Pharmacy Service Administration Organizations (PSAO) assist independent pharmacies with a variety of services.  PSAO services are designed to help pharmacies achieve administrative efficiencies, including contract and payment efficiencies.¹ 

PSAOs generally benefit the pharmacy by offering the following services:

• Contract negotiations:  PSAOs will negotiate and enter into contracts with third-party payers on behalf of member pharmacies. PSAOs may also contract with pharmacy benefit managers (PBM), which many third-party payers use to manage their prescription drug benefit. ¹

• Maximize Reimbursements:  PSAOs help ensure that you receive proper reimbursements. 
  
  
• Communication: PSAOs communicate information to members regarding contractual and regulatory requirements, and provide general and claims-specific assistance to members by means of a help-desk or a dedicated staff person.¹
  

• Help-desk services:  PSAOs provide other services to help member pharmacies interact with third-party payers or their PBMs, such as managing and analyzing payment and drug-dispensing data to identify claims unpaid or incorrectly paid by a third-party payer.¹
  
  

PSAOs vary in how services are offered to pharmacies. Most organizations charge a monthly fee for a bundle of services and may charge additional fees for other services provided to its member pharmacies. Virtually all of the fees are paid by member pharmacies, with PSAOs receiving no administrative fees from other entities such as third-party payers or their PBMs. 

REFERENCE: 
1.The Number, Role, and Ownership of Pharmacy Services Administrative Organizations. Accessed January, 2015.