Compliance and license considerations for hiring pharmacists

Pharmacy compliance checklist and licensing guide for hiring pharmacists in healthcare organizations

Pharmacies in the USA operate under stringent compliance criteria and regulations, and so do the compliance and licensing considerations that must be adhered to while hiring pharmacists. To support these regulations, understanding pharmacist licensing requirements becomes essential for every healthcare facility. 

Pharmacists play a vital role in dispensing medications, optimizing dosages, and administering drugs, underscoring the need for a robust pharmacist compliance checklist during hiring. To avoid adverse drug events that can risk the patient’s health, the government has imposed strict guidelines on the license requirements and compliance regulations for Pharmacist hiring. 

Each state has its own State Pharmacy Board, which is responsible for establishing these criteria and issuing pharmacist licenses. According to DataUSA statistics from 2022, there are 346,479 licensed Pharmacists in the USA. However, the demand for pharmacists is very high. 

The Bureau of Labor Statistics projects that pharmacist vacancies will grow by 5% in the upcoming decade. This underscores the need to bring more skilled professionals into your facilities through streamlined processes, such as pharmacist license verification, to ensure safe, compliant hiring.

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Source: US Bureau of Labor Statistics

Hiring contract pharmacists: what healthcare organizations need to know about pharmacist licensing requirements

The pharmacist should have a valid license issued by the state’s pharmacy board to practice in your facility. If the pharmacist hired is licensed in another state, proof of the license and any endorsements must be submitted in the state where your facility is located.To verify that the candidate is authorized to work in the state, a detailed professional license verification and license renewal history must be done.

Some states provide pharmacist license verification via the National Association of Boards of Pharmacy (NABP) portal.A thorough background check is essential to rule out that the candidate does not have any drug abuse issues or criminal background, which can put the patient’s life at risk. 

Moreover, extensive pharmacist credentialing is important to verify the candidate’s educational qualifications, experience, and certifications. If necessary, have the candidate undergo drug screening after obtaining their consent.If your facility plans to utilize pharmacists in telepharmacy roles, ensure the pharmacist is licensed to provide telepharmaceutical interventions in the state where the patient resides. Strengthening a pharmacist’s compliance checklist at this stage helps avoid legal risks.

Compliance with employment laws and regulations

As per federal regulations, pharmacists who dispense controlled substances must have a valid Drug Enforcement Administration (DEA) Registration number, which needs to be verified and documented by the healthcare facility.

Some states allow licensed pharmacists to work alongside physicians to prescribe medications and implement drug therapy. In such states, the healthcare facility must ensure that the Collaborative Practice Agreements (CPAs) are intact and compliant with state regulations. If pharmacists are required to provide services to patients covered by Medicare or Medicaid programs, the facility must ensure that the pharmacists comply with all regulatory requirements for these programs.

Healthcare facilities need to ensure that the pharmacists they hire are provided with a safe working environment in accordance with the Occupational Safety and Health Administration (OSHA) standards.
Fair Labor Standards Act (FLSA) compliance requirements must be followed, including the healthcare employment laws governing employees’ wages and working hours.

Anti-discrimination laws need to be strictly adhered to by ensuring that the candidates are not subjected to discrimination based on gender, race, color, national origin, religion, disabilities, or age. Finally, the contract terms and conditions should be carefully drafted and include all relevant provisions on compensation, termination criteria, and confidentiality. Maintaining the internal pharmacist compliance checklist ensures that these steps are handled in accordance with state and federal guidelines.

How to perform credential verification and background checks?

Verification of credentials and background checks can be handled efficiently by collaborating with an experienced medical staffing solutions provider. The credentialing and compliance review process requires careful attention to avoid potential risks. 

A candidate’s license can be verified through the National Association of Boards of Pharmacy (NABP) portal, ensuring they meet all pharmacist licensing requirements. The candidate’s license status, along with their renewal history, remains one of the most important checkpoints during validation.

The National Practitioner Data Bank (NPDB) is a secure, confidential database that contains the professional history of healthcare professionals, including malpractice claims, disciplinary actions, and adverse license actions. This database can be utilized for the background verification process. Considering references from previous employers can help facilities with employment history verification and authenticate the credentials submitted by the candidate. This is another point where pharmacist credentialing processes strengthen decision-making.
 

HIPAA compliance and data privacy

HIPAA compliance requirements are critical in the healthcare sector, and the hired pharmacists must be trained on HIPAA regulations and data privacy policies. The Health Insurance Portability and Accountability Act (HIPAA) outlines federal rules and guidelines for the collection, storage, and transmission of patient health information (PHI). The law emphasizes the importance of data privacy. It stipulates that protected health information must be kept confidential by limiting access to these records and patient details to authorized personnel only.

In any case of data infringement, the patient must be informed as soon as possible. When pharmacists are required to access this protected health information on behalf of the healthcare facility, a Business Associate Agreement (BAA) needs to be signed by the pharmacists.

 Furthermore, if the pharmacist’s duties include telepharmacy, the healthcare facility must take all necessary steps to ensure HIPAA compliance throughout the practice period. This may consist of using authorized software, implementing secure authentication, and encrypting sensitive patient data.

According to data from the US Bureau of Labor Statistics, Florida is one of the top five states with the highest number of licensed pharmacists, with 21,360. The requirements in Florida are clearly outlined on the Florida Board of Pharmacy’s website, which outlines various permits and types of licenses that pharmacists need to obtain based on their work requirements and eligibility criteria.

 This includes the pharmacist collaborative practice certification, Immunization administration certification, Out-of-State telehealth provider registration, etc. These guidelines reinforce the significance of adhering to pharmacist licensing requirements, ensuring every professional meets the expected regulatory standards. They also highlight the importance of maintaining a strong hiring pharmacist compliance checklist, helping facilities stay aligned with all necessary compliance measures.

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Addressing Regulatory Hurdles and Hidden Costs in Pharmacist Recruitment

Hiring a pharmacist licensed in your state who meets all regulatory and compliance requirements, as detailed by the state, can be a bit challenging. To keep up with the increasing patient demand while navigating the compliance challenges of pharmacist hiring, an ideal way is to hire pharmacists through a pharmacist staffing solutions provider or an agency. 

By collaborating with this entity, you can mitigate the risks and the burdensome administrative processes associated with pharmacist hiring. However, a key consideration when working with these medical staffing agencies is their pricing structure. 

They operate on the traditional markup model, well-known for its opaque pricing, and charge a high bill rate due to their high markup fees, leaving your contract pharmacists paid below market standards.
 

How MedSquirrels can help you hire pharmacists legally and ethically

MedSquirrels is a medical staffing platform that leverages AI and automation to streamline the end-to-end contract pharmacist recruitment process. With the MedSquirrels platform, customized job descriptions for pharmacists are crafted to align with state regulations governing licensed pharmacists’ duties, ensuring they fully meet pharmacist licensing requirements.

With our Orange and Purple plans, we provide end-to-end EOR services from contract recruitment to payroll, with a flat license fee plus payroll costs. We also have the Blue plan to support the full-time hiring of Pharmacists. 

Our platform provides complete transparency into our pricing, with no hidden charges or markup fees, unlike traditional pharmacist staffing agencies. With our unique pricing model, you can ensure your pharmacists get paid above industry standards. Book a demo today to learn more about our staffing platform.

FAQs

How is MedSquirrels different from other staffing agencies?

MedSquirrels is a healthcare staffing solutions platform that leverages AI and automation to streamline the entire process. Moreover, MedSquirrels does not charge high markups or hidden billing rates. There is only a flat license fee, plus a per-hire payroll cost.

Can MedSquirrels support contract pharmacist hiring?

Yes, MedSquirrels supports contract pharmacist staffing and offers one of the most popular plans for contract hiring plus payrolling, which takes care of all your facility’s contract staffing needs, from candidate sourcing, resume screening, credentialing, compliance checks, onboarding, and payrolling. 

How can I rely on MedSquirrels’ recruitment process?

The entire MedSquirrels recruitment process is transparent and available to users via the portal. Healthcare facilities can track the status of their recruitment process at any time, from anywhere, with a single click.

How can healthcare facilities attract top pharmacists?

The top strategies to attract talented pharmacists to your healthcare facilities include offering competitive compensation aligned with market standards, providing career advancement opportunities, fostering a positive work culture, promoting work-life balance, and offering flexible shifts.

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