• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechData Sheet

Why drug stores are high on electronic prescriptions

By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
March 5, 2015, 11:19 AM ET

Although the vast majority of U.S. pharmacies can handle “e-prescribing” of medication, most doctors still scribble them and hand them off to patients for dispensing. Drug-store chain CVS Health and healthcare technology company Surescripts are pushing to close that gap, and a new law in New York could help their cause.

The legislation, which takes effect March 27, requires electronic prescriptions for controlled substances—like codeine, hydrocodone, oxycodone or valium. No, faxed copies of handwritten orders don’t count.

E-prescribing of these drugs is legally allowed in almost every state (except for Montana and Missouri), but New York is the first to make it mandatory. The motivation is pretty simple: rampant abuse that makes these substances deadlier on an annual basis than cocaine and heroine, combined. “This is the part of the system that faces the most challenges in terms of fraud,” said Surescripts CEO Tom Skelton, when I spoke with him in late December.

Today’s Surescripts was formed when it merged in 2008 with RxHub, a rival e-prescribing network created by CVS Caremark, Express Scripts, and Medco Health Solutions. It processes approximately 7 billion “transactions” per year, including messages sent between member healthcare organizations, searches of medication histories, and e-prescriptions.

Notes CVS Health Senior Vice President Josh Flum: “Our retail pharmacies were early adopters of electronic prescribing and all of our 7,800 are enabled to receive electronic prescriptions, which is an important tool for reducing incidences of fraudulent controlled substances being presented at the pharmacy.”

Surescripts links more than 93% of all U.S. pharmacies, including CVS, Walgreens, and the departments found in many large retailers and grocery stories such as Walmart. It also has relationships with benefits companies like Aetna and Anthem. During 2015, the company figures it will communicate at least 5 million prescriptions for controlled substances—a 400% increase over 2014. Electronic health records software companies like Practice Fusion and athenahealth offer this feature as part of their systems.

The potential side effects of e-prescriptions? Surescripts cites figures suggesting that they can help reduce adverse drug reactions by more than 60%, by flagging pharmacists when a new medication may contraindicate another drug. Physicians stand to reduce paperwork filing costs, while pharmacies can expect a reduction in abandoned prescriptions.

“We are the intelligence within the network,” Skelton said. “We have made substantial progress, now the goal is to go broader.”

Sign up for Data Sheet, Heather’s daily newsletter about the business of technology.

About the Author
By Heather Clancy
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

A woman looks frustrated a computer
AIWomen
Women are avoiding the very technology that threatens them most, as expert warns of a ‘two-tiered AI economy’ approaching
By Jacqueline MunisMarch 21, 2026
5 minutes ago
AIFinance
Why Block’s COO is tracking ‘gross profit per employee’—and how AI is on track to double it to $2 million
By Sheryl EstradaMarch 21, 2026
18 minutes ago
home for sale
AIChatGPT
A man let ChatGPT sell his home. It beat every agent’s estimate by $100K—and closed in 5 days
By Jake AngeloMarch 21, 2026
1 hour ago
LawElon Musk
Musk misled Twitter investors before 2022 buyout, jury says
By Isaiah Poritz, Jef Feeley and BloombergMarch 20, 2026
9 hours ago
bespectacled man scratches the back of his head during congressional hearing
CryptoCryptocurrency
Kalshi locks in $22 billion valuation, gaining slight edge over its rival Polymarket
By Carlos GarciaMarch 20, 2026
12 hours ago
Big TechEntrepreneurs
Mark Cuban reads 1,000 emails a day—now he’s using a Mac Mini to fight the AI-generated flood threatening his clean inbox obsession
By Marco Quiroz-GutierrezMarch 20, 2026
13 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.