Pharmacy Profits and ROI Archives | Pharmacy Development Services

Discover new programs and niche strategies to increase revenue and pharmacy profits.

Pharmacy Marketing: Attract New Patients from Store Closings

September 25, 2019/in All, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by Matt Tompkins

Last month Walgreens announced the closing of 200 stores. Last April Fred’s decided to begin closing 159 stores and stated that they were getting out of pharmacy. We also heard about Shopko going out of business. These changes in the industry mean thousands of patients will be looking for a new pharmacy and YOU, the independent pharmacy, are their best option. Therefore it is time to kick your pharmacy marketing into gear.

Now that the closings are underway this presents an opportunity to attract those patients. We thought it would be helpful to remind PDS members and the independent pharmacy community at large about the first steps to reaching (and attracting) these patients.

Some of the action items below are repeats from our blog How to Leverage Big Box or Chain Store Closings back in in May of 2016 when Walmart announced their store closings.

At PDS we classify our pharmacy marketing efforts into three buckets: inside the four walls, outside the four walls and digital marketing. Within each of these groups, there are steps you can take to start attracting new patients.

Building these relationships and ensuring that your customers are happy within your own independent pharmacy business is very important. Below are three ways you can strengthen your skills towards more profitable relationships with your pharmacy’s customers.

Inside the Four Walls

Are you ready to take on more customers? If you were to bring in 100, 200 or 500 new patients, would you be able to accommodate them and provide excellent customer service? Your new patients need to see, feel and experience an unprecedented level of service. Make sure that you have a New Patient Process and New Patient Packet set up or updated.
Promote your Referral Program to your existing patients. Use your current patient base to promote the valuable services you offer.

Outside the Four Walls

As soon as you hear about a closing, make your first stop a visit the store’s management. They are probably concerned about their patients and by establishing a relationship with them, they will feel comfortable referring their patients to you. During your visit there may also be an opportunity to recruit some great talent.
Use traditional marketing techniques. Put up a banner outside your store stating that you welcome new patients. Send a direct mail postcard in your area.
There is some urgency to getting this done so lean into your local printer to get these materials produced quickly.

Digital Marketing

Use social media to reach new customers. Create a Facebook ad with photos of your team and your pharmacy that will be displayed within your target area. Be specific about the store closing and that you are welcoming new patients.

In your communication to these new patients, it is important to convey that their health and well being are your priority. Show them that you can offer quality care, convenience and competitive pricing. If you have an efficient medication synchronization program, promote the benefits it will offer them as a patient of your pharmacy. At a time when these patients need to make a switch, we have a great opportunity to show them that an independent pharmacy, your pharmacy, is the best place for them.

For PDS members, log into PDSadvantage to find the applicable pharmacy marketing resources in the Marketing section of the Knowledge Library that will help you win these new patients. The How to Develop Marketing Campaigns program, the New Patient Process, our Marketing Mastermind calls and the Make the Most of a Closing Competing Pharmacy are all available to you with additional detail so you can accelerate your implementation.

How to Build Profitable Relationships and Create Customer Delight in your Independent Pharmacy

July 9, 2019/in All, Pharmacy Profits and ROI, Pharmacy Staff Development /by Ali Maiorana

Here at PDS, we take pride in highlighting some of our incredible exhibitors. We know these companies have the potential to revolutionize pharmacies just like yours through their products and services. We’re excited to introduce GRX Marketing, pharmacy marketing experts who offer customized solutions for your pharmacy’s unique marketing needs. Read on for their sponsored blog post about creating customer delight and building profitable relationships in your independent pharmacy.

Customer relationship management. A simple enough concept that focuses on just that; managing customer relationships. While every business, and person, has their own methods of customer interaction, the building and maintaining of profitable customer relationships is often the biggest piece that needs to be honed.

According to a study conducted by SmallBizTrends.com, a 5% increase in customer retention can lead to an increase in profits of between 25% – 95%. Additionally, 47% of customers would take their business to a competitor within one day of experiencing poor customer service!

Marketers define customer value as the customer’s evaluation of the perceived differences between all the costs and benefits of competing companies. This is often the primary reason they choose your independent pharmacy, rather than anyone else.

Think about the stores that you are loyal to (grocery, restaurant, gas station, convenience stores, etc.). Why do you keep going back? Is it the prices, the products, services offered, location convenience, or is it the customer service? Why do you continue to use them, rather than any of their competitors? It’s because at some point, you decided to value them for what they have to offer. Now think about how much money you have given them over the years, compared to their competitors.

Three Ways to Gain More Profitable Relationships

Be adaptable. Independent pharmacists know as well as anyone that no two customers are alike and even the same customer can be different week to week. No matter who you are talking with, be sure to be empathetic, patient and focus on delivering clear communication.
Practice active listening. Active listening is a technique that is used in counseling, training, and solving disputes or conflicts. It requires that the listener fully concentrate, understand, respond and then remember what is being said. As it relates to independent pharmacies, active listening can lead to improved sales and patient adherence by constantly thinking about what each customer needs and what products or services you can provide to help them. Active listening lets you show your respect, support, and concern, and promotes trust between you and the customer.
Provide a way for customers to provide feedback. In-store and email surveys are a great way to gauge feedback from your independent pharmacy customers. The good, the bad, and the ugly are all important to know so that you can continuously improve and avoid having unhappy customers voice their feedback publicly. By being open to suggestions and criticisms, you are showing your customers that you are listening to them and their concerns. More importantly, you are willing to change based on that feedback. Once you have developed those relationships, and customers continue to come back month after month, the next step is to ensure they stay happy. The easiest way is to simply go above and beyond whenever possible.

Examples of Going Above and Beyond for Your Pharmacy Customers

Start offering a rewards program
Send happy birthday messages
Start a new patient welcome program
Add little goodies to their bag when they pick up their medications
Offer one month free of medication packaging
Host a customer appreciation event

There are so many things that can be done to help create delight with your independent pharmacy customers. The bottom line to keep patients happy is to consistently deliver what you promise and then continually strive to deliver more. Any independent pharmacist can fill a prescription, but only the best goes above and beyond for their patients!

As fellow pharmacy owners, GRX Marketing knows what works! Over the past decade, we have perfected the art of developing, and implementing, marketing plans for each independent pharmacy’s unique needs. By customizing proven marketing tactics such as in-store, email, patient outreach, social media and more, our program allows pharmacy owners to focus less on marketing their business and spend more time on creating happy customers. Contact us today at www.grxmarketing.com or call 515-280-2914.

Using Adherence Packaging to Grow Your Independent Pharmacy Profits

June 25, 2019/in Pharmacy Compliance, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by Ali Maiorana

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 RxSafe’s blog post about adherence packaging services.

Independent pharmacy owners can no longer sit on the sidelines when it comes to evolving and growing their services to compete with companies like Amazon, CVS and Walgreens. While there are many opportunities for you to grow your business and profitability, developing an adherence packaging program should be at the top of your list.

At the 2019 PDS Super-Conference, RxSafe assembled five independent pharmacy owners, with a collective 37 years of experience in adherence packaging, and asked them to share what they have learned. These pharmacists have tried all manners of adherence modalities before arriving at what really works.

Through a series of questions and answers in this blog, they’re going to give you their hard-won advice and insight.

The following people featured at the breakfast session:

Amjad Abukwaik, Sheefa Pharmacy in Paterson, NJ
Bruce Kocian, Gibson Pharmacy in Athens TX
Kyle Lomax, Southern Pharmacy in Jonesboro, AR
Ben McNabb, Love Oak Pharmacy in Eastland, TX
Neil Patolia, AUM Pharmacy in Anaheim, CA
Todd Eury (Moderator), publisher, Pharmacy Podcast Network

Q: [Todd Eury] What is patient awareness? Has Amazon talked about adherence and is PillPack being more aggressive towards your patients? Or has it been pretty much the same as it’s always been with Amazon?

A: [Ben McNabb] I’m seeing quite a bit more advertising in our area. I think they’re still acclimating themselves to the pharmacy industry. So, I think we’re only kind of seeing the tip of the iceberg here and what Amazon’s able to do with how they’re going to market it and how they’re going to push it out. I would probably say that they haven’t pushed it extensively, so I think there’s still a window of opportunity to try to be first in your marketplace. Try to get to your providers quickly, maybe you start advertising in your local area through social media and other means of advertising, to try to be first in line when someone sees a PillPack ad on TV, or through Google ad networks, and other things.

Q. [Todd Eury] Have you had experience with strip packaging and adherence packaging before purchasing the RxSafe RapidPakRx? If so, discuss that experience and tell us about what you’ve done and how you’ve managed it.

A. [Bruce Kocian] We do have a competing company’s automation for strip packaging. Before the strip packaging, you name it, we’ve probably done it: Medicine on Time, Doc-u-Dose, OPUS, cassettes. The experience as far as the automation goes was not a good one at first. With the previous machine, we had varied time and a lot of time constraints on the pharmacists themselves. We put a hold on our adherence packaging system until the RapidPakRx came out. I will tell you that the look on my techicians’ face when we say we have a new customer that’s going to the packaging as opposed to what it was before is completely different. I would want everybody to really do your due diligence on the automation as well as the company that you’re going to be in business with when you step down this path.

Q. [Todd Eury] How are you introducing adherence to your patient base and what’s their reaction? Is this being followed up with counseling and/or spending more time with your patients?

A. [Ben McNabb] Our marketing plan is very significant. I know many owners that have bought a packager and it just gets put in a corner and it’s not used. The packager doesn’t do the work. You still have to sell the service. So that’s extremely important. We started out with a lot of video and social media advertising. We got picked up by local news stations. That really got us out there very well in my area. I had people that have trouble remembering, and they’ve been mistaking their medications for years. Now the patients just tell me it’s life-changing in many ways.

Q. [PDS Audience Member] To fill, let’s say 11 prescriptions for that patient, how long does that take?

A. [Amjad Abukwaik] With the RapidPakRx, it just takes about 10 minutes per patient. The verification for a pharmacist is a minute or less. You don’t have to open the box, I just look at the screen where I actually see every single pouch. Usually, there’s no error, but if there is any you can see it right there on the screen.

A. [Neil Patolia] For us, it’s faster than it was. Before, it was around an hour to half an hour because the checking alone takes so much time with the [competitor system]. With the [competing system], you can buy a camera system, but the camera system costs thousand dollars more instead of a technician just manually checking it. So now it’s half an hour to 20 minutes. Not even that now.

Q. [Todd Eury] How many technicians are required for your packaging program and do you run the packaging system every day?

A. [Bruce Kocian] Currently there is one technician that runs the packaging program. She has help from the other technicians. We use RxSafe so obviously, the fill technicians on the RxSafe are pulling the SKUs out of the safe that go into the RapidPakRx. But it’s a single technician. We have about 150 people in the RapidPakRx. She runs that probably Monday, Tuesday, Wednesday. By Thursday, Friday she’s working on the people for the next week, not actually running the packer. I see her easily being able to do 30-plus people a day by herself on the packer. It’s that efficient.

Q. [PDS Audience Member] With the non-adherents that we all have that just refuse to be adherent, have you had much luck putting those patients in the program and then just accepting it? Because those are the ones that, even if you’re in a sync program, they won’t pick up.

A. [Ben McNabb] That’s what I’ve found tremendous. Even with sync, some of these patients, they just will not take the medications appropriately or there are anecdotal issues with the physician telling them only take a half or whatever these issues are. When you’re reconciling the meds every single month, once a month, you’re forcing them to take it according to how the package is listed. If they miss a dose, they potentially put it to the side, and they continue trying to remain adherent on the dates and times. Over the long run, it trains them. It’s going to keep your scores moving forward the way it needs to go.

Q. [PDS Audience Member] I want to know what percentage of your patients are you having as a pharmacist to relook at because of potential errors when it checks it? How does the adherence system match if you need to fill 15 of one NDC and 15 of another? Does that confuse the system?

A. [Bruce Kocian] With the RapidPakRx, it’s minimal to none because of the technology. The RapidPakRx will not drop a pill to be packed if it does not recognize it. Before it ever drops the pill to be sealed, if it doesn’t recognize the medication, it alerts you on it. So it’s very, very minimal on the repacks.

Q. [PDS Audience Member] If the patient takes the 11 prescriptions per month, you probably can get compliance back. What is the net profit per patient?

A. [Ben McNabb] We use PDS RxAnalytics, but when we determined what we were getting, we were getting approximately $180 of gross margin before rebate per patient per month. You should consider it as a subscription-based model. I think that’s how Amazon considers this. This is a subscription that they’re paying their Amazon Prime fee for. They’re getting all of this included service. Don’t forget the tax benefits of bringing in this technology. Some of these tax breaks help pay off these technologies and really reduce how many patients you need to bring on to break even on the technology.

A. [Amjad Abukwaik] I’m sure all of you do marketing. Let’s say you let staff go out of their own pharmacy and out from behind the bench to go to doctors, adult daycare, and so on. If you bring in five to seven patients a month on this system, new patients, do the math. You give an average patient eight or 10 prescriptions, and hopefully, you’re making $10 per prescription. Let’s say 10 patients per month, new patients, brand-new patients, that’s 10, probably times 10- I mean, do the math. It’s almost like four or five thousand dollars extra income coming in. That would pay for your machine.

A. [Bruce Kocian] As compared to the competing company’s machine, when you do have 200-250 canisters, if you’re going to load that machine completely, you’re talking about a significant increase in your inventory. With the RapidPakRx, you have no increase in inventory other than your increase in patient volume.

Q. [Todd Eury] How are you marketing adherence technology to your customer base?

A. [Ben McNabb] I’ve been really impressed with the impact of social media. Especially, if you can get this social media presence out there as personalized as possible, you already have a well-built advantage. You can really get that message out there. Make sure you’re doing your research on effective social media advertising. Facebook typically doesn’t like the mass-produced or stock-image type of advertisement. It really wants it to come down to that local level. It wants it to come down to that relationship that exists between you and the customer, that’s a sincere relationship. So, if you can get that across, Facebook’s algorithms could really pick that up, see that it’s engaging content, and you can boost the heck out of it in your geographic area and really make a good go at it.

A. [Amjad Abukwaik] One of my stores packs all of their sync program patients on Monday and Wednesday. On the other days, they’re out seeing doctors and speaking about the sync program. They’re also talking about adherence packaging, and how that’s beneficial for their patients and their practice.

Q. [Todd Eury] Does offering adherence really grow your service area?

A. [Ben McNabb] Because of packaging, we’re able to service a much larger geographic area than what we have in the past. We went from a potential population reach of about 18,000 to 125,000 when you start looking at the map.

Q. [Todd Eury] How do you partner with other health providers?

A. [Amjad Abukwaik] Partner with your PBM. You have a lot of Medicare Part D plans, you know, reps, and they knock on your door. They ask about switching patients from plan A to plan B. Find a good one that is beneficial for you. They will be your best friend and will bring you tons of patients.

A. [Neil Patolia] We’re in a medical building, and next door, what they did was they had all the brokers come in. And whenever I talk to brokers, I’m like, “Okay, so you’re a broker, there are other brokers just like you. So, in order to differentiate yourself, why don’t you work with a pharmacy that has a packaging system?” It’s a win-win for you because you get the extra value that the other brokers can’t bring in.

A. [Bruce Kocian] Hospital readmissions is another venue. Go there if you have a hospital close to you locally. Their readmission rate greatly affects the reimbursement with Medicare now. We also have a nurse in the county that works for one of the insurance companies that refers patients to her. She’s not a home health nurse, she doesn’t work for the local home health agency, she works for one of the insurance companies. And she calls us on a regular basis with her high-med, difficult patients, to put them in our packaging system.

The above statements are simply excerpts from a larger discussion panel. To see the entire adherence breakfast session and hear even more from these independent pharmacy owners who are having success with their compliance and adherence programs, click here.

To learn more about the RapidPakRx and PakMyMeds, visit rxsafe.com/pds.

Using Adherence Packaging to Grow Your Independent Pharmacy Profits

Three Ways to Improve Your Cash Balance

June 13, 2019/in All, Pharmacy Finances, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by Koreen Leavitt

If we were to ask independent pharmacy owners what makes their pharmacy run, many might say their inventory, their customer service or their rock-solid team who keep the ship afloat. While all of those are true, the undercurrent at the heart of these statements is money. Make no bones about it, your cash balance dictates your ability to pay your team (and by extension, their families) and whether or not you shudder at the thought of paying your wholesaler bill.

A large part of understanding the science behind profitability is knowing how your money moves through your business. Once you understand how it works and what financial statements you need to review then you will know what to do to improve your cash balance. Money in the bank means that you have a safety net to see you through those industry forces that impact your pharmacy today, such as lower reimbursements, DIR fees and GER contracts.

As a pharmacy owner, you should be confident in your ability to:

Pay your wholesaler on time, every time.
Sleep at night knowing that your cash balance is on solid ground.
Keep the fear of making payroll a thing of the past.
Know how your money moves through your business.

If any of these statements hit home, read on for a few tips to get you on the track to financial freedom.

Better Outcomes, Better Profits

If you’re to increase your cash balance, you must understand that profitability follows great patient care. This is not something we tout as a feel-good story. We mean that if you look at your dispensing data to find where there are more effective therapeutic options for your patients which also offer higher reimbursements, this is a win-win for you and your patients.

Real-Life Application: One PDS member pharmacy consulted with their patients and prescribers to help their patients get the most effective drug available with their insurance. Without any changes to the total Rx volume, this pharmacy was able to increase their gross profit by $25,000 – all from one drug!

As you continue to analyze your data, you’ll start to

Discover more profitable opportunities
Increase your average margin dollars per prescription
Earn more profits without filling more prescriptions
Mitigate low-yield prescriptions
Build trust as a thoughtful, dedicated healthcare advocate

PDS offers our members access to our proprietary platform, RxAnalytics, a tool that can help you revolutionize how you see patient care and profitability. Fill out the form to learn how you can get a pharmacy performance analysis to know whether RxAnalytics is the right place for you to start.

Synchronize Your Way to Money in the Bank

The foundation for a profitable, high-performing pharmacy is a solid medication synchronization program. Many pharmacies don’t implement this program correctly; therefore, don’t see the benefits of improved workflow, reduced expenses, scheduled staffing, improved adherence, and opportunities for healthy patient interventions.

There’s no magic involved. You don’t have to be a “special kind of owner” to achieve results that impact your profitability so you can rest easy knowing your cash balance is on solid ground. Besides the patient, workflow, prescriber, performance, and marketing impact you gain from implementing a successful synchronization program, the direct financial impact is undeniable.

Your synchronization program should be able to:

Deliver more prescriptions per patient
Lower expenses per prescription
Improve inventory management
Allow for more effective staffing

You’ll see all of these benefits in your financial statements, and the numbers don’t lie. PDS offers a comprehensive training to equip owners with the tools and knowledge they need to properly implement this program and synchronize their way to better financials.

Get the clarity you need to be sure that medication synchronization, and the PDS exclusive member program SyncRx, is the right place for you to start. Fill out the form to learn how to get started with a pharmacy performance analysis.

Understanding Your Money

In order to move from the unknown to the known, you have to understand the health of your finances. Stop worrying over how much money you have in the bank and start by creating a plan of attack. PDS is offering a pharmacy performance analysis from an experienced independent pharmacy owner. In this analysis, we’ll show you:

A snapshot of your pharmacy’s performance in four key areas
The eight KPIs you should measure
The tools you need to move the needle

Take the next step to secure your financial freedom and leave the stress of making ends meet in the past.

Learn About the Pharmacy Performance Analysis

Ready to Experience Your Best Year Yet?

For over 21 years, PDS has helped Independent Pharmacy Owners thrive. We're a team of experts dedicated to your success and who focus on your entire pharmacy. Click below to discover your pharmacy's biggest growth opportunities.

Avoid Transactional Anxiety: How to Alleviate Stress Related to Purchasing for your Independent Pharmacy

June 6, 2019/in Pharmacy Profits and ROI /by Ali Maiorana

Here at PDS, we take pride in highlighting some of our incredible exhibitors. We know these companies have the potential to revolutionize pharmacies just like yours through their products and services. We’re excited to introduce Associated Pharmacies, Inc. (API), the warehouse subsidiary of American Associated Pharmacies (AAP). Read on for their sponsored blog post about avoiding transactional anxiety related to purchasing.

You fill a prescription and your pharmacy dispensing system shows that you lost money on the transaction. Then a second and third prescription still yield little or no profit. Your current solution: find an alternative source to purchase items at a price below the reimbursements. But there are many more transactions throughout the day and the time spent sourcing alternative suppliers multiplies.

We call this transactional anxiety related to purchasing. You ask, “what is that?” and “how did I get it?”

It begins with a lack of understanding of how to purchase pharmaceutical inventory – Brand and Generic Rx. As a pharmacy owner, making the right purchasing choices helps ensure the profitability of your business. This can be difficult in today’s market.

Newton’s third law states that for every action, there is an equal and opposite reaction. For independent pharmacy owners, action equals Brand Rx and Generic Rx equals reaction. For years pharmacy owners have pressured suppliers for lower acquisition costs on Brand Rx to match reductions in reimbursements received from payors, sometimes pushing them as low as cost minus 5%, 6% or 7%! Should it be expected that suppliers sell Brand Rx below acquisition cost?

Percentages vs. Dollars

To keep up with declining pharmacy reimbursements wholesalers must dollar cost shift Generic Rx profits, in the form of higher prices or lower rebates, to Brand Rx discounts. To ensure these dollars are available, pharmacies are required to purchase a minimum dollar amount or ratio of Generic Rx in addition to Brand Rx needs. This chase for a lower Brand Rx cost of goods percentage, in turn, reduces dollar profits on Generic Rx prescriptions. For an average pharmacy, 90% of prescriptions filled are for Generic Rx and 10% are Brand Rx.

Because of this brand/generic dollar cost shifting, there is no individual prescription transaction clarity. Dollars that would be considered Generic Rx profits are used to improve Brand Rx profits. Brand and generic transactions do not stand in separate silos, which means individual prescription profitability can no longer be truly measured. The probability must be evaluated based on the total combined net cost of inventory, not a single transaction; and not assessed by a rebate amount or Brand Rx discount percentage.

Are you experiencing low or negative profitability on your Generic Rx prescriptions? Do you find yourself or your staff spending valuable time searching for suppliers for less expensive inventory? If so, your Brand Rx cost of goods percentage is likely eating up Generic profits.

You need to consider the impact “shopping around” has on generic purchase compliance requirements, and how that, in turn, affects Brand Rx pricing. Balance is required, and profitability is built on an understanding of the “big picture” of the cost of inventory.

The Bottom Line Is What Matters

No matter how profitable each individual prescription filled may appear, or each individual purchase made, low margins and poor cash flow can be deadly for your pharmacy business. Don’t allow yourself to stay transfixed on small gains on each transaction and miss out on opportunities to maximize the overall bottom line.

Not sure how to be confident in this approach? The good news is you don’t have to sort through it alone. Don’t be afraid to ask questions of your supplier or buying group representative. A representative can explain the intricacies in understanding terms, and how supplier offerings will affect your bottom line. If they are not willing or able to disclose details of a prepared analysis or the contents of a calculation methodology, you should see red flags.

You have options, and independent pharmacies’ preferred Generic Rx partner is now better than ever. API’s warehouse program is designed to improve cash flow, starting with a 20% instant generic rebate deducted from invoice. Keep more money in your pocket from the beginning and enjoy monthly accrued Generic Rx rebates on these same purchases!

Visit RxAAP.com today for more information, and a representative will help you map out the best purchasing plan unique to your pharmacy.

About the Author

Associated Pharmacies, Inc. (API), the warehouse subsidiary of American Associated Pharmacies (AAP), is designed to lower operating costs and increase profit margins. Make API your pharmacy’s NEXT improvement.

3 Ways to ‘Cash-Flow’ Adherence Automation

April 2, 2019/in Pharmacy Growth Strategies, Pharmacy Profits and ROI /by Ali Maiorana

Lately, we’ve been talking with pharmacy owners from across the country who are not just surviving but thriving and expanding their businesses in today’s environment. They’re growing their patient base, boosting revenues and increasing profits, using one key strategy: adherence packaging services.

Here are three of their stories.

Starting from scratch

PDS member and Texas pharmacy owner Ben McNabb went from zero adherence patients in 2016 to more than 400 patients by the end of 2017. During that time, his pharmacy’s CMS “Star rating” went from three to five stars.

Ben was able to expand his pharmacy’s geographic reach from a 10-mile circle to a 50-mile circle, and increase his overall pharmacy revenue by 24 percent in the first 12 months.

How did he do it? He focused on new patient acquisition, and forged relationships with local home health agencies and physicians.

He advertised on Google and Facebook. He even ran local TV ads after Cowboys football games. It worked. For his achievements, McNabb was awarded the NPCA “Adherence Practitioner of the Year” award in 2018 by leveraging strip packaging automation.

For McNabb, it was simple math. His adherence packaging patients average 11 scripts per month. With an average margin of nearly $14 per script, he was able to bring in more than $150 per patient per month in profits, or about $1,300 per patient per year.

But what if margins at your pharmacy are smaller, or your patients don’t average 11 scripts per month? The math still works.

For example, let’s assume your average margin is only $10 per script. To keep the math simple, let’s say your adherence patients only average 10 scripts per month. That’s still $100 in profit, per patient, per month.

That means, with 10 new adherence patients, your drugstore would earn $1,000 per month in new profits. If you could add just 10 new patients per month, in three months, your new cash flow would more than cover the monthly lease on strip packaging automation. (30 patients x $10 average margin x 10 scripts per month = $3,000 per month). Put simply, with just 30 new adherence patients, you’re already cash-flow positive.

In the scenario above, by adding 100 adherence patients, you could achieve $10,000 per month in new profits, or $120,000 per year. With 200 patients, you’d reach $240,000 in new profits every year. With 400 patients, your new profits could climb to $480,000 annually.

“Adherence packaging has helped our business to be more profitable because we are maximizing reimbursements from Medicare plans, maximizing the number of prescriptions filled per patient per month, and capturing many new patients that have complex drug regimens,” says McNabb, pharmacist and owner of Love Oak Pharmacy in Eastland, Texas.

If you’re like McNabb was in 2016, and haven’t started an adherence program yet, don’t sweat it. Simply estimate the number of new patients you are likely to enroll in your pharmacy’s adherence program, multiply by your estimated number of scripts per patient, and average profit per script, and you can calculate how quickly you’ll get a return on investment with adherence packaging automation. For example, using NCPA averages for prescription margins, if you could add 15 new adherence patients per month, you could be cash ﬂow positive by your third month.

Moving from blister cards to strip packaging

When PDS member Kyle Lomax, pharmacist & owner at Southern Pharmacy, wanted to grow his adherence program, he realized that manually filling blister cards was a huge limitation.

“We were using a manual card-based system that was labor intensive,” Lomax explains. “We had reached capacity and needed automation to help us package adherence-based patients.”

Lomax purchased an adherence packaging system. Since then, he has improved productivity and also increased his pharmacy’s Star ratings.

“Using the automation versus card filling has cut down on our production time at least 50 percent,” Lomax says. “The visual inspection software included with the strip packaging system gives us the ability to verify packages very easily. The non-specific cartridges make it easy for us to change NDCs on the fly, and the small size in our retail environment has been a great fit for us.”

Based on NCPA averages, processing eight patients per day on a typical multi-dose blister card could cost your pharmacy $3,100+ per month. Using strip packaging automation, you could save $2,192 per month. Migrating from blister cards to a strip packaging system could triple your year-one adherence business, at no additional cost for labor and consumables, and you could achieve positive cash-flow in as little as two months.

Migrating from cassette-based to universal cartridges

Trey Crawford, a PDS member pharmacist who owns Diket’s Professional Drugs, started his adherence program in 2017, using a cassette-based strip packaging system.

“We were looking at our synchronization program and noticing that people were not getting their medications on time. When we looked at our Star ratings, we were seeing we were not where we wanted to be, and we saw adherence packaging as a way to get our adherence numbers where they should be.” Crawford says.

“Another reason that we decided to get a strip packager is because of PillPack. PillPack was bought by Amazon and we all know that Amazon is a real big player in the United States, and if you really want to compete with that giant, you have to be able to offer that for your patients so that you don't lose them,” Crawford explains.

Since purchasing the universal cartridge-based strip packaging system, Diket’s Drugs has been able to increase its trade area to a 50-mile circle, and has grown its adherence program to around 380 patients. With the new system, Crawford says he can run more than 50 completed jobs for adherence patients in one day, with 99.9 percent accuracy.

“The speed of the universal-based cartridge system is unbelievable,” says Crawford.

“There are no more trays that you have to load. No more cassettes. No more sending things off to get to another cassette because the NDC is incorrect. You have cartridges that you just pour the meds in and it makes life so much easier than what it used to be.”

If, like Crawford, you started with a cassette-based strip packager, please note: using universal cartridges means that you no longer have to store inventory in the adherence packager. Here’s how cash-flow could work for a pharmacy with 200 adherence patients, migrating from cassette-based automation. First, you could save as much as $80,000 to 100,000 by liquidating unnecessary inventory. Coupled with the improved speed of pharmacist veriﬁcation, higher capacity and lower cost of consumables, and taking advantage of Section 179 savings, you could achieve positive cash-flow your first month.

At the 2019 PDS Super-Conference, RxSafe announced the launch of RapidPakRx™ and the PakMyMeds Network. RapidPakRx is the first-ever system for adherence strip packaging designed specifically for retail pharmacies to fill a 30-day supply of multi-dose medications at the lowest possible cost. PakMyMeds Network is a new, no-hassle solution to connect independent pharmacy owners with local patients who want an easier way to take their medications.

Using sophisticated online and mobile ad networks, social media, and GeoMarketing, PakMyMeds Network will advertise -- in up to a 50-mile circle around participating pharmacies -- to patients who could benefit from improved medication adherence and/or are searching for adherence packaging services. Patients who opt-in will then be connected with a partner pharmacy in the PakMyMeds Network. PakMyMeds network is available—at no charge for the first 90 days--to any pharmacy that purchases a RapidPakRx.

To learn more about the RapidPakRx and PakMyMeds, visit rxsafe.com/pds.

{PDS Sponsored Post} Why Your Independent Pharmacy Needs An Adherence Program

August 15, 2018/in Pharmacy Growth Strategies, Pharmacy Profits and ROI /by Ali Maiorana

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 Parata, read on for their sponsored blog post about how a true adherence program can benefit your pharmacy business.

Did you know medication nonadherence can cost the healthcare system as much as $300 billion dollars per year? This common problem affects all aspects of the healthcare community from the providers to the patients. The healthcare providers take a hit with penalties, pharmaceutical companies have increasing amounts of waste, and consumers incur unnecessary medical bills.

This is where independent pharmacies come in! Businesses and owners are in just the right spot to improve medication adherence. With Amazon’s recent acquisition of PillPack, the benefits to patients are obvious — they are healthier, and their medical costs are potentially decreased. But how can a true medication adherence program benefit independent pharmacy?

Gain Customer Loyalty

An adherence program, like pouch packaging, helps to guarantee patients come to you for their refills. It becomes easy for the patient. A true adherence program builds trust — that means a patient does not have to worry if their medication is sorted or taken correctly. Eliminating common questions like, “Was I supposed to take that pill in both the morning and night?”, can be priceless for the patient. And by reducing the number of visits to the pharmacy per month from 5 to 1, you’ve helped them capture back more of their time. When a pharmacy can do that for a patient, the seeds of loyalty are planted.

Experience less stress with better workflow

Since refills are scheduled, your pharmacy’s workflow becomes much more predictable. A predictable workflow translates into less stress. With his adherence program, pharmacist, PDS member, and pharmacy owner, Peter Wolfe, says the face of his pharmacy’s day-to-day has completely changed. “We stay about a week ahead, and we always know what’s up next. It eliminates stress, saves on inventory, and frees up time.”

Cut down hospital admissions

Who can resist a greater good benefit like this? Fewer admissions due to nonadherence is better for the whole medical community as well as patients. When patients are adherent to their recommended medications, hospitals lower their risk of penalties in the form of reduced Medicare payments. As an added bonus for independent pharmacies, capturing patients with chronic conditions from referrals to hospitals is easier when you offer compliance packaging that works.

Add OTC to your program

Packaging over the counter medications and supplements with prescriptions helps the patient take them as recommended, while also adding revenue for the pharmacy. Patients can mitigate vitamin depletion that some medications cause. Adding these items to pouches is an easy part of the packing workflow. Add simplified cross-selling that makes providing a complete solution to your patient easier.

Earn the patient’s entire business

When patients are on a true adherence program, any prescriptions they may have gone to another pharmacy for are transferred to you. In addition to gaining those prescriptions, you also have a better picture of their medication regimen. This presents new opportunities to make appropriate interventions based on the whole picture.

Independent pharmacies can follow these five steps for a successful adherence program. We encourage you to work with the entire healthcare community to help pharmacies battle medication nonadherence on the front lines. Now is the time to think about how your pharmacy business and your patients can benefit from a fully functioning adherence program.

About the Author:

Parata Systems provides pharmacy technology solutions that empower pharmacists to help people lead healthier lives. Founded in 2001, Parata offers the most extensive pharmacy automation portfolio in the industry – designing, building, and supporting both vial-filling and pouch packaging solutions.

We’ve Compiled the Best Flu Shot Marketing Strategies for Pharmacies… and They WORK

October 17, 2017/1 Comment/in All, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by pdsmarketing

Flu Shot Marketing

Flu season is upon us, and as they say, an ounce of prevention is worth a pound of cure. How will you be conveying that message to your patients this flu season?

Here are 22 marketing tactics to position your independent pharmacy as the go-to for their healthcare needs this flus season. The ideas below are all highly effective with little to no-cost investment. Whether you choose to implement one or all of the ideas, they’ll make your job a lot easier and your pharmacy marketing tools much more effective by keeping your brand top of mind.

1. Flu shot gift cards. This is a simple flu shot solution for younger patients with elderly parents, friends or neighbors. Have the gift cards available at your cash register and strategically place some signage throughout the store. Your all-star pharmacy team should also be trained to mention this offer while the patient is receiving their shot. Before you know it, your independent pharmacy can be the go-to healthcare destination in the community.

2. On-site flu shots to local businesses. The flu takes a real toll on workplace productivity. Reach out to local business leaders and organizations offering them the solution they didn’t know they needed. Send a letter or make a personal phone call offering to administer on-site vaccinations. Take the stress off their plate allowing them to focus on running their business while you build yours.

3. Send out a voice broadcast to your past flu shot customers. If they received a vaccination in the past, they’re likely to continue. Consider sending a voice broadcast to elderly and diabetic patients. Remember these best practices while you’re planning the campaign:

Create a short script that runs no longer than 30 seconds.
Avoid scheduling the call too early in the morning, too late at night or during typical dinner times.
Think about what type of voice would be pleasing to the ear.
Don’t forget to give the customer the ability to opt-out from receiving future calls.

4. Record helpful and educational videos. Engage and education existing and potential customers. Videos can be posted to your website, shared on social media, played in the store or linked in an email campaign. Here are a few video suggestions to get you started:

Demonstrate how flu shots are pain-free and easy to administer by using a live patient (make sure you get their consent first!).
Create a fun, candid video
Tap into the knowledge of a staff pharmacist or the pharmacy owner and ask them to record an educational video. Sample topics: The Top 5 Ways to Stay Healthy This Flu Season (tie-in products they can buy in the store) or How to Wash Your Hands Effectively
PRO TIP: Ask a child to join you in the video – their mom will surely show it to 20 people.

5. Record a new on-hold message. Sometimes putting patients on hold is unavoidable. Make the most of this (hopefully) brief hold and remind them about the importance of getting a flu vaccination. Keep the message short and to the point and when your done conducting the business that they called about, ask them if they’d like to schedule their flu shot appointment

6. Place a sign by the road that reads, Flu Shots Here. Simple, cost-effective, and most importantly, it works.

7. Pass out “I got my flu shot, did you?” stickers to each flu shot customer. This patient will be a one-day walking advertisement and testimonial for your pharmacy.

PRO TIP: Take pictures of customers wearing their stickers and post a collage of these on your social sites. Make sure to ask for their consent first! These customers will share the image on it. Influencer marketing at its best!

8. Have FAQ and Fact Sheets, both in English and Spanish (or any other language prevalent in your location), available in the pharmacy waiting area.

9. Hang flyers around your pharmacy and on community bulletin boards.

10. Send customized letters to families with children, diabetic patients, your elderly customers, pregnant women, etc.

11. Educate your staff on the benefits of getting a flu shot and train them so they can effectively “sell” to your patients.

12. Send a text message reminder to your customers that have opted-in to receive messages from your pharmacy.

The flu claims an avg of 36,000 lives and hospitalizes more than 200,000 people every year. Schedule a flu shot by calling xxx-xxxx.
Flu season is just around the corner, protect yourself by getting a flu shot at ____________.
Stay healthy this winter, get a flu shot. Call ___________ to set up an appointment.

13. Offer a $10 coupon to the store with every flu shot. Restrict the coupons to OTC items only and only on a $20 sale or more.

14. Set up a synchronization alert to automatically remind this year’s flu shot patients when it’s time to come back next year. This strategy works well for any appointment or event in your pharmacy — diabetic shoe reminders, cholesterol testing days, etc. Do you have a medsync program in place? If not, you’re missing out! Here’s a great place to start.

15. Offer free Vitamin C to the community. Position your efforts as a way to keep the community healthy during the season. Not only will it put your pharmacy in a good light, it will also get people to spread the news about your efforts and get people to walk into your store.

16. Add a widget to your blog or website. Go to the CDC website and download one of the many data and statistics widgets they offer for health-related websites and blogs.

17. Inform your Facebook and Twitter communities by uploading your ads, videos, reminders, and exclusive promotions.

18. Set up an after-hours flu shot clinic for professionals that are stuck in the office during your pharmacy’s hours.

19. Write blog posts about the flu season and how to stay healthy. Suggestions: The Truth About Flu Shots, How to Stay Healthy During Flu Season, and What to Do if You Catch the Flu.

20. Staple bag stuffers to each bag leaving the pharmacy with flu flyers.

21. Update your monthly pharmacy newsletter with an ad, educational article, or information hotline number geared about the flu season.

22. Update your pharmacy voice mail message. Include a quick recap of benefits and how they can make an appointment.

Not sure where to start? Voice broadcast scripts, bag stuffers, flyers, FAQ sheets in English and Spanish, etc. can be found in the PDS Advantage Library by searching the keyword “flu.” These documents were designed as basic templates; feel free to edit the information to fit the needs of your pharmacy. Don’t have a PDS Advantage account? If you are a valid pharmacy professional, you can set one up for free here! Begin testing out a few of these ideas this week, and let us know what else you would recommend, or what has worked for your pharmacy in the comments below.

{PDS Sponsored Post} Growing Your Pharmacy Revenue with Niche Products

September 2, 2017/0 Comments/in All, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by pdsmarketing

Growing Your Pharmacy Revenue with Niche Products

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 Langermania; read on for their sponsored blog post on valuable tips to stock your shelves with the right products that will augment your bottom line.

Independent pharmacy owners have multiple items on their to-do lists, with the most important being properly dispensing medications to ensure their patients recieve the right dose to get well. Running your operations and implementing new programs, all while keeping up with employee morale, can often get pushed to the side. These details may seem minor, but they often what take a back seat and in doing so, negatively impact your business.

Don’t Just Survive. Thrive.

Pharmacies have many opportunities to add additional revenue utilizing their existing prescription customers. You just have to take a deeper look into what you’re already doing. Below are our top 3 ideas to increase revenue without expending too much effort.

Idea 1: Take a visible end cap on a heavy traffic pattern isle and fill it with seasonal items that are already on your shelves.
Idea 2: Place a tester for a hand or pain relief cream on your wrapping counter. It’s all about the laws of percentage!
Idea 3: Recognize which shelving in the store has the most visibility to your customers while they are waiting for their prescriptions to be filled. Find the sections that could be communicating “buy me” while a patient is standing or sittiing down waiting. Make sure to have the right mix of impulse, trendy, cute and useful items.

Cost-Saving Tips to Keep in Mind

While snacks and candy seem like quick and easy sales, the reality is that their profit margin is too low and take up too much valuable real estate.
Some specialty candies down low will do the trick especially as “distraction” candy for kids.
Make sure to stock items that are fun versions of old standbys, such as:
- Neon or animal print nail clippers
- Cell phones paraphernalia (Only EVERY customer over 8 has got one!)
- Pain relief products, or sleep aids
- Unique pill holders (this one is a fast seller!)

There is no playbook or blueprint that guarantees what you should be offering in these highly visible and high-traffic locations – all it takes is trial and error. Your traditional wholesaler carries general drugstore merchandise that you can find in every chain drug, grocery and dollar store. Become the destination for products other than the predictable OTC drug necessities!

Finding the Best Resource for Specialty Items

We live in a society that is constantly consuming. Whether your customer needs a modest gift to give or wants the latest gadget or gizmo, keep something on shelves they’ll be willing to buy. With desire, modest effort and a reliable resource, you can start to fill your registers with much needed augmentation for the low reimbursements you’re receiving on prescriptions.

About the Author:

Langermania is the leader in providing specialty products for independent pharmacies to grow their revenue. Many of our products are not found in the chain stores, eliminating the worry of competition and keeping up with the latest products. We work diligently to source the latest trends to be able to offer over 7,000 stores unique items. Visit our website to see more of what we offer and how we can help grow your independent pharmacy.

How Your Pharmacy Business Can Turn a $10 Script into $100 Profit in 2 Minutes

How to Improve Rx Profit Margins: Turn a $10 Script into $100 Profit

August 19, 2017/0 Comments/in All, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by pdsmarketing

Pharmacy Profit Margins If you ask a room full of independent pharmacy owners if they would prefer to increase the volume of $10 prescriptions or the dollar value of existing scripts, chances are they’d all choose the latter. However, many believe it’s easier to find more customers; and focus on tactics to attract new business instead of optimizing current prescription profit margins.

Yes, increasing the number of patients walking into your pharmacy can make your business, well, busier. Take a moment to ask yourself if you are looking to be busier or more profitable? One of the easiest ways to improve your bottom line is to focus on increasing the profit margins per prescription with your existing patients.

Increase Profit Margins by Investing 1 Hour a Day

PDS Members are spending at least one hour per day analyzing their dispensing and utilizing the PDS Profit Chart to identify new opportunities to grow their profit margins. For example, a doctor-approved switch from one low-profit drug to another in the same drug class, but with a higher margin, can increase your profits every month that patient is on the prescription. A $10 prescription can quickly generate a $100 profit (when filled monthly) almost instantaneously.

For example, Mike, owner of a Utah-based pharmacy and a PDS Member since 2013, credits the Profit Chart as key to having the best few months in the history of his business. Mike and his team tripled their profit margin per prescription in his most recent month of reporting. The difference amounts to a $40,000 boost to his bottom line!

Dispensing Data Analysis & The PDS Profit Chart

One of the most effective ways to increase $10 scripts to $100 profits is by utilizing the Profit Chart to identify key switch opportunities, implement successfully, and then replicating that success across as many prescriptions as possible. To do that, pharmacy business owners should leverage their dispensing data.

What Pharmacy Data Should Owners Review?

Patient Prescriptions
High Margin Prescriptions
Lowest Margin Prescriptions
High Reimbursement Insurance Plans
Low Reimbursement Insurance Plans

Once you identify an excellent opportunity, begin looking for other candidates that have been prescribed the first medication to see if they would benefit from suggesting the switch as well.

PDS Member Vic, owner of North Carolina-based pharmacy, did just that by implementing the Pain Protocol. After seeing how well the pain medication switch for several patients fared, $90,000 in one month to be exact, Vic realized that he could increase profit margins and improve the comfort for a huge percentage of his pain patients. Running a profitable independent pharmacy and providing world-class healthcare outcomes are not mutually exclusive.

The Profit Chart Paradigm Shift: Pharmacy Businesses Are Allowed to Make Money!

The “profit-driven” mindset and practice of utilizing data to grow your business can be a bit of a paradigm shift for many independent pharmacy owners.

PDS Members John and Sue, owners of a Kansas-based pharmacy, recall that at first, they felt like they were “gaming the system.” They shared that it felt wrong to be seeking the greatest profit from their patients when they had chosen the pharmacy industry with patient-care and not profits in mind.

Amy, an Oklahoma-based PDS Member, felt very similar but shared that ultimately the PDS Founder, Dan Benamoz, put it best when he explained that leveraging RxAnalytics is one of the best ways to move the needle and keep her in business.

These are stores where communities and patients have built heartfelt relationships. Utilizing the Profit Chart and data analysis doesn’t hurt the patient. In fact, in many cases, the switch either doesn’t impact the patient or improves their standard of care through a higher-quality drug.

Turning Ideas into Action!

If you’re ready to stop focusing on things out of your control – like low-paying insurance providers – download our newest eBook – The Pharmacy Business Blueprint for Massive ROI – now! Or, to see how PDS can help you turn $10 prescriptions into a $100 profit, chat with one of our Account Executives; let us know how we can help you.