Originally published on Nov 30, 2016.
This blog post focuses on the financials behind the VAWD Program.
Five Rivers estimates that the VAWD Program has generated $5.79 million since July 2016. The windfall can largely be attributed to the the recent OptumRX policy change which resulted in a tremendous increase in the number of VAWD applications. Since July 2016 there have been an estimated 1,053 facility applicants, each of them forking over $5,500 dollars when submitting their application. Remember, because the Accreditation is facility-based, a company with multiple distribution centers would be required to pay the set of fees for each and every distribution center.
At this time, there are 580 Verified-Accredited Wholesale Distributors® which means they were averaging just shy of $1.2 million in annual revenues. $580,000 of that annual take was not tied to an inspection or application fee. With a possible 1,800 future VAWD accredited facilities, the NABP could potentially receive $3.5 million in annual revenues. $1.8 million of that sum would strictly be “accreditation fees” and not tied to an inspection or application fee.
To put this all in perspective, however, the VAWD Program’s income over the last four months was only a mere 5% of the NABP’s 2014 gross receipts, which added up to a whopping $87 million dollars. The net assets or “fund balances” for the NABP in 2014 stood at $71 million.
The information used in this post was gathered from public and private sources.