The New York State Board of Pharmacy (the Board) confirmed this month that it will strictly interpret New York State Assembly Bill A9729, which takes effect on May 22, 2026. The Board’s guidance is significant for two reasons. First, in the Board’s view, in order to engage in shared services in New York State, a pharmacist must be licensed in New York State, seemingly contrary to out-of-state licensure requirements. Second, the Board demonstrated a willingness to issue guidance and clarify conflicts among different regulations.
Background: A New Regulatory Framework
On April 3, 2024, New York State Assembly Bill A9729 was signed into law, offering a comprehensive regulatory framework for “shared pharmacy services.” The bill amends § 6802 (30) of the Education Law and defines shared pharmacy services as “a system that allows a registered pharmacist or a registered pharmacy, pursuant to a request from another registered pharmacist or pharmacy, to process or fill a prescription or order, pursuant to regulations promulgated by the commissioner.”
Registration and Licensure Requirements
The law explicitly states that no pharmacy or pharmacist shall provide shared services unless registered under one of the following statutes:
- § 6805: Individual Pharmacist License
- § 6808: Pharmacy Registration
- § 6808-b: Nonresident Pharmacy
Operational Requirements
A pharmacy may only engage in shared pharmacy services if the pharmacies involved:
- Share the same owner; or
- Have a written agreement that outlines the services provided and the shared responsibilities of each pharmacy; and
- Share common electronic files, allowing access to information necessary or required to perform shared pharmacy services.
Critically, the law also expands the definition of “nonresident establishment” to mean “any pharmacy located outside of the state that participates in shared pharmacy services for registered pharmacies and/or patients residing in this state…”
The Board’s Strict Interpretation
The new interpretation of the law shifts the focus from regulating the entity engaging in shared pharmacy services to regulating the individual pharmacist engaging in these services. Indeed, as the regulation states and the Board later confirmed, even if a pharmacist is connected to a pharmacy that is properly licensed and registered in New York State, that individual will now have to be licensed in New York State if they intend to dispense to New York State patients.
Other Requirements for Shared Pharmacy Services Business Models
Beyond licensure, the law requires several new operational standards for shared pharmacy services business models:
- Maintain records for every prescription or order that identify the name and, if applicable, the license or registration number of every individual and pharmacy involved in the process.
- Implement a system to track each step of the filling or processing of orders.
- Notify the Board within 30 days of any disciplinary action taken by a regulatory agency in another state against the shared pharmacy services as defined in the statute.
- Maintain a system that protects the confidentiality and integrity of protected patient information.
- Maintain processes for storing, processing, and dispensing controlled substances.
How to Prepare
With the May 22, 2026, effective date approaching, pharmacies should immediately take the following steps:
- Audit Staff Licensure: Identify all pharmacists currently performing remote order entry or clinical reviews for New York State patients and ensure they begin the New York State licensure process.
- Review Contracts: Update shared pharmacy services agreements to ensure they meet specific requirements.
- Update Software and Labeling: Ensure your pharmacy management system can track individual licensure numbers at every step. Update prescription labels to list all participating pharmacies.
Now that the Board has given its guidance, we anticipate that there will be strict enforcement, including professional discipline. Any discipline of a pharmacist could result in additional consequences impacting credentialing and enrollment. As such, pharmacists should seek experienced counsel in the event they are visited by any investigator from the Office of Professional Discipline or notified of any investigation.
Barclay Damon’s national Pharmacy and Health Care Teams advise and represent independent pharmacies nationwide on compliance with Medicaid requirements, payor contract requirements, and business best practices. Our attorneys also defend pharmacists in state board actions. If your pharmacy has questions about the effects of the new legislation or other Medicaid requirements, our attorneys can help.
If you have any questions regarding the content of this alert, please contact Brad Gallagher, co-leader of the Pharmacy and Health Care Controversies Teams, at bgallagher@barclaydamon.com; Margaret Surowka, co-leader of the Health & Human Services Providers Team, at msurowka@barclaydamon.com; Alix Hirsh, associate, at ahirsh@barclaydamon.com; or another member of the firm’s Health & Human Services Providers, Health Care Controversies, or Pharmacy Teams.