Sign In
How to Draft a Collaborative Practice Agreement

The Ultimate Guide to Collaborative Practice Agreements for Independent Pharmacies by Elements magazine |

October 5, 2021

Until pharmacists achieve provider status, the only way to get paid for a variety of services is through a legal partnership with providers.

A collaborative practice agreement, or CPA, is an agreement between a physician and a pharmacist to work together to improve patient care. The physician makes a diagnosis and writes any needed prescriptions, and then refers patients to a pharmacist who can help to manage their care.

READ NEXT: The Ultimate Guide to Collaborative Practice Agreements for Independent Pharmacies

A 2011 report on the effect of CPAs between pharmacists and physicians found that they reduced fragmentation of care, lowered costs, and improved outcomes for patients. Because the prescriber and the pharmacist are actively communicating about patient health, it’s easier to identify appropriate interventions for patients.

In the United States, the ability to enter into a CPA is governed on a state level, and 36 states allow pharmacists to provide drug therapy management in any setting. Other states may allow some form of collaborative practice, but with more limitations. You can visit NASPA’s website to find out where your state stands.

What a CPA entails

Some of the services your pharmacy already provides — like medication synchronization or medication therapy management — could fall under the umbrella of a CPA. You don’t have to have a CPA to do those things, but with a CPA in place you could have greater cooperation from prescribers.

However, there are other services that you can perform under a CPA that you may not be able to do otherwise. These include:


How to secure a CPA

The first step to entering into a CPA is identifying prescribers you can work with.

The easiest place to start is with prescribers you already have a relationship with. If you don’t already know, find the prescriber with the most mutual patients.

If you know prescribers socially, grab a coffee with them to talk about what their practice needs and how you could solve that by entering into a CPA.

Recognize that prescribers are busy and may not have time for an in-person meeting. In a tip sheet for connecting with prescribers, Simplify My Meds recommends dropping off some written material or sending material via email to give prescribers a chance to review when they have time. These materials should lay out what a CPA could entail.

The CDC recommends a three-part framework for a CPA that works for both you and prescribers: aligning incentives, improving outcomes, and controlling costs.

Align incentives 

A CPA should not just bring benefits to you and the prescriber — it should also benefit patients, too.

For pharmacists, a collaborative practice agreement can mean increased compensation for providing additional services. CPAs typically include a fee-for-service payment structure, with the prescriber paying the pharmacist for services performed.

A CPA could lead to a steady stream of patient referrals coming from the prescriber, and therefore a greater prescription volume.

For a prescriber, when pharmacists provide clinical services, it lessens their own work burden and helps them improve their quality-of-care metrics.

And for patients, it means more people are actively invested in their health.

Improve outcomes

You and the prescriber should be working together to track progress and outcomes for the patients that you share.

Sharing electronic health records will play a big part in this collaboration. Your computer system should be able to interact with prescribers’ computer systems so you can communicate clearly and securely.

Control costs 

If outcomes are improved using a CPA, the overall cost of healthcare should decrease for patients and the third-party payers covering their care.

Writing a CPA

Once a prescriber and pharmacist have agreed to enter into a CPA, the next step is to put it in writing.

Because this is a complicated contract, both you and the prescriber will want to get your attorneys involved to ensure the terms make sense for each party and to make sure you’re following all the laws and regulations in your state.

According to the CDC, a collaborative practice agreement should include these parts:


Depending on your state requirements, you may have to take additional steps like registering your CPA with state agencies or updating your NPI number.


A Member-Owned Organization Serving Independent Pharmacies

PBA Health is dedicated to helping independent pharmacies reach their full potential on the buy side of their business. The company is a member-owned organization that serves independent pharmacies with group purchasing services, expert contract negotiations, proprietary purchasing tools, distribution services, and more.

An HDA member, PBA Health operates its own NABP-accredited (formerly VAWD) warehouse with more than 6,000 SKUs, including brands, generics, narcotics CII-CV, cold-storage products, and over-the-counter (OTC) products.

Want more pharmacy business tips and advice? Sign up for our e-newsletter.



Sign up for a FREE subscription to Elements magazine!



Sign up to receive the weekly Elements e-newsletter for bonus business tips and advice.

find out more