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New Flexibility for Compounded Medications and Veterinary Practice in HB26-1198  

New Flexibility for Compounded Medications and Veterinary Practice in HB26-1198  

This legislative session, CVMA identified and pursued an opportunity to make meaningful improvements to Colorado laws governing the prescribing and dispensing of compounded veterinary medications. Existing statutory requirements created challenges for veterinarians and, in some situations, limited flexibility in aligning treatment with patient and client needs. 

House Bill 26-1198, sponsored by Representative Karen McCormick, DVM, takes effect January 1, 2027 and includes several changes designed to better support the realities of veterinary practice while maintaining important safeguards. These changes will help veterinarians tailor treatment to patient and client needs and reduce unnecessary barriers in delivering care. 

Keep reading to learn what these changes may mean for you, your patients, and your practice.

See the full bill here.

Below are answers to some of the questions veterinarians are already asking. 

Frequently Asked Questions 

Can I now use compounded medications for ongoing conditions? 

Yes.

Under HB26-1198, a veterinarian may compound and dispense compounded drugs for a patient when: 

  • A valid veterinarian-client-patient relationship (VCPR) exists; and 
  • The veterinarian determines the compounded medication is desirable or necessary for treatment of the patient’s condition. 

Does the law still limit compounded medications to emergency situations? 

No. 

Prior law generally limited dispensing of compounded office stock medications to emergency circumstances. HB26-1198 removes that restriction. 

Am I still limited to a five-day supply? 

No. 

HB26-1198 removes the prior statutory limitation that generally restricted dispensing to no more than the amount needed for five days of treatment. 

For many veterinarians, this may be one of the most meaningful practical changes in the legislation because treatment duration can now be better aligned with clinical judgment and patient needs. 

Do I still have to determine whether a pharmacy can provide the medication first? 

No. 

The bill removes prior language requiring a veterinarian to determine that a compounded medication could not be obtained from a prescription drug outlet in a timely manner before using compounded office stock medication. 

Does this mean veterinarians are considered pharmacists when they prescribe or dispense medications? 

No. 

HB26-1198 clarifies that veterinarians administering, distributing, dispensing, or prescribing prescription drugs within veterinary practice are not engaging in the practice of pharmacy solely by performing those activities and are not subject to State Board of Pharmacy discipline solely for those actions. 

What exactly is “office stock”? 

For purposes of these provisions, office stock generally refers to compounded medications: 

  • Obtained from a registered prescription drug outlet; 
  • Maintained without a specific patient already identified; and 
  • Later administered to a patient or dispensed to a client. 

What is considered a compounded medication? 

The law broadly defines compounding to include: 

  • Preparing, mixing, assembling, packaging, or labeling medications pursuant to veterinary orders or professional judgment; 
  • Activities associated with research, teaching, or chemical analysis; and 
  • Preparing medications in anticipation of routine prescribing patterns. 

What stays the same? 

Several important requirements remain: 

  • A valid veterinarian-client-patient relationship (VCPR) is still required; 
  • Veterinarians must continue complying with applicable laws and professional standards; and 
  • The State Board of Veterinary Medicine may adopt implementing rules. 

Is this the end of the process? 

Not necessarily. 

HB26-1198 authorizes future State Board of Veterinary Medicine rulemaking related to these provisions. CVMA will continue monitoring implementation and will provide updates and practical guidance as additional information becomes available. 

The result: greater clarity, fewer unnecessary barriers, and practical improvements designed to support veterinarians doing what they do every day — caring for patients.