What does the abbreviation AWP stand for in pharmacy?

The abbreviation AWP stands for Average Wholesale Price. This terminology is widely used in the pharmaceutical industry to indicate the average price at which wholesalers sell drugs to pharmacies. The AWP serves as a benchmark for pricing and reimbursement purposes, allowing pharmacies and payers to evaluate drug costs.

The Average Wholesale Price provides a standardized reference that can be used by pharmacies to assess pricing strategies and by insurers to establish reimbursement rates. Understanding AWP is crucial for pharmacy technicians, as it plays a significant role in medication cost management and overall financial operations within a pharmacy. Recognizing this definition helps ensure that pharmacy technicians are aligned with industry standards and financial practices when handling medications and processing claims.