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The true cost of LTC billing, how having the right software can impact (end of month) billing

Written by FrameworkLTC | Jul 20, 2026 11:23:58 PM

There is a moment most LTC pharmacy billing teams recognize. The day is winding down and the billing team is still at their desks. Month-end just started and as the billing staff process invoices, the rest of the pharmacy has slowed to a crawl waiting for it to finish. The pharmacy accounts receivable report does not match what anyone expects and nobody can pinpoint exactly why. Errors result in costly resubmission fees causing more administrative work for your team while dragging down your profitability.

None of these are emergencies on their own. But together they become the operational baseline, the cost of running pharmacy billing software that was not built for what long-term care pharmacy actually demands.

Meanwhile, Medicine Express Pharmacy, an LTC pharmacy serving more than seventy-five communities across the Midwest, reduced labor cost to total revenue from 23.5% to 17.25% after switching to FrameworkLTC: a 6.25 percentage point improvement that came entirely from billing efficiency gains. 

 

Built for Long-Term Care Billing, Not Adapted for It.

LTC pharmacy billing is not a variation of retail pharmacy billing. Cycle fills, Medicare Part A billing, complex reimbursement across multiple facilities, and accounts receivable cycles that bear no resemblance to point-of-sale retail transactions; these are not features a retail system can bolt on. When retail-extended systems are pushed into LTC environments, the mismatch shows up in billing first. Manual workarounds accumulate. Resubmission fees climb. Month-end becomes a multi-day event that slows down the entire operation.

FrameworkLTC was purpose-built for this environment as a result of three decades of focused investment in long-term care pharmacy. The difference is not a feature list. It is an architecture that was designed around how LTC pharmacy billing actually works.

Why Long-Term Care Pharmacy Billing Breaks Down

Errors can originate in a variety of places across both your staff and systems: from a missed keystroke, an inaccurate integration, or a change in condition. In most pharmacy management systems, information travels through order entry, dispensing, and verification before it ever reaches billing. If any step in that chain introduces an error such as a missed field, an incorrect selection, an incomplete patient record, that error does not announce itself. It travels forward quietly until it surfaces as a rejected claim, a resubmission fee, or an accounts receivable discrepancy that takes hours to trace back to its source.

Long-term care pharmacy billing compounds this problem in ways that retail billing does not. Medicare Part A split billing, cycle fill reconciliation across multiple facilities, and the complexity of managing billing for residents with multiple payers simultaneously create more points of potential error than any retail-derived system was designed to handle. The result is a billing workflow that depends heavily on manual correction rather than clean data, and a billing team that spends more time fixing problems than processing claims.

That structural problem does not resolve by hiring more billers or adding more manual checks. It resolves when the system underneath the billing workflow is designed to handle LTC billing complexity from the start.

What the Numbers Look Like When It Works

The numbers tell the story more clearly than any feature list could. Medicine Express Pharmacy in Belleville, Illinois serves more than seventy-five assisted living and memory care communities across the Midwest. Before switching to FrameworkLTC, long-term care pharmacy billing consumed roughly two months of productive time each year, spread across six dedicated employees manually adjusting and resolving errors. After the switch, billing takes a single day each month with a third of the staff previously required.

"The reporting just really makes it a lot easier for our team to identify any billing errors before they hit the customer's mailboxes," said Brendan Reeb, Director of Finance at Medicine Express. "That's huge. Making the customers happy and saving us a lot of time."

Cycle accuracy reached 100% within a year of switching. New admission accuracy improved by 40%, with most new medication orders now delivered the same day they arrive. And the team that used to stay until 7 PM troubleshooting problems now leaves by 4 or 5 PM.

"My team goes home for dinner at the end of the day, and there are no mysteries left," said Emily Powers, President and Pharmacist in Charge at Medicine Express.

When Three Days Becomes Thirty Minutes

Managed Healthcare Pharmacy in Eugene, Oregon had a different challenge. Their previous system had stopped keeping pace — vendor support was slow, key features were missing, and the data visibility their billing team needed simply was not there.

"We just got to the point where we felt the software wasn't being supported as much as we would like," said Randall Klemm, Owner and CEO.

After switching to FrameworkLTC, pharmacy billing processes that previously took three days now take thirty minutes. Out-the-door errors decreased, improving both accuracy and patient safety. Enhanced data and reporting gave the team what they needed to make more objective decisions about staffing and operations.

The transition itself was seamless. "The onboarding and training were phenomenal. They were able to implement the new system while keeping the old system working to avoid any downtime in medications processed," said Brie, Workflow Coordinator at MHP.

Why Pharmacy Billing Automation Works Differently in FrameworkLTC

Pharmacy billing automation is where the architectural difference between FrameworkLTC and other systems becomes most visible, and most consequential for pharmacy cash flow.

Most pharmacy management systems run pharmacy accounts receivable and month-end billing inside the same platform that handles dispensing. On most pharmacy management systems, month-end billing and daily dispensing operations share the same platform. When billing runs, the pharmacy floor slows down: order entry, packaging, and label printing all wait while billing catches up.

FrameworkLTC runs pharmacy accounts receivable and month-end billing through Sage 300 - one of the most widely used billing platforms across industries as a separate process operating outside the core pharmacy operations software. That architectural separation means billing puts no stress on pharmacy operations. When month-end billing runs, packers keep packing, technicians keep entering orders, and labels keep printing. Billing runs completely on its own path in parallel.

The second difference is how automated Med A split billing works. FrameworkLTC handles Medicare Part A billing automatically and the system does the split without requiring staff to open and work every single script individually. As information is entered correctly all the way through the workflow, the billing is clean the first time. At month-end, teams can filter by rejection code and work claims in batches rather than submitting and reconciling orders one at a time. That is the difference between manual pharmacy revenue cycle management and a true batch engine.

The result is what Medicine Express and Managed Healthcare Pharmacy experienced: dramatically less labor, cleaner pharmacy accounts receivable, and a steep reduction in the resubmission fees that quietly inflate the cost of running on a system where billing data is unreliable from the start.

Where LTC Pharmacy Billing Is Heading

The financial environment LTC pharmacies are operating in today makes billing efficiency more consequential than it has ever been. As we covered in our Federal Policy Changes blog, reimbursement is tightening under the IRA's Maximum Fair Price program, with LTC pharmacies facing potential Part D revenue drops that make every dollar of billing inefficiency harder to absorb. In that environment, the pharmacies that have already reduced billing labor costs, shortened accounts receivable cycles, and eliminated resubmission fees will have a structural advantage over those still running manual billing processes. The gap between them will widen as reimbursement pressure increases, not because one group is better managed, but because one group built the right operational foundation before the pressure arrived.

SoftWriters has spent thirty years building for long-term care pharmacy and only long-term care pharmacy. That singular focus shows up in how FrameworkLTC handles the complexity that other systems were never designed for including cycle fills, Medicare Part A split billing, multi-facility reimbursement, and accounts receivable cycles that retail-derived platforms consistently struggle to manage without significant manual intervention.

For pharmacies evaluating their current system, the question is not whether switching is complicated. It is whether the operational and financial cost of staying on a system that was not built for LTC pharmacy billing is worth the stability of the familiar.

"In pharmacy and healthcare in general, you need outcomes, and you need results, stat. You can't wait three or four days for a problem to be resolved," said Emily Powers. "I would highly recommend that other pharmacies take a look at FrameworkLTC."

If you are ready to see what pharmacy billing software purpose-built for long-term care actually looks like in practice, schedule a consultation with the SoftWriters team.

 

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