. Of the 89 percent of U.S. adults who own a Bible, 67 percent own a King James version.

Page 9 Industry News

DME :Supplies Will Be Billed Prospectively Debit Card Swipe Fee Change Coming

Starting August 2, 2011, DME supplies provided on The Federal Reserve Board has issued a new regulation for debit a recurring basis must be billed prospectively, not card interchange charges, also known as swipe fees. retrospectively, according to the Centers for Medicare & Medicaid Services. This means that a supplier cannot deliver The regulation increases the fee cap from the 12-cents-per- a supply, wait to see how much is used and then bill for the transaction contained in a draft regulation to between 21 and used portion at the end of the month. 24 cents in the final version. (The current average swipe fee is 44 cents.) The regulation also delays implementation to Oct. 1, 2011, The supplier must bill for the full amount supplied and must instead of starting on July 21. Merchant and consumer groups are bill at the beginning of the month. Moreover, for refilled both unhappy with the Fed's action because the fees are higher DME supplies, the supplier must contact the beneficiary than expected. There also is no prohibition on raising other prior to dispensing the refill and not automatically ship on a banking service fees, making likely the threat that the banks and pre-determined basis, even if authorized by the beneficiary. credit card companies will raise other fees to make up for the cuts Contact with the beneficiary must occur14 days or fewer to the swipe fees. before the delivery date. Delivery of the refill must occur 10 days or fewer before the end usage of the current product. NCPA supported the lower swipe fee, and continues to review the new regulation to determine if we will respond to the Fed.

SPECIAL REQUIREMENTS OF National Immunization Awareness Month

SB 36 (JULY 1, 2011) National Immunization Awareness Month is the perfect time to promote immunizations and remind family, friends, and A. If a physician still uses paper prescription pads, coworkers to get caught up on their shots. Immunizations they must use special security paper approved by the (or vaccinations) aren’t just for babies and young kids. We all Board of Pharmacy for all prescriptions for Schedule need shots to help protect us from serious diseases and illness. 2 controlled substances after October 1, 2011. This Everyone over age 6 months needs a seasonal flu shot every does not impact prescriptions that are sent directly to year. Here are some other shots people need at different ages: pharmacists electronically. B. As of July 1, 2011 patients picking up prescriptions Young children: for Schedule 2 controlled substances must present •Children under age 6 get a series of shots to protect against a valid government issued photo identification. The measles, polio, chicken pox, and hepatitis. Board of Pharmacy can develop further rules regard- Preteens: ing this in the future (what forms of identification are •All 11- and 12-year-olds need shots to help protect against acceptable, if information from the identification is to tetanus, diphtheria, whooping cough, and meningitis. be logged, etc.) but has not done so at this time. •Doctors recommend girls also get the HPV vaccine to protect The main part of the legislation, the actual database against the most common cause of cervical cancer. itself, is trying to be set up and funded now through Adults: various grants. The database is not expected to be up •All adults need a tetanus shot every 10 years. and running for at least another year. •People age 65 need a one-time pneumonia shot. •Talk to your doctor or nurse about which shots you and your family need.

Page 10 Enjoy up-front savings and boost your bottom line! Independent Pharmacies: Medicare Part B and Medicaid Fee-for-Service

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Page 12 For 10-Year Anniversary of 9/11, Plans for Largest Day of Charitable Activity in Nation’s History Unveiled With Congressional Leaders at U.S. Capitol

July 14, 2011 - Republican and Democratic U.S. Organizers expect this year's 9/11 Day Observance to be Congressional leaders today came together in a the single-largest day of good deeds, charitable activity show of bipartisan support for a nationwide effort and service in United States history, with at least one mil- to inspire millions of Americans to voluntarily en- lion Americans paying tribute through good deeds and gage in charity, service and good deeds in obser- charitable service to the 9/11 victims and survivors, and vance of the upcoming 9/11 Day of Service and those who rose in service following the attacks, including Remembrance and the 10-year Anniversary of the military and public safety personnel. attacks. Kicking off the nonprofit 9/11 Day Obser- vance, prominent members of Con- "This is a historic and forward-looking op- gress joined with nearly 150 9/11 portunity for our entire nation and each family members, survivors, rescue of us as individuals to join together once and recovery workers, volunteers again with the same spirit of unity that and members of Congress to help arose following the attacks nearly a decade stitch The National 9/11 Flag that ago," said David Paine, co-founder and was damaged in the aftermath of the president of MyGoodDeed. "Collectively, collapse of the World Trade Center through our positive actions that help oth- nearly a decade ago. ers in need, we will create a remarkable and lasting tribute that will forever honor those Joining as principal congressional we lost on 9/11, and demonstrate emphati- co-sponsors and expected partici- cally that goodness ultimately wins out pants in the ceremony held in the over evil." historic Kennedy Caucus Room in the Russell Senate Building were "The 10-year Anniversary of the 9/11 at- U.S. Senators Charles Schumer (D-NY), Kirsten tacks is a national touchstone that unites us all. It is a time Gillibrand (D-NY), Scott Brown (R-MA), Olympia for people to come together and use their power to create Snowe (R-MA), Susan Collins (R-ME) and Frank change in their communities," said Michelle Nunn, CEO Lautenberg (D-NY), along with U.S. House of Rep- of Points of Lights of Institute. "HandsOn Network will resentatives Democratic Leader Nancy Pelosi (D- directly mobilize 50,000 people to use their time, talent, CA) and U.S. Representatives Peter King (R-NY), voices and resources to create a positive, lasting legacy of Doris Matsui (D-CA), Jerald Nadler (D-NY), Ken- service that addresses the challenges we all face." neth Calvert (R-CA), and Carolyn Maloney (D- NY). Many other members also joined to support "Throughout the nation, many in the 9/11 community see this event and participate in the flag restoration this observance as an opportunity to honor our loved ones over the course of the day. lost and to make the world a bit better for those in need," MyGoodDeed and HandsOn Network, the volun- said MyGoodDeed co-founder and vice president Jay S. teer activation division of Points of Light Institute, Winuk, whose brother Glenn J. Winuk, a partner at the are the lead organizers of the nonpartisan, non- law firm Holland & Knight and a volunteer firefighter and profit 9/11 Day Observance, established soon after EMT, died in the line of duty on 9/11. "From the ashes of the attacks to advocate for and support the federally Ground Zero, the Pentagon and Shanksville, Penn., people recognized 9/11 Day of Service and Remembrance. all over the world are bonding together annually on this Joining with MyGoodDeed and HandsOn Network day, and that is a great tribute to all those who perished." to lead the 9/11 Day Observance are the National source: yahoo.com September 11 Memorial and Museum, U.S. Cham- ber of Commerce's Business Civic Leadership Cen- ter, AARP and The Mission Continues. Page 13 New! Thursday Plantation Tea Tree Products

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Page 15 2012 Continuing Education and Gift & Trade Show

Grove Park Inn • Asheville, NC July 20th - July 22nd Registration Coming Soon! Page 16