Introduction

Client: Jay Eastridge, Owner/Operator

Pharmacy: Eastridge-Phelps Pharmacy

Location: South Central Kentucky

Services: Community pharmacy, immunizations, point-of-care testing, clinical services

Eastridge-Phelps Pharmacy serves a rural Kentucky community, providing essential healthcare services including immunizations, test-and-treat protocols, and medication counseling. Like many independent pharmacies, they faced significant cash flow challenges due to declining pharmacy benefit manager reimbursements and sought to diversify revenue through medical billing.

The Problem

Previous Vendor Failures

Jay Eastridge’s pharmacy initially partnered with another medical billing company that created devastating operational challenges:

  • Over 400 Medicaid claims left unpaid due to enrollment issues with Medicaid
  • Lack of transparency – billing staff located overseas with no direct communication
  • Contract mismanagement – credentialing and payer contracts were poorly handled
  • Lost revenue opportunities – Anthem contract lapsed without pharmacy’s knowledge, making an entire flu season’s worth of immunizations unbillable

“They made a total mess of all of our contracts… It was worse than trying to start from scratch when we came to DocStation.”

– Jay Eastridge

Operational Complexity

The pharmacy needed to navigate Kentucky’s unique Medicaid structure with six managed care organizations, each requiring separate contracts. Additionally, they were providing clinical services like:

  • Immunization clinics at assisted living facilities and large employers
  • Point-of-care testing with test-and-treat protocols for strep, flu, and COVID
  • First-dose antibiotic counseling services

The Solution

The pharmacy owner faced multiple billing and reimbursement challenges, particularly with Medicaid and Anthem Blue Cross Blue Shield (BCBS). Initially, over 400 Medicaid claims were submitted but went unpaid due to issues with the pharmacy’s Medicaid enrollment. Once DocStation identified the root cause, the team worked closely with the pharmacy to resolve these enrollment barriers and enable successful claim submission.

However, even after correcting enrollment, claims continued to be denied due to billing inaccuracies. DocStation provided hands-on support to correct these issues, which included improper CPT codes, place of service errors, and incorrect taxonomy selections. With DocStation’s guidance, the pharmacy rebilled claims correctly, leading to successful reimbursement.

In the last two months, substantial progress was made. All previously denied Medicaid claims were rebilled and are now getting paid. DocStation also intervened on behalf of the pharmacy to resolve outstanding issues with Anthem BCBS, ensuring claims were properly processed and reimbursed.

Key actions taken by DocStation:

  • Identified and corrected Medicaid enrollment issues, enabling claims to be submitted.
  • Provided training on accurate CPT codes, place of service, and taxonomy use.
  • Guided the pharmacy in preparing and submitting corrected claims to meet payer requirements.
  • Helped rebill over 400 Medicaid claims, resulting in successful payments.
  • Reached out to Anthem BCBS to resolve claim issues and ensure timely reimbursement.

Full resolution required Jay to take an active role in understanding the underlying contracting issues with Medicaid and BCBS. Although he initially had the option to handle this independently, he decided to partner with ProviderCSAO for credentialing support. Like many providers, he encountered common challenges with payer credentialing, but with ProviderCSAO’s assistance, he was ultimately successful in securing the necessary contracts.

While DocStation delivered education and insights grounded in data, Jay recognized the importance of developing a deeper understanding of medical billing—a crucial component of long-term success. He initially expressed frustration about his lack of clarity around his contracts and enrollments, particularly regarding the differences in reimbursement rates when billing through Medical Mode (MM), where the rendering provider follows the physician fee schedule. However, Jay quickly shifted his approach, becoming more engaged by asking informed questions, actively managing his DocStation dashboard, and refining his pharmacy’s billing workflow.

It’s important to emphasize that Jay led much of this effort in collaboration with DocStation. The partnership resulted in significantly improved billing accuracy, increased reimbursement rates, and a stronger overall revenue cycle for the pharmacy.

The Outcome

Financial Recovery

  • Successfully rebilled over 400 previously rejected Medicaid claims
  • Achieved return on investment despite initial setbacks
  • $17-35 per claim revenue for first-dose counseling services alone
  • Streamlined revenue from services already being provided by law

Operational Excellence

“Probably more than any company I’ve ever dealt with, the support has been phenomenal… the little chat where you can talk to someone within 15 minutes is unheard of in our world.”

– Jay Eastridge

Key Improvements:

  • 15-minute response time for support inquiries
  • Transparent communication and direct access to billing specialists
  • Systematic resolution of complex credentialing issues
  • Proactive contract management and compliance monitoring

Industry Recognition

The success was so notable that CPESN Kentucky requested Jay present to all Kentucky CPESN pharmacies about DocStation, with leadership stating his pharmacy was “doing it and doing it well better than anybody else in the state.”

Key Success Factors

  1. Comprehensive Problem-Solving: DocStation didn’t just provide software – they actively worked to resolve inherited contract issues and billing problems
  2. Exceptional Support: Unlike previous vendors, DocStation provided direct, rapid communication and hands-on assistance
  3. Workflow Integration: The solution adapted to existing pharmacy operations rather than requiring complete process overhaul
  4. Revenue Recovery: Systematic approach to identifying and resolving denied claims recovered significant lost revenue

The Bottom Line

For independent pharmacies struggling with cash flow and seeking revenue diversification, DocStation proved that medical billing can be successfully integrated into existing operations. The combination of robust technology, exceptional support, and genuine partnership enabled Eastridge-Phelps Pharmacy to transform frustrated billing attempts into a sustainable revenue stream.

“When I commit to making something successful, I tend to pour a lot of time into it—maybe even too much. But working with DocStation has been absolutely incredible.”

– Jay Eastridge

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