Between PBMs, DIR fees, MAC pricing and clawbacks, the independent pharmacy owners we work with are hungry for proven strategies to transform their business. And who would blame them? Identifying ways to supplement your pharmacy’s bottom line is more important than ever with insurance companies and auditors regularly skimming from the top.
Our R&D team is dedicated to creating profitable and patient-focused member programs, such as RxAnalytics. This proprietary system analyzes pharmacy data to uncover specific ways to increase profit margins, but success is not just about making money.
Is this a shocking statement from the “pharmacy profit” guys? Absolutely! However, we know it’s just as critical to be an excellent team leader.
Every year at the annual PDS Super-Conference, we unveil the newest ideas and programs
programs guaranteed to push you past the competition, add cash to your pockets, and work on you as a leader. Why? Because that’s the accelerant for turning “We’re having a good year,“ into “Our accountant is asking why our profitability is this high!“
As our founder, Dan Benamoz, says, PDS can give you the tools necessary to start the campfire, but leadership will turn it into a roaring bonfire that warms everyone and everything. It’s the rocket fuel that gets the PDS programs not only up in the air but into orbit.
Do pharmacy owners forget to value leadership?
The short answer is no. Everyone has an idea of “good leadership” or can picture someone they admire. However, the reality is that pharmacy school taught you how to be a competent healthcare provider, not how to be a leader or business owner. And while some owners have a natural ability, it’s not the reality for most in this field.
In fact, there are three areas Dan believes aren’t discussed enough at universities that we’ve found to be a critical element to success: ethics, leadership and culture.
The root of unethical behavior is greed. It’s important to discuss this with pharmacy owners because the reality is that our industry, which is dictated by insurance companies and PBMs, is built on…well, greed.
Of course, we want to do the right things for the right reasons, and do them for the greater good. However, in this industry, owners sometimes find themselves pushing the envelope just to get by. They feel the only way to win is to cheat the game, which is simply not true. You can do what’s best for the patient and your business while still being able to sleep soundly at night.
As one of the most trusted professions, a title we all wear proudly, we’re here to improve society. We as pharmacists need to ensure we’re furthering that reputation, not hindering it, especially as we get closer to being more integrative in clinical practices. We have the trust and confidence of many people in the community, so it’s critical everyone is careful. What took our profession and your business a lifetime to build can be ruined with one small misstep.
Your team wants someone to follow. Someone who has a vision that will inspire them, foster job satisfaction and fulfillment, as though they’re contributing to something bigger than themselves. Being the pharmacy owner, inherently most of you have assumed the role of Leader. It’s a tremendous responsibility, and to succeed, it’s essential you know what the expectations are so you can cultivate the right work environment. You want your team to look forward to coming in and feel good about providing an essential service to patients in the community. Good leadership has a trickle-down effect, and that’s what we mean when we say quality starts in the boardroom.
What would the Philharmonic be without the symphony hall? Culture represents the environment in which you operate and while it can be hard to fully grasp, it’s critical to success. But is culture intentional or unintentional? For many pharmacies, it’s unintentional, which means they’re probably making some mistakes. If they simply knew more about what they’re doing, they could really set their business on fire. The good news is that it’s usually just a few broken links, not the whole chain. When you can identify these weak links, you can fix them and begin to nurture a culture with intention.
After profitability, employees are one of the biggest frustrations for business owners.
If employees are one of the biggest frustrations, how do we make sure we’re addressing the challenges properly? How do we get culture and leadership to work for pharmacy owners rather than against them? How do we get it to bring you joy?
While we have the programs and strategies to help, we still believe they are not discussed enough. That’s why leadership and culture are always a major theme at the PDS Conference and why we’re inviting the foremost experts to speak at the 2018 event. After all, we only want the best for our show.
We tend to keep our schedule for the show a surprise, but this year we’re so excited about the big names we’ve invited, that we couldn’t resist announcing that John Maxwell will join us in Orlando. He has authored more than 100 books, many being New York Times Best Sellers, selling over 16 million copies, and was named the #1 leadership expert in the world by Inc. Magazine in 2014.
John’s philosophy that “everything rises and falls on leadership,” motivates his every endeavor to help individuals reach their highest potential, both in personal and professional settings.
To him, there’s no higher goal than to help others realize their significance. He has dedicated his life to growing and equipping others to do remarkable things and lead significant and fulfilled lives. John will discuss…
- How to become a person of influence
- Develop the leader within you and those around you
- And, most importantly, how to fail forward
Here at PDS, we take pride in highlighting some of our incredible solutions partners. We know these companies have the potential to revolutionize pharmacies just like yours through their products and services. We’re excited to introduce Sykes & Company P.A.; read on for their sponsored blog post about why your business needs a pharmacy-specific CPA.
Running your pharmacy is tough, especially in today’s environment. It is important you have a pharmacy-specific CPA in place to help make sure every aspect of your pharmacy’s accounting is taken care of.
When you are looking for a pharmacy-specific CPA, you’ll need someone who:
- Will help improve your daily processes
- Assist with tax reduction
- Provide advisory services critical to your success
The top 6 reasons you need a pharmacy-specific CPA
- A pharmacy CPA knows your industry.
Pharmacy is much too complicated to not have a CPA with experience and contacts in this industry. You should always ask how many pharmacy clients they have as well as basic questions about inventory, third party accounts receivable and gross margins. A CPA with specialized pharmacy knowledge should be relentlessly analyzing these three metrics daily, monthly and yearly, asking the questions that matter and comparing your information to your peers.
Actual inventory counts, perpetual inventory, and monthly dispensing audit logs play an urgent role in analyzing the performance of your pharmacy. Your CPA should be staying on top of your inventory every month and providing valuable feedback.
- Third Party Accounts Receivable
Third party accounts receivable make up a huge portion of your gross revenues with daily EFT deposits and paper check payments. With such a large amount in play, your CPA should understand what your AR third party is, what a reasonable AR third party balance should be for your size pharmacy, and how AR third party impacts your margins.
Did you know that most taxpayers are required to report AR third party on their tax return? Believe it or not, many pharmacy clients we bring on board do not comply with this basic IRS rule, mainly due to lack of CPA experience with pharmacies.
- Gross Margins
Anyone with pharmacy knowledge understands the importance of maximizing gross margins. Each percent increase or decrease in margins can have a huge impact on your bottom net income amount. With such a large amount at stake, your CPA must understand what impacts your margins and what a reasonable and accurate depiction of your gross margin should be for your pharmacy based upon your “blend” of revenue (ie: compounding, specialty, DME, OTC etc.). And, they must have experience about how to help boost margins. Your CPA should also know where you stand vis-a-vis your peers in the industry of similar size revenues.
- A pharmacy CPA is responsive.
When you have a question or a need, you shouldn’t have to wait a few days for a response. In today’s environment, people want instant feedback, so find a CPA who provides an instant response. This keeps you informed every step of the way.
- A pharmacy CPA is proactive.
In addition to being responsive, you want a CPA that is proactive. Many CPA and accounting firms are reactive – it is the nature of the industry. However, times are changing and being proactive is what the best firms are doing for their clients. The best firms are constantly being proactive and thinking several steps ahead for their clients.
Finding these attributes are crucial to you and your business. If you desire to be steps ahead like some of your most successful peers, you need to surround yourself with the right team.
About the Author:
Sykes and Company P.A. is a qualified, responsive and proactive CPA that can help pay huge dividends for you and your business. If costs are an issue, remember the saying: if you think it’s expensive to hire a professional, wait until you hire an amateur.
With Game of Thrones season in full swing, we noticed some key strategic lessons in the series that apply to life and business. Indulge us for a moment as we bring you through some hard lessons in business, life, and pharmacy from our favorite Game of Thrones characters. This is relevant, we promise!
Lesson 1: Never Underestimate the Importance of Perseverance.
Sure, no one likes Cersei Lannister, but look at the lesson she imparts to us; unbridled determination and perseverance is a cornerstone of success.Those who don’t believe it should look at how independent pharmacies are still thriving despite PBMs, DIR fees, and mega chains. With the right knowledge, unwavering determination, and confidence in your convictions, a thriving, successful business is within your reach.
As a pharmacy owner, you can find out how to get that knowledge and develop the confidence in your decisions here.
Lesson 2: Don’t Let the Past Determine Your Future
Throughout his life, Jon Snow believed what people told him; there were limits in his life, and the faster he accepted it, the better. Well, look who’s King of the North now! Okay, okay, but our point is that in business (pharmacy or the business of ruling) you have to know when to disregard limitations, self-imposed or otherwise.
Driven by a clear vision, Snow is focused on getting the right tools, in this case, Dragon Glass to accomplish his mission. Others in his company lack perspective, leaving him to take the first steps into the unknown. An inspired vision for your pharmacy business isn’t enough; you need the right tools and team. Improvement and growth require thoughtful execution, so seek out the best in your industry and take a calculated risk; the benefits are worth it.
Lesson 3: An Educated Mind is Sharper than a Sword
Tyrion Lannister was not born equipped for success in the traditional Westerosi way, but he has ascended the figurative ladder considerably through on-going education. Continuously sharpening your mind, expanding your skills, and adding to your area of expertise ensures that you and your team never become obsolete.
Tyrion teaches us a powerful lesson about upward mobility through on-going development both personal and professional. Education doesn’t only apply to the leader. Training your team is key to achieving an efficient, results-driven culture. How do you know when to educate your team? These are the questions you should ask yourself as a leader who has a team in need of training.
Lesson 4: There is No Template for Success
Daenerys Targaryen started out as a character on the fringes, beholden to no one. At best, success was unlikely. At worst, if she failed, she’d be a footnote. Independent pharmacy owners, like Danaerys, have been pushed to the edges and all but forgotten in light of challenges such as chain stores and problematic PBMs.
Far from being marginalized, exceptional pharmacy owners, much like Daenerys have managed to maintain an unbreakable edge after enduring waves of inequity by finding strength in numbers. The most progressive pharmacy owners have started to discover their tribe and demonstrate the power to impact a brighter future.
Just like Khaleesi herself, independents across the nation have discovered a new way of thinking. Join the top 20% of them in February at the 2018 PDS Super-Conference. Grab your dragons and join your tribe in Orlando! Okay maybe leave your dragons at home (fire hazards and all). Find more info here.
Lesson 5: Start Where You are and Use What You GoT (we couldn’t help it).
As a lesser known, but pivotal, character, Lord Varys signifies the power of resilience and resourcefulness. He uses his little birds to make informed decisions on data points to advance in the game. It seems Varys has a thousand hands and ears, all able to measure, track and assess the current pulse of the environment and act accordingly.
Just like Lord Varys, PDS members use a vast and comprehensive system that analyzes existing data to discover a way to dramatically increase their profit per prescription. The PDS member exclusive system is called RxAnalytics. Curious? Find out more here.
Lesson 6: Watch, Observe, Act
In a time where most people shoot first and aim later, Littlefinger understands that there is power in patience. There are three elements to his formula for success; observe, assess, and then make an informed decision. Sustainability is built on timely and informed decisions. We can all take a cue from Littlefinger on playing the long game. His patience and leveraging of the right relationships keep him moving forward. Applying these characteristics to your business will do the same.
PDS has more than 1,000 member pharmacies, and many of them make up the top 20% in the industry. Coincidence? Not at all. These owners know that patience, key resources, and the right relationships will drive your success. Join the most successful pharmacy owners in the nation, ready to welcome you to the team. The PDS Super-Conference is where they’ll be. Will you join?
Lesson 7: You Can Be aVictim, or You Can Win
It’s fitting that we end with a character who has been beaten and down-trodden, which perfectly analogizes independent pharmacies against the unfair pharmacy environment.
Arya Stark chose to rise above the treatment she has endured to become the deadliest wolf in sheep’s clothing. Her lesson is simple and one we reiterate to our members: You have the choice on how you react to your circumstances. You can be part of the owners that succumb to the inequities in our industry or you can gain new skills and choose to be a fighter and triumph over your adversities.
You can be a victim, or you can be a victor. Which will you choose?
Join us to see what we’re all about at the 2018 PDS Super-Conference in Orlando Florida on February 22-24, 2018 at the Orlando Convention Center. If you are a pharmacy owner, manager, key employee or anyone in the industry concerned with the state of pharmacy, you must join us to discover the solution that the top 20% of the industry have already discovered. Own your future and don’t let the game beat you down. Click here or below to find out more.
Here at PDS, we have many incredible solutions partners that have the ability to revolutionize pharmacies through their products and services. We’re so excited to share with you one of them — First Financial Bank. Read on for their guest blog post below about refinancing your pharmacy debt. Enjoy!
Cash flow is critical to any small business, and the world of independent pharmacy is no exception. In today’s environment, a rising number of business owners are acquiring debt with unreasonable repayment terms. In this case, refinancing may be a viable option for business owners. When looking at a potential refinance, you need to evaluate your existingdebt and analyze the repayment requirements to see if this option contributes to improving your business’ overall financial health.
There are many different types of debt in addition to traditional bank loans and lines of credit. Those include owner financing, Small Business Administration (SBA) or conventional loans, wholesale debt, business credit cards, and merchant cash advances that require daily payments. An independent pharmacy owner may have one or any combination of these debts. Refinancing can potentially reduce loan payments, extend the term of the debt, consolidate multiple loans into one lower payment, and improve working capital. Additionally, paying off creditors enhances the business reputation of the pharmacy, reduces the possibility of litigation, and helps re-establish solid relationships between the pharmacy and key suppliers.
If you are considering refinancing; you will want to ask yourself several questions before deciding to refinance.
- What is your current interest rate?
- Does your loan have a balloon payment coming due?
- Are there prepayment penalties on the current debt?
- Do you have stacked debt (multiple loans: bank loans, credit cards, etc.)?
- Do you have a good credit score?
- Does the pharmacy have prepared financial statements?
- Will the pharmacy’s cash flow support the refinanced loan?
- What is the cost of refinancing?
- Do you have the patience to deal with the paperwork involved?
- Will this improve your cash flow?
- Is the Small Business Administration (SBA) a viable option?
Interest rates are at historically low levels, even with the recent increases. If the business owner has stacked debt or higher interest rate loans in place, a reduction in your interest rate could significantly improve cash flow.
A credit score is also something to consider in the refinance process. A score of 680 or higher is usually preferred by lenders. The pharmacy also needs to have credible financial statements that show that the refinanced debt can be supported by the pharmacy’s current cash flow after removing the old loan payments.
Owners should also examine the cost of the refinancing. Loan fees, appraisals, title work, and other costs associated with refinancing range from 3% to 6% of the loan amount. However, these fees can be included in the loan and paid over the term of the note. Typically there is no equity injection, also known as a down payment, required for refinancing debt.
The SBA is a viable option for refinancing business debt for independent and community pharmacies. Because of the complexity of the SBA loan, choosing a lender with a dedicated SBA division and expertise in the pharmacy segment is highly preferred.
Refinancing your current debt to improve cash flow may be a useful option for independent pharmacy owners to free up cash flow. If you think this could be an option for you, find a knowledgeable lender that specializes in Independent Pharmacy Financing to answer all of your questions.
Know the Red Flags, or Sink.
Pearson’s Law: Everything measured improves, and everything measured and reported on improves exponentially.
When is the last time you measured your pharmacy’s financial progress? We’re willing to bet that most reading this don’t take a deep dive into what makes their pharmacy thrive — and what is bogging the business down.
Understanding your financial statements is a necessary game business owners must play if they intend to win. Far from a boring topic, speaking your pharmacy’s financial language will become fun once you can interpret what your statements are trying to say to you. Once you tap in, it will start telling you if you are on the right track, what initiatives or tactics are viable, and what ventures you should drop immediately.
Waiting until symptoms manifest shouldn’t be the time to look into your data. You must be able to identify what’s happening in your business long before things go south. Below are some red flags you should look out for that signal a vital need to look into your statements immediately.
Red Flags to Look Out For:
- Your pharmacy cash balance is low.
- Your payables are growing, but your cash is not.
- You have little or no understanding of what your true accounts receivable balance is.
- Your payroll is not the ideal of 11-13% of revenue.
Learn to Speak Your Business’ Financial Language
Cashflow and understanding financial records are your keys to discovering what your business is saying to you. Pharmacy Development Services offers two ways to take control of your financial data.
- Cash Flow 101 Workshop: This training course teaches you to understand the language of your statements and how to check the pulse of your financials so you can determine the next course of action you need to take as a business to keep that arrow moving up. In this workshop, pharmacy owners step into the lion’s den to learn how to read, understand and interpret financial statements along with other pharmacy data to help you make better management decisions and seize opportunities. Get an insider’s look at what the Cash Flow 101 course is all about by watching this video of one of the workshops below. Find more details and catch the next session here.
- PDS Bookkeeping Services: Level up your pharmacy by taking control of your finances. We take your messy pharmacy financial records, clean them up, make them easy to read and enable data-driven decisions. We’ll also standardize your chart of accounts, convert your old QuickBooks and fully reconcile all of your bank and credit card accounts — plus more! Find out more about our comprehensive pharmacy package and inquire about the service here.
Get an insider’s look at Cash Flow 101 from an attendee’s eyes below:
Don’t wait until those red flags sink your ship. Understanding your financials can mean the difference between thriving and closing your doors for good.
For more information on Pharmacy Development Services Pharmacy Training Courses, click here.
Anyone who manages an independent pharmacy knows how intractable the challenge of inventory management can be, whether perpetual or not. Cycle counting, managing C-II logs, order point adjustments, and tracking expired stock are among the labor intensive processes that can drastically impact the profitability of your business. How can a pharmacy with competing demands on technician and pharmacist labor keep perpetual inventory without a significant time investment?
You can hit a “profitability home run” by maintaining accurate perpetual inventory that can reduce the overall inventory carry, minimize stock-outs, and enhance the overall standard of patient care. The problem is one of automation—how can a pharmacy with competing demands on technician and pharmacist labor keep perpetual inventory without a significant time investment? How does a pharmacy balance profit vs. cashflow?
The current model for keeping perpetual inventory should be well-known to anyone who manages daily operations in an independent pharmacy:
Manual Perpetual Inventory Management Cycle
The end result of these processes is, hopefully, accurate perpetual inventory. But the major drawback is the amount of time investment required to have someone cycle count, manage par levels and reordering, check in totes against a manifest, and physically place bottles on shelves. And if someone calls in sick, or it’s a busy Monday and there’s no time, or a technician forgets to cycle count, it can quickly become extremely difficult to keep up with the management cycle. The result is often the “garbage in, garbage out” problem, which is the tendency of manual inventory systems to drift over time, leading to inaccurate data, which in turn causes stock-outs, incorrect order quantities, and ultimately poorer customer service this crushes cashflow and suppresses profit.
Automating the cycle eliminates the problems inherent in the manual process, and is now finally achievable with the introduction of the RxSafe 1800.
Automated Perpetual Inventory Management Cycle
With the RxSafe System, manual processes are replaced by automation, and stock bottles are actually stored in native packaging. This video explains the basic functionality of the system in more detail. Essentially, the RxSafe system is completely unique to the marketplace and shifts the focus of pharmacy automation from vial filling to inventory management, control, and efficiency. The time you save will allow you to pay closer attention to money-making opportunities, adherence programs, pharmacy services, and patient consulting, to name a few.
Add Datarithm to your RxSafe and realize the complete automated perpetual benefit from the cloud! Datarithm’s innovated features include: automated demand forecasting, order point updates, inventory returns and transfer recommendations, along with advance analytics in easy to understand reports. Datarithm’s customizable inventory solution adapts as your business changes ensuring you have what is needed, in the proper amounts, secured in your RxSafe!
Check out our FREE webinar with RxSafe to learn more about what automation can do for your pharmacy’s inventory. Being able to get a handle on this vital side of the pharmacy business will pay dividends down the road.
Committed to the excellence of the pharmacy industry, the number one goal of the team at RxSafeGrand Event Sponsor at the PDS All-Star Super Conference, is to streamline retail pharmacy workflows and inventory management.
In the following casey study, we spotlight the team at Paw Paw Village Pharmacy and how they used their RxSafe 1800 system to diminish $98,000 in excess inventory.
Meet Paw Paw Village Pharmacy: RxSafe 1800 Customer
Paw Paw Village Pharmacy is a family-owned pharmacy that has served the residents of Paw Paw, Michigan for more than 35 years. They pride themselves on providing fast and friendly service and are dedicated to helping patients find the best and most cost-effective solutions for their needs. Paw Paw Village currently fills an average of 450 scripts per day, and over 700 prescriptions on a busy Monday.
The Pharmacy’s Challenge
Paw Paw Village had a lot of technicians walking back and forth pulling bottlesand counting drugs as fast as they could on multiple counters throughout the pharmacy in order to keep up with demand. This negatively impacted their technician hours, error rate and service delivery.
In addition, Paw Paw Village was considering purchasing another pharmacy, which would cause their inventory value and prescription volume to increase by over 20% overnight. They would need a way to incorporate, manage and track this new inventory.
Finding Inventory Management Solutions
Paw Paw Village purchased the RxSafe 1800 two-tower system in order to increase accuracy and efficiency, and improve patient safety. Eighty percent (80%) of the pharmacy’s prescriptions are now filled through the RxSafe. The system pulls medications by bar codes so the NDC codes are correct and there is far less room for errors.
Paw Paw Village acquired another pharmacy and its inventory a year after purchasing the RxSafe system. The RxSafe allowed them to assimilate all of their new inventory into their pharmacy over the course of a weekend. RxSafe’s bottle-picking algorithm automatically selected soonest- to-expire medications first, which enabled them to dispense newly-acquired inventory that might otherwise have been discarded. Over a period of six weeks they were able to deplete $98,000 of excess inventory.
Paw Paw Village’s Results
- Security. Secure storage and tracking of drugs prevents theft and diversion. Joe Romph, co-owner told us, “With the reporting features we’re able to track the movement of each prescription bottle to show what prescription it filled and what technician filled it. The tracking and accuracy are unparalleled.”
- Accuracy & Efficiency. Eliminate filling errors and increase workflow efficiency. According to Joe, “We don’t have pulling mistakes anymore. Technicians used to pull and count the incorrect medication and if there was a mistake we wouldn’t catch it until the pharmacist checked it. We wasted time and effort by having someone count something that was incorrect. Then they would put the drug back in the bottle, retrieve the correct drug, and recount it. With the RxSafe, we don’t have any mistakes because it pulls by the barcode.”
- Inventory Management. Increase inventory turns and reduce physical inventory. Joe says, “We’ve seen our inventory turns go from 19 turns to 25 turns per year. When we acquired a new pharmacy recently and added their inventory to our pharmacy it was easy with the direct-to- overstock feature—it’s a great program and it saved us!”
- Reduction in Labor Hours. Reduction in the time required for technician counting, pharmacist verification, and inefficiencies related to inventory management. Joe shared, “Three months after introducing the RxSafe we saw a reduction in technician labor hours of between 200–250 hours per month. This reduction basically covers the cost of the RxSafe.”
- Profitability. Increase inventory turns, reduce labor hours and increase profitability. According to Joe, “Along with a quieter, smoother and more efficient operation, we’ve also able to increase our inventory turns and our profit with the RxSafe.”
“With the reporting features we’re able to track the movement of each prescription bottle to show what prescription it filled and what technician filled it. The tracking and accuracy are unparalleled.”
“Filling prescriptions using the RxSafe completely changed our workflow. We used to have multiple technicians pulling drugs, filling prescriptions and lining them up on different counters for the pharmacist to check. Now that 80% of our volume is filled at the RxSafe with only one tech, we have a much more organized process of setting up the prescriptions on one counter for the pharmacist.”
“I’m happy with the RxSafe because it’s improved our inventory turns, reduced my labor hours, and it’s given us the opportunity to take care of our customers in new ways (such as MTM, blister packaging, and delivery service).”
About Paw Paw Village Pharmacy
Paw Paw Village Pharmacy is a family-owned, professional pharmacy serving the residents of Paw Paw, Michigan and the surrounding communities since 1982. The Paw Paw Village Pharmacy staff consists of two full-time and two part-time pharmacists, as well as 11 technicians. At Paw Paw Village Pharmacy, we pride ourselves on bringing you individualized service and attention and are dedicated to helping you and your physician find the best and most cost-effective medication for you.
Visit RxSafe, LLC
For pharmacy owners who are focused on improving the accuracy, safety, and security of their business operations, RxSafe is an automated, high-density robotic storage and retrieval system that helps pharmacies avoid medication errors and enhance narcotics security. Unlike traditional automation, our products provide the peace of mind that comes with unparalleled accuracy in the tracking of pharmacy drugs and narcotics.
RxSafe, the Grand Event Sponsor at the 2017 PDS All-Star Super Conference is fiercely committed to challenging conventional wisdom, upending the status quo, and developing technology that will define the future of the retail pharmacy industry.
In the following pharmacy automation case study, we feature RxSafe customer Ed Potts, owner and pharmacist at Medicine Shoppe 0805. Continue reading to see how his team leveraged RxSafe’s technology to minimize errors during peak hours and streamline their inventory control processes.
Meet Ed Potts: RxSafe 1800 Customer
Medicine Shoppe 0805 is located in Fairfield, Illinois and focuses on providing caring service for their customers. The owner and pharmacist, Ed Potts, has spent the past several years focusing on changing the company culture. Technicians now think of themselves as health care providers and really listen and educate their customers. Potts says that owning a pharmacy isn’t just about filling prescriptions, it’s about caring for people.
The pharmacy processes an average of 275 scripts per day and primarily serves older people who are on multiple medications. They provide free delivery for people who are unable to leave their homes and offer specialty services such as flavoring antibiotics for children. The pharmacy has many loyal, long-term customers, including one who has been with them for almost thirty years.
His Pharmacy’s Challenge
Ed Potts’ main concern as a pharmacist is accuracy. He realized that they weren’t achieving 100% accuracy during peak periods, which was unacceptable. Potts says, “The medication has to be the right drug, with the right count. It gets very busy sometimes and mistakes can be made. It can be easy to grab the wrong medication strength or count the incorrect dose.”
He was also focused on improving inventory management and control. Knowing where specific drugs are located and how many are on hand is important, as well as tracking expiration dates and usage.
Potts was looking for a solution that would address these key issues as well as free up pharmacist and technician time in order to allow them to provide a higher level of patient care to their customers.
Finding a Solution
As Ed’s Rx got busier he realized something had to be done. Ed’s Rx purchased the RxSafe 1800™ and Eyecon™ to work in tandem with their existing ScriptPro 200™.
Potts shared, “We‘ve had a ScriptPro 200 for eight years and we set it up next to the RxSafe so the workflow is very efficient. We liked the ScriptPro, but it’s inconvenient to have to keep filling cells. We only use the ScriptPro for large quantities that we go through quickly.”
- Improved accuracy. One hundred percent accuracy for drug and dose when proper processes are followed. Potts says, “RxSafe solved my accuracy problem. I know what comes out of the machine is always the right drug and the right count.”
- Inventory management and control. Previously Ed’s Rx had an inefficient and time consuming manual inventory system. Potts says, “Now a technician can just check the RxSafe inventory report to see what we need to order. We can also get a report of expired drugs so we can send them back.”
- Space savings. Raise productivity, increase accuracy and free up valuable retail space for other uses. “Our RxSafe automation freed up space, time and people in our pharmacy so we could do other things.”
- Labor efficiency. Reduction in the time required for technician counting, pharmacist verification and inventory management, and as a result, reduction in the labor force. Potts shared, “RxSafe has helped our pharmacy tremendously. The machine saves time in pharmacist verification, technician counting and filling, and inventory management. Now I only need one person instead of two and have been able to move a tech over to our MedSync Program.”
- Improved patient care and introduction of new programs. Patient care improves and resources can be reassigned. According to Potts, “RxSafe has allowed us to free up a significant amount of work time, which allows us to provide a higher level of patient care. We’ve been able to add a Medication Synchronization Program as well as recently introducing a Weight Loss Program, further benefiting our patients.”
About Ed’s Rx / Medicine Shoppe (MS0805)
Ed’s Rx is The Medicine Shoppe Pharmacy in Fairfield, IL. We are here first and foremost for our patients because we care. We want you to have a welcome experience when you enter our doors and to receive the best possible service with caring, trained professionals who will listen and provide you with what you need for your health. We offer a full range of products and services to meet all your pharmaceutical needs. Our pharmacy staff is always available to answer your questions and assist you in any way possible. Our goal is to always provide our patients with superior service and compassionate care.
Connect with RxSafe!
To learn more about RxSafe and their cutting-edge pharmacy automation technology, go to www.RxSafe.com. Also plan to stop by their booth #100 at the 2017 PDS All-Star Super Conference in February in Orlando, Florida.
Read Another Pharmacy Automation Case Study!
Have a few more minutes? Learn how Jana Bennett utilized technology to increase her pharmacy’s output… without having to hire a another technician! Read the pharmacy automation case study now.
Most business owners think that they’re safe from personal liability when they formed their corporation or LLC. This protection is called your “corporate veil.” For the most part, this is true… if you follow the rules.
If you don’t follow the rules of the club to keep you in the bubble of protection, a court can pierce your corporate veil. This leaves you as the owner, your shareholders, or members of your corporation or LLC personally liable for corporate debts. Once your protection is peeled back, creditors can go after your home, bank account, investments, and other assets to satisfy the corporate debt. It is very easy to open yourself up to this threat and leave you vulnerable to litigation that will not only target your business, but your personal assets. Business owners are being attacked by entities like the IRS and lawyers who lie in wait to catch your protection off guard.
What can you do as a business owner?
You need to follow the rules to keep your protection firmly in place. The asset protection and tax saving benefits are only guaranteed if your company follows specific rules of operation—known as Corporate and LLC compliance. These rules state that your company needs to “act” like a Corporation or LLC. Taking action such as consistently recording minutes and instituting resolutions are a few examples. Follow these defined rules and you have all the benefits that Corporations and LLC promise. Disregard these rules, and you could potentially lose everything.
Our very own Dr. Lisa Faast had a conversation about how pharmacy owners can protect themselves with Scott Burnett, a former trial lawyer who is considered to be one of the nation’s leading legal authorities on asset protection and tax education for corporations and LLC’s. Many of his cases involved peeling back the protection of corporation and LLC’s, and attacking the personal assets of the owners. He now teaches business owners how to avoid frivolous litigation, and over taxation.
Scary stuff, right?
Listen totheir short discussion to keep you on the right track below. Make sure to listen to the end for an incredible gift for you that will keep your veil in place and protect you from litigation.
The PDS Super-Conference is the pharmacy event of the year that is guaranteed to change the way you run your business. Join us for the next event in February! Click below for details.
There is no shortage of options for owners looking to impact pharmacy growth. Successful independent pharmacy owners must maintain a balance between growing profits, investing in the business, and managing operational cash flow. This formula is not new. However, in light of significant industry shifts and stringent regulations; the balance is more challenging to achieve. Success is a matter of surrounding yourself with the right team in an environment that will cultivate pharmacy growth. The PDS Super-Conference and premier sponsor Live Oak Bank are the solution partners you need to establish successful programs and unlock capital for your pharmacy.
In an industry where large competitors have unlimited access to funds, and you need capital to implement essential profit programs; where do you start?
Step 1: Know Your Pharmacy Market
Understanding where your profits are coming from is the first step in taking your business to the next level. Passively waiting for the next prescription to walk through the door does not work anymore. The waiting game will not keep you operating at full potential. Actively targeting the most profitable aspects of your business keeps you on top of market conditions and prepared to adjust course in the face of changes.
Step 2: Managing Pharmacy Cash Flow Effectively
Cash is king, we all know it. Your pharmacy should have enough cash flow to reinvest back into your business and employees from marketing to new equipment, all while maintaining salaries and keeping the lights on. Mismanagement of or inattention to cash flow will limit how far you can take your pharmacy. It affects how banks look at you when applying for loans, and your ability to scale successful initiatives.
These are just a few of the tips that we cover with independent pharmacy owners at the Annual PDS Super Conference. Our goal is to provide owners with the tools and solutions to establish a solid foundation, kickstart pharmacy growth, and provide ongoing support you navigate the industry in the coming year.
Live Oak Bank is one of the largest investors in community pharmacies in the industry and has provided nearly $750 million in loans since 2010. They provide funding and packages to address all of your pharmacy needs.
- Quick loan closes – approximately 47 days
- Favorable terms with low-interest rates
- Low equity requirements
As your dedicated solutions partner, Live Oak Bank can assist your pharmacy with everything from facilitating prescription file purchases and software solutions to streamlining improved inventory management. As a major sponsor of #PDS2017 Live Oak Bank will be in attendance, making it the perfect time to stop by their booth and learn more about their loan capabilities, low-interest rates, and equity requirements.