How KCHC’s Pharmacy is Transforming Rural Care

In rural Alaska, a man stood at the counter of Kodiak Community Health Center’s recently opened in-house pharmacy, confused.

“I have a significant copay,” he told the pharmacy technician.

The technician double-checked the system but confirmed there was no copay.

In disbelief, the man broke down in tears. At his previous pharmacy retailer, he had paid $2,000 every month for a medication he had to take.

“No one told him his previous pharmacy was out of network, and no one offered another option,” explained Carol Austerman, Chief Executive Officer of KCHC.

Once KCHC launched its in-house pharmacy, the patient’s cost dropped to zero. At the same time, KCHC was able to cover its costs for the refill by purchasing it through a federal discount program available to certain rural community-based providers.

This patient’s experience — and many others like it — drives KCHC’s commitment to contracting with every payer, even when reimbursement is lower.

“We saved this man $24,000 a year on one medication just by filling out some paperwork,” Austerman said. “We’re committed to care for any patient that comes in, and if we’re not in their network, [we’ll work] to get in network with that payer.”

Rewriting What Pharmacy Care Looks Like in Rural Alaska

KCHC opened its pharmacy in December 2024, transforming a small 12×17-foot space inside the clinic into a fully functioning pharmacy. Two pharmacy technicians work on-site, while four licensed Alaska pharmacists oversee operations remotely and provide virtual support and telepharmacist services to patients through a secure platform.

Patients living in the Gulf of Alaska now receive prescriptions faster, more affordably, and with more personal support than ever before.

Because the contracted pharmacists have access to the clinic’s electronic health records (EHRs), they work directly with providers to identify affordable alternatives in real time — something pharmacies outside a clinic typically can’t offer, Austerman explained.

“We care about every pill,” Austerman said. “That’s not just a saying — it’s a responsibility we take seriously. Our patients deserve to understand their medication options, avoid delays, and leave here with the care they need.”

Instead of waiting days or weeks for prescriptions, many patients now leave their appointment, wait 15 minutes, and go home with their medications the same day.

For patients managing multiple prescriptions or chronic conditions, KCHC coordinates refill schedules so patients can pick up everything at once. This approach reduces missed doses and gives patients more control over their care.

Homegrown Solutions for Rural Care

The pharmacists supporting KCHC live and work in Soldotna, and they understand the realities of rural healthcare in ways out-of-state providers often don’t.

“They understand what it takes to ship and store medications in rural Alaska,” Austerman said. “That’s why it was so important to us to work with Alaskan pharmacists who understand the environment our patients live in.”

The team tracks upcoming refills, monitors medication orders, and calls patients ahead of time to coordinate inventory. A secure video system allows pharmacists to review and verify every prescription before patients receive it.

KCHC partners with Cactus, an Alaska-based pharmacy services company, to provide oversight and ensure the pharmacy meets compliance requirements.

Advancing Health Care in Rural Alaska

With daily shipments from Anchorage and a commitment to being in-network with all major payers (currently more than 60), KCHC is proving that rural communities are leading pharmacy innovation.

“Our goal is to fill 50% of patient prescriptions in-house by the end of the year,” Austerman said. “And we’re getting there.”

At its heart, KCHC’s pharmacy — utilizing telepharmacists — reflects what Alaska’s community health centers do best: meet people where they are, listen to their needs, and respond with solutions that make a lasting difference.

“This is not just a pharmacy,” Austerman added. “It’s a lifeline.”

KCHC serves approximately half of Kodiak’s population. Its pharmacy services are available to current patients, with new patients welcome.

Sunshine Community Health Center is following in KCHC’s footsteps and plans to launch its own in-house pharmacy utilizing telepharmacist services this summer —expanding care to rural communities in Southcentral Alaska.