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Pharmacy Profits and ROI

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

Thriving in the NEW Business of Nutrition

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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 Wellness Works. Read on for their sponsored blog post about the business of nutritional sales and selling vitamins.

For decades, independent pharmacists have held an advantage when it comes to selling vitamins and nutritional supplements. First, as part of their undergraduate studies, pharmacists are the best educated healthcare professional to address the basic biochemical concepts of vitamins and supplements. Second, pharmacists have held a position of trust with consumers for decades. While 65% of Americans do search online for basic health information, the knowledge of and trust in the pharmacist is used to validate the health information found online. Lastly, as healthcare professionals, pharmacists are in daily contact with consumers exhibiting various metabolic diseases. These are diseases that have been acquired over time for which pharmaceutical offerings may not be the only options.

Vitamins are More Than a Line of Bottles on a Pharmacy Shelf

Today, vitamin sales account for $100 billion in revenue worldwide, and the U.S. accounts for 36% of that figure. What trends have driven that number?

  • First, there is an increased interest in better health through all demographics. Naturally, Baby Boomers would be expected to hold the greatest percentage of supplement sales, and they do at 36%. What may be surprising is that Generation X comprises 23% and Millennials 16%. All of this combines for a figure of 70-75% of Americans taking at least one supplement every day.
  • There is the increase in preventative healthcare. Celebrity health experts are widespread on social media, online and through multiple communication channels. And supplements have been recognized as being essential to the preventative health process.
  • Self-directed consumers no longer rely on physicians to advise them on their healthcare. Today, consumers search online for answers to their healthcare questions. This consumer self-direction is what is attributed for the increase in supplement sales across all demographics – Baby Boomers, Generation X and Millennials.
  • Finally, brand recognition and brand support are becoming major influencers as consumers search for providers they can trust for their supplement inquiries and sales.

What do Pharmacists Need to do to be Successful in this NEW Business of Nutritional Sales?

  1. Offer a private label as an alternative to the national labels found everywhere. The exclusivity of a proprietary product line, based on quality and product knowledge, provides a valuable differentiator in this competitive area. Coupled with the trust consumers hold for pharmacists, a private label line generates return sales for pharmacist-recommended products.
  2. Ensure that you can be found online. Today, being found online is evidence that you exist. Pharmacists should be prepared to offer their private lines not only in their pharmacies, but through online e-commerce as well. In 2017, sales of nutritional supplements in brick and mortar locations increased 3%. However, sales of nutritional supplements in brick and mortar locations that also offered online sales of the same supplements increased by 20%. The trusted pharmacist who can offer professional quality supplements both in their pharmacy and online can parlay that situation into a position that even Amazon cannot overcome.
  3. Pharmacists need to utilize multi-channel marketing opportunities and support. By using a professional marketing program that provides consistent brand presence through social media, emails, website videos and other communication channels, the pharmacist creates an image of expertise and trust which carries through multiple demographics.

You don’t sell vitamins by just selling vitamins! By combining the pharmacist’s innate advantages with the strategic application of available technology and marketing, pharmacies can realize healthy nutritional revenue streams. Even in this competitive marketplace.

About the Author

Wellness Works helps independent pharmacists develop a profitable supplement revenue stream by creating a branded supplement line for sale in the pharmacy and even online. Wellness Works provides the professional products, marketing expertise, and business and clinical consulting to help pharmacists be successful with supplements.
Open Enrollment

Open Enrollment: Help Your Patients and Protect Your Profits

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Every year, Medicare’s Open Enrollment period is October 15 – December 7. The process of enrolling or updating plans can be frustrating for aging patients, resulting in many staying with a plan, even if it isn’t the best option for their healthcare needs. Helping patients navigate this process is an excellent opportunity for independent pharmacies to act as a healthcare resource for their community. Providing high-touch, personalized service improves retention and increases the probability of the patient enrolling in a mutually beneficial plan, one that saves them money and doesn’t hurt your pharmacy’s bottom line.  

Differentiate by Delivering Exceptional Care 

Open Enrollment

The truth in our industry is that business growth can only come from great patient care. Launching a program around Open Enrollment doesn’t have to be intimidating. Start by identifying two important groups of patients in your dispensing data, those who are eligible for the first time to enroll in Medicare and patients who may benefit from an Open Enrollment consultation to select a plan.  

Once you’ve identified who would benefit from your expertise, start getting the word out, in your store and in your community.  

  • Marketing Your Services: Create in-store signs, bag stuffers, and encourage your team to highlight that your pharmacy is offering plan reviews.  
  • Encourage Referrals: Give cards with contact information to younger patients to share with their parents or older family members.  
  • Community Outreach: In-person events may not be in the cards for 2021 Open Enrollment, but you can still connect through Zoom or other video chat portals. Reach out to local prescribers and long-term care facilities to support their patient’s needs.  

What Pharmacy Owners Need to Know About Open Enrollment  


Prioritize Your Efforts in Open Enrollment


Priority #1 – Using your dispensing software or Amplicare Match identify the patients that meet two specific criteria.  

  • Those currently enrolled in a plan that will NOT be the most affordable for them next year. 

           AND  

  •  The most affordable plan next year is also the plan that will provide the highest contribution to pharmacy revenue.  

If the plan doesn’t decrease the out-of-pocket cost for the patient, we don’t recommend making the switch. The focus for any Open Enrollment period should be around improving outcomes and decreasing co-pays and premiums for your patients.  


Priority #2 – Find the patients that simply are not enrolled in the most affordable option.  

Conducting plan comparisons builds the relationship with patients and your pharmacy. If you can help your patients understand their options, save them money, and help them switch to a plan that suits their health care need, they are more likely to continue filling prescriptions with your pharmacy.  

PRO-TIP: Create a PDF that highlights how much you patient stands to save on their prescriptions per month. Always try to quantify the value you provide when possible.  


Priority #3 – Identify Low Income Subsidy (LIS) Network Patients.  

An often-overlooked segment of patients is those currently enrolled in or eligible for the Low Income Subsidy Network (LIS). There are four groups of people who may benefit from a consultation or assistance submitting the application for the LIS coverage.  

The premium and co-pays for are often the same or comparable across these benchmark plans; allowing you to help them choose a plan that offers better reimbursements and lower DIR fees for your region. Additionally, helping patients who qualify, but aren’t currently enrolled can help in driving referral traffic. You and your team can connect with low-income clinics highlighting this service for vulnerable patients.  

Identify Which Plans… 

  • Have restrictions in place 
  • Pharmacists and patients should know which plans cover ALL their drugs, require prior authorization, or step therapy for certain drugs. 
  • Have formulary changes 
  • Ensure you know the cost of a patient’s plan based on upcoming changes. This can help you find medication alternatives for patients that may not want to switch plans but their medication coverage has changed.  

Start Connecting with Patients Early and Often 

Some Medicare plans begin communicating with patients about their options before they turn 65, to shift their business to a chain or mail-order pharmacy. Reaching out to eligible patients before they are steered away from your pharmacy is critical.  

Additionally, many Medicare members are eligible for an annual MTM review with a pharmacist. Reaching out for an MTM prior to open enrollment helps keep the patient and pharmacist informed, as well as identify opportunities to highlight ways to save your patient money during the open enrollment period.  

Want More Information?

PDS teamed up with Amplicare to help pharmacy owners discover Open Enrollment Tactics that they can implement NOW to protect (and increase) their profits in the coming year. Watch this webinar to learn how to compare plans for patients, identify and act on win-win opportunities for patients and the pharmacy, mitigate DIR fees, and hear about the Amplicare features available to help you this fall.

Creating A (Successful) Virtual Event For Your Pharmacy

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2020 will be remembered for a lot of things. Staying apart, coming together, learning a new normal. Pharmacies have found innovative ways of keeping their businesses moving and operating efficiently – including an abundance of virtual communication. We are going to take it a step beyond virtual meetings and talk about virtual events in your pharmacy. This could be a product or service launch, a grand opening, a community event, etc. Big or small, there is a real advantage to hosting a pharmacy event virtually. 

Why Should You Host a Virtual Event?

The advantages of a virtual event don’t just apply during times when it has to be done, when we are all socially distanced. You can reap the benefits of a virtual event even when you can host an in-person event because it expands your reach.

Key Benefits of a Virtual Event

  • Engage with an entirely separate audience (along with your community AT the event).
  • Your content can be used to promote your pharmacy long after the event.
  • Save time and money; virtual events will cost you less of both.

How to Get Started

The first step to hosting a virtual event (or any event!) is to decide when you want the event to take place. Even though its virtual, it will be live, so you need to decide on a date and time that will work for your audience. 

Next, you need to decide on a platform. The easiest option for a virtual event is Facebook Live. This allows you to share the experience in real-time with your audience. It won’t be perfect (it’s live, so you can’t edit), but it will be authentic, and that’s what matters. Live streams are available to viewers with or without a Facebook account. Viewers without a Facebook account just need the live stream URL. Facebook has an easy outline that talks about the technicalities of how to set this up. We are going to focus on how to promote your event and some tips and tricks to help it go smoothly!

Promoting Your Virtual Event

Just as with a regular, in-person event – you have to let people know about it or they won’t show up. At least with this, you don’t have to worry about ordering the right amount of food! So, what are the best ways to generate interest for your virtual event?

  • Schedule the Live Video – Let your fans know when you’re going live! Facebook sends a notification to your followers when your stream begins.
  • Create a Facebook event – Publicize the event details and invite your network.
  • Promote on Facebook – Create a buzz with organic posts and paid advertisements. Think beyond just posts – include photos and videos for interest.
  • Promote via other social channels – You don’t have to limit yourself to Facebook, post on Twitter, Instagram, LinkedIn, etc. and include the link to the Facebook event.
  • Send direct mail / invites – They don’t have to be fancy (or expensive). A simple, handwritten note (copied and printed) will do just fine! Send to your patients, your community, and your broader network.
  • Promote via community channels – Think about the boards you sit on; the community organizations are you involved in. Can they help promote this to their extended networks as well?
  • Promote via email – Do you already have a database of email addresses? Send the invite out via email and include the link to the Facebook event.
  • Utilize your colleagues and friends – Have guests, employees, friends, etc. share with their networks to broaden your reach.
  • Send out a press release – If you can get local press to attend (in-person or virtually), they will help to spread the word and gain publicity for your event.

Planning is Key

Now that you have spread the word and generated interest, you need to organize the event. A virtual event isn’t the same as an in-person event. You need to be able to engage your attendees even when you’re not face to face. A well-developed plan and a smooth-running event will help you do just that. There are technical considerations you need to make as well, but we’ll talk about that in a moment.

Start with the Goal in Mind

When you start developing a plan, first define what the goal of the event is. Once you have your goal in mind, you can plan out what you need to do to achieve that goal. Do you want people to know about the excellent patient care you offer? Do you want to drive patients to a new location? Are you trying to increase awareness about a new product? Each of these examples will have a slightly different plan.

Lay out the Logistics

Take a look at the length of your event and break it out into beginning, middle, and end. Depending on what your overall goal is, set up the plan for the event. Some ideas may include a virtual tour or a look behind the scenes, a promotion for participants, a ribbon cutting ceremony, a giveaway, a speaker, etc. Each portion of the event should be engaging for viewers. Unlike an in-person event, you don’t need time built in for mingling or networking. Be thoughtful, keep it concise and keep your viewers in mind.

Add a Little Incentive

While many people will attend just to support you, you can also use incentives to entice more people. Offer something to everyone who joins the Facebook Live (a gift, discount, etc.). If you promote this ahead of time, it will increase the number of viewers and it will also help to drive business following the event. You can also design a more significant contest or giveaway that you can promote and then announce a winner during the Facebook Live.

Tips and Tricks for a Seamless Virtual Event

A virtual event does involve technology, so it’s important to be prepared. Here are just a few pieces of advice that will help ensure your event goes smoothly.

  • Stick to the plan (generally) – It’s live so you may go off script a bit, but in general, if you stick to your plan you will feel more prepared and your confidence will come across to the audience.
  • Use a tripod and mic – Nothing is more frustrating than bad audio or visual when you are trying to watch something virtually. Invest in some equipment (you can get them inexpensively on amazon)and test it beforehand.
  • Make sure lighting is good – See above. You want people to see what you are showing them.
  • Make sure bandwidth is sufficient – You’re depending on the ability to stream your event. Make sure your connection is reliable.
  • Make sure the background reflects the brand – We all know people stage photos (eh-hem, you who just took a photo of your kids and your house looks spotless, meanwhile there is a pile of unfolded laundry in the corner). Same concept. Show the viewers what you want them to see (even if you have to stage it!).
  • Use a horizontal frame – This will give viewers a more comprehensive view of the pharmacy or location and allow them to feel like they are part of it.
  • Interact with the viewers – Pretend you are in the same room. Acknowledge people who join, give people shout-outs, encourage questions, address comments, etc.
  • Have back-up – Backup might include a person – someone to help with the technical aspect or problem solve any issues that may arise. That also includes backup equipment (computer, phone, etc.).

That’s a Wrap. Now What?

You’ve made it through your event with minimal footage for the blooper reel and you’re feeling good. It’s not time to sit back and relax just yet. Following your virtual event, there are steps you will want to take to maximize and repurpose the content.

Once you complete the Facebook Live and post it to your page, you will want to add some context around it. Edit the post with a brief and actionable summary about the event and tell people why they should watch. You can also add closed captioning to the video since many videos on Facebook are listened to without sound.

Once your video is cleaned up, you will want to address comments and answer questions that you maybe didn’t get to during the live broadcast. This will continue the conversation and the engagement with your audience. Continue to keep an eye on the post in case questions and comments come in from people who didn’t watch it live.

Finally, don’t forget to repurpose the video. Post it on your website, on other social channels, create a blog about it, etc. The create thing about a virtual event is that it doesn’t have a hard end time. You can extend the shelf life of the video and reach more people by continuing to push it out to your network. Think “In case you missed it” or “Did you miss our grand opening? Check it out now for a special discount code.”

Don’t Stop There

Your pharmacy deserves to thrive and there are many (both traditional and out-of-the-box) strategies you can implement today to make that happen. For more marketing ideas and advice to help grow your pharmacy, check out the webinar – How to Market Your Pharmacy During COVID-19, our Podcast – Marketing Strategies for Your Pharmacy and the blog – Marketing Your Pharmacy: Four Steps to Get You Started.

pharmacy services

A Changing Industry and the Future of Pharmacy

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Your pharmacy is your business, your livelihood. The industry is evolving, and you need to evolve with it so you aren’t left behind. In this blog we will explore the shift, what the future of pharmacy looks like, and the easy way you can gain more control over your business and serve your patients better. The bottom line is you deserve to be paid for the services you are providing.

A Changing Industry

Our lives have been turned upside down by COVID-19. We are experiencing a new normal. Our healthcare industry especially, has been pushed to its limits. Beds are full, and the long-term concern is whether we will have enough healthcare professionals to provide essential care.

The US doctor shortage preceded the pandemic, but this situation has exposed the severity of it.

Independent pharmacists are positioned to play a more significant role in healthcare than they currently do. In fact, we are seeing evidence how essential pharmacists are as we navigate the COVID-19 situation. This evolution has the potential to help patients while impacting the entire healthcare system for the better. The fact is that pharmacies are the most convenient and accessible place for patients to receive the care they need. Our pharmacists are on the front lines of healthcare and deserve to be recognized as providers.

Take vaccinations for example. As pharmacists administer them, inoculation rates increase and the burden on hospitals and doctors decreases. Independents are more than just medication dispensing machines, they are healthcare providers with a depth of knowledge and the education to prove it. It is critical that we begin to expand their role to provider status. Pharmacy has transformed over the years and our communities need these front-line healthcare workers more than ever.

Why is the Future of Pharmacy Happening Now?

Frankly, it’s long overdue. In the last several years pharmacies have struggled – especially with the pressures of higher DIR fees, aggressive audits and other clawbacks. The typical pharmacy has somewhere between 90-97% of their revenue coming from the prescription part of their business, under the control of the PBMs, which means that they don’t control a majority of their revenue stream.

It is no longer sustainable to sit back and wait for things to change. The good news is that there is a way forward. Diversification allows pharmacy owners to take control by creating new revenue streams. By working at the top of their license, they can bring services to their pharmacy that will increase their bottom line. They will also provide accessible care, which will positively impact the healthcare industry overall.

Pharmacy Services to Help Patients and Your Bottom Line

Pharmacists have the means and the knowledge to provide healthcare services to patients. Think about the time you spend consulting with patients or administering immunizations, you should be compensated. But how? Implementing a Service-Based Pharmacy model allows for easy medical billing so pharmacists can get paid. It is the future of pharmacy.

The good news is that you don’t have to change your operations. Start small, within your current scope. That’s the low hanging fruit. That’s where you can see immediate results.

1 FLU SHOTS: Flu season will be here before we know it and the pharmacy is the most accessible place for your patients to get their shots.

The flu shot on a commercial plan averages $142. If you administer 50 shots, that’s $7,100*.

2 EDUCATIONAL CLASSES: Engage your patients and help them learn more about a topic that is top of mind for them (smoking cessation, weight loss, wellness). This is fully covered by insurance for in-network providers so most patients can attend at no cost.

Educational classes can range from $50 – $150/hr per patient. If you hold 3 classes a month for 15 patients each at an average of $100, that’s $4,500*.

3 15-MINUTE CONSULTATIONS: You are already spending time with your patients, you should be charging for your time. Whether it’s substance abuse or diabetes, you have an opportunity to formalize these consults and get paid.

Consultations average $142. If you have 20 consults a month, that is $2,840*.

*These examples are based on national averages, rates vary by plan and state.

Opportunity to Scale with Service-Based Pharmacy

While these are just a few things that are easy to implement, there are many opportunities to build upon this, when you’re ready. Whether you have a small pharmacy and are working the bench yourself, or you have multiple locations with several employees – you are able to scale the program to work within the framework you have already created. You don’t need to add extra work. You can bill for the pharmacy services you are already providing. No added work for added revenue? Yes, please!

Reduce reliance on PBMs – reduce your percentage of revenue that flows through a PBM.

Improve cash flow – increase your margins with high margin professional services revenue.

Add new revenue streams – get paid for the non-dispensing services you already provide.

Improve patient care – give your patients the care they deserve.


service-based pharmacyHow does the Service-Based Pharmacy model work?

Service-Based Pharmacy is a turn-key program that provides pharmacies with the means to provide professional healthcare services. This model enables you to continue to provide excellent education and consulting to your patients AND get paid for it, outside of the PBMs influence. You can bill for the services you already provide directly to the medical insurance plans as an in-network credentialed provider.

  1. Get Credentialed. Become an in-network provider for Medicare, Medicaid, and commercial plans of your choice.
  2. Utilize an EHR. Get access to an easy-to-use, fully certified EHR platform for maintaining patient charts and clinical notes.
  3. Innovate. Continuously develop new ways to use the tools to improve patient care and monetize your services.
  4. Bill for Your Services. An easy-to-use platform makes medical billing simple and having access to an affordable complete do-it-for-you option can eliminate all billing challenges.
  5. Further Your Education. Learn to think like a provider, understand your scope of practice and be guided through the intricacies of medical plans.
  6. Implement. Get the training and coaching to evolve and bring services to life.


Act Now

As we move into the next evolution of the healthcare industry and the future of pharmacy, you as pharmacists will undoubtedly make a difference in the lives of your patients. You went to school to perform at the top of your license and to help people. The future of pharmacy will allow you to do just that. Your pharmacy is likely already providing many services for patients and now you just need to set up the infrastructure so that you can perform at the top of your license and get paid for it.

Visit the PDS Service-Based Pharmacy page to learn more.

What Can Your Pharmacy Data Do?

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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 American Associated Pharmacies (AAP). Read on for their sponsored blog post about building your bottom-line.

Data is everything. It can drive business growth, increase profitability, and improve your relationships with your patients, but only if you use it.

Here are just some of the key categories of data you should be interested in, and suggestions for how to get started acting on it.

Questionable and Open Claims

It’s important to monitor all claims going through your pharmacy. A good practice would be to double check any claims outside of some key financial rules that make sense for your business, to help avoid negative outcomes. If no copay is collected on a cash claim, was it processed correctly? If the profit margin on a prescription is less than the cost, are you purchasing that drug correctly?

Be sure to monitor and resubmit claims that are reversed. It’s also to your advantage to monitor changes in Average Wholesale Prices and consider other claims to resubmit. One pharmacy generated $2,000 in additional revenue in only a week using a tool to access up-to-date AWP data.

Timeliness of Refills and Missing Patients

Does your pharmacy monitor when patients are due for refills, or if patients disappear altogether? Using that data to stay in contact with these patients can mean better care for them, and more revenue for your pharmacy. Pharmacies using one tool have proven that contacting just a few dozen of these patients in a month can mean an average of $11,000 or more of increased revenue. With the added benefit of increasing adherence and Star Ratings, along with building essential loyalty with patients who feel cared for, it’s data you can’t afford to ignore.

 

Other Marketing and Outreach

Marketing and outreach are important ways to take the data you already have and apply it. Patient data can tell you if you have patients nearing 65 who may need help selecting a Medicare plan; it can tell you if you have brand new patients who could use some outreach to build a relationship; it can tell you if there are prescribers in your area who aren’t sending prescriptions your way, or if there are others who may make up a large share of your fills. Data can help you target your marketing efforts and spend less to do more for your pharmacy’s health and growth.

These are only some of the opportunities that can deliver great benefits from the data your pharmacy collects on a daily basis! The good news is, there are tools like AAP’s ProfitAmp that can sift through your dispensing, patient, and prescriber data and provide easy-to-use reports with immediately-actionable data.

Saying pharmacy is a busy profession is an understatement, especially considering current events. However, watching these metrics as much as possible can be a key way to optimize profitability.

About the Author

As a cooperative of over 2,000 member pharmacies with an independently owned warehouse and specialty pharmacy and qualified preferred partners, American Associated Pharmacies (AAP) is so much more than a buying group. AAP provides the tools and resources needed for members to improve their bottom lines, such as business intelligence tools, a powerful proprietary ordering system that syncs across devices, and more! Visit RxAAP.com/ProveIt to learn more.

Planning for Success with Adherence Packaging in Your Independent Pharmacy

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Here at PDS, we take pride in highlighting some of our incredible 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. Read on for their blog post about planning for success with adherence packaging in your independent pharmacy. 

You’ve no doubt heard the saying, “If you fail to plan, you’re planning to fail.” Marketing adherence packaging is no different. If you begin with the end in mind, you’ll have a much better chance of success.

At RxSafe, we’ve worked with hundreds of independent pharmacy owners, including a few who have successfully added 15-30 new adherence patients each and every month. How did they do it? It starts with a plan, which incorporates best practices as well as taking into account your local market and its needs, your unique value proposition, your competition, the strengths of your team, and other factors.

“It’s definitely not Field of Dreams, like ‘If you build it, they will come’… you really have to build it and then go out and tell everybody about it,” says PDS member Matthew Massey, pharmacist and owner of Massey Drugs, with three stores in Florence and Tuscumbia, Alabama. “You have to educate your patients, you have to educate the doctors and your community that you’re doing this, and why it’s important. But I really believe you can grow this quickly, pick up new customers and take care of those customers better than they were being taken care of before. To me, it’s all about what’s in the best interest of the patient.”

Like Massey, fellow RapidPakRx owners and PDS members Bruce and Lisa Kocian have a lot of experience with compliance packaging.

“When you’re starting out, I would say to focus on communication,” says Lisa Kocian. “This is a new concept for a lot of people, and they don’t necessarily understand it, and they may have expectations that are not realistic. And so, we’ve learned to thoroughly explain the program to the patient, that we’ll have to sync their prescriptions first, and then we can get them in the RapidPakRx. People are so excited about getting their prescriptions in the packaging, they want them immediately in the packaging. And sometimes it takes a refill cycle to get everything synced up. But communication and doing a really good job of explaining what they should expect from the program, I think makes things run smoothly.”

 

PDS member Clayton Gilde, owner of McBain Family Pharmacy, recommends a multi-pronged marketing approach.

“We usually get about seven patients per week from the PakMyMeds Network (social media advertising), Gilde explains. “When we get a lead, we’ll usually reach out to them and ask them how they’re currently taking their medications. Sometimes the patients are taking it from another provider like PillPack, or something else, and they’re happy to switch over to someone local.

One thing we noticed was that we put in the PakMyMeds box right by the register, and by the drop-off area, it was able to spark a lot of conversations with our patients that are already using us. We also use ads in local newspapers and radio explaining the PakMyMeds program and how it can benefit patients.”

The three most important things to do when adopting automation for your synchronization program are:

  1. Make a plan for marketing and promotion.
  2. Effective communication and set proper expectations.
  3. Don’t rely on one marketing approach, use a variety of methods to get the word out.

About the Author

RxSafe is the leader in robotic automation that improves patient safety and boosts profitability for retail pharmacies. Our RapidPakRx™ adherence strip packager enables pharmacies to run a 30-day med cycle at the lowest possible cost. RxSafe’s BlistAssist™ medication blister card packaging assistant improves the manual preparation and verification of single or multi-med blister cards. Our RxSafe 1800™ system helps pharmacies achieve better accuracy & speed, space savings, narcotics security, and inventory management. Learn more at www.rxsafe.com.

How Vaccination Programs Can Bring Profits to Your Independent Pharmacy

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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 Drug Topics. Read on for their sponsored blog post about how vaccination programs can bring additional profits to your pharmacy

The majority of pharmacies in the United States now offer vaccinations, but there is still a significant opportunity to turn a well-run vaccination program into a profitable

endeavor that benefits both patient and pharmacy.

Many adults still fail to get the recommended vaccinations each year. According to the CDC, just 37.1% of adults received the flu vaccine during the 2017-2018 flu season. This presents a significant opportunity for independent pharmacies to improve these numbers by expanding their immunization efforts, marketing their programs to the community, and relying on what makes a pharmacy a unique health care setting.

“Pharmacies have a huge advantage right off the bat of being readily available and accessible,” said Beverly Schaeffer, RPh, of Katterman’s Sandpoint Pharmacy in Seattle, WA.

Katterman’s was one of the first to offer vaccines—starting their program back in 1996. Schaeffer said the pharmacy had been hoping to give 300 vaccines but found themselves administering 1,200. Since then, the program has continued to grow and the pharmacy now offers all available vaccines in the state and can even administer to children and infants.

“All pharmacists could be doing more immunizations than they are if they wanted to,” she said.

Expanding immunization efforts can not only improve public health, but it can also serve as an increased revenue stream for community pharmacies. Close to 100 million Americans get the flu shot each year, translating to $4 billion to $5 billion in revenue, PBA Health reported.

Immunizations outside the influenza vaccine can often bring in even larger administration fees for pharmacies. “Almost all immunizations pay an administration fee that varies from plan to plan, but you get paid for the vaccine plus an administration fee,” Schaeffer said.

Vincent Hartzell, PharmD, president of Hartzell’s Pharmacy in Catasauqua, PA, said successful immunization programs not only provide revenue for a pharmacy on their own, but they also often drive other areas of business. “Vaccines have allowed us to provide marketing and attract new customers,” he said.

The most effective marketing strategies, he said, don’t always have to be costly and can be as simple as an effective social media post, informing local physicians and area senior centers of the pharmacy’s immunization services, or using banners and signs.

Schaeffer has found one of her best marketing tools is a sandwich board placed outside the pharmacy each day that highlights different services such as its tetanus shots, travel vaccines, or the highly sought-after shingles vaccine.

Her pharmacy does a significant amount of business in travel vaccines, so she also tries to drive other store business through a separate travel aisle where customers can find everything needed for an upcoming trip; anti-diarrhea medications, rehydration packets, eye drops, all in one convenient area.

Hartzell believes it’s important that all the pharmacists in a community pharmacy be trained to give immunizations so that there is always an available staff member whenever a customer arrives at the store.

To improve the workflow, he said, non-pharmacist staff should also be a critical aspect of vaccination programs. Those workers should have ways to identify patients who may be behind on immunizations or could benefit from annual vaccines such as influenza and pneumococcal vaccines.

“Make sure that your technicians know how to do the billing, make sure your technicians know how to fill out the consent forms because that’s the stuff that you don’t need a pharmacist for,” he said.

Overall, Schaeffer and Hartzell agreed, successful vaccination programs can yield big rewards for community pharmacies and their patients.

About the Author

Drug Topics is the leading pharmacy journal for retail, health system and specialty pharmacists. Drop Topics provides news, information and trusted perspectives through peer-based forums and opinions, relative to all aspects of pharmacy practice and also offers direction on elevating your profession and career. Check it all out at drugtopics.com.

Solutions to Build Your Independent Pharmacy’s Bottom Line

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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 American Associated Pharmacies (AAP). Read on for their sponsored blog post about building your bottom-line.

Your Brand Rx cost of goods is one of the largest factors affecting your independent pharmacy’s bottom line, but it isn’t the only one. You may have found the right buying group or wholesaler, but inefficient processes or small losses that may seem insignificant now could mean a huge difference for your profitability later.

growing pharmacy profits

Let’s look at some of the things you should watch for when evaluating the best independent pharmacy business solutions to build your bottom line.

Don’t Lose Your Specialty Patients

Patients on a specialty drug have an average of 13 additional prescriptions.* A majority of these are maintenance prescriptions your pharmacy can fill, but only if these specialty patients continue to come to your pharmacy. They may not return if they are directed to a pharmacy other than yours for their specialty needs, and the specialty drug market is one of the fastest-growing. Specialty drugs are expected to account for 50% of the drug market as soon as this year (2020).

It’s in your best interest to be able to help patients who need these medications, and the good news is that you don’t have to spend tens of thousands of dollars to become certified as a specialty pharmacy yourself. There are programs available to help you keep your specialty patients in your pharmacy while making sure they’re provided with quality specialty care.

*According to Specialty Pharmacy Times Magazine

Keep A Unique Front-End in Your Pharmacy

On average, front-end products carry a profit margin of 15% higher than on prescriptions. This average of 38% for OTCs and other front-end merchandise, much greater than the average of 22% on prescriptions, is a clear opportunity. Are you taking full advantage of that knowledge?

Rather than only stocking items your patients could find in any big-box retail store, you have the opportunity in your pharmacy to be unique. Basic supplements like vitamins are essential and can bring in a hefty amount of revenue. Don’t leave them out! But you can do more. You can carry the variety of over the counter products that big-box stores are spread too thin to offer.

There is a wealth of niche markets to branch into. From specialized health products to pet pharmaceuticals and diabetic footwear, do what only you can do as an independent pharmacy. Take your queues from your community or target market. Attract patients who might otherwise have to travel long distances to find the products they need or order blind from online sources. They’ll be glad you’re there.

Streamline Ordering Within Your Pharmacy

Save precious time by streamlining your ordering process. Having a plan and a robust ordering system will go a long way in this area. Make sure your system will keep an order queue consistent across devices to avoid redundant spending, automatically submit orders to keep you from missing deadlines and make the process as efficient as possible. Don’t waste time typing in numbers, dragging bottles to a stationary scanner, or ordering from multiple websites.

Do your research and find a solution that offers all the flexibility you need in your setup!

About the Author

As a cooperative of over 2,000 member pharmacies with an independently owned warehouse and specialty pharmacy and qualified preferred partners, American Associated Pharmacies (AAP) is so much more than a buying group. AAP provides the tools and resources needed for members to improve their bottom lines, such as business intelligence tools, a powerful proprietary ordering system that syncs across devices, and more! Visit RxAAP.com/ProveIt to learn more.

Flu Season Essentials for Your Patients

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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 American Associated Pharmacies (AAP). Read on for their sponsored blog post about flu season essentials for your patients this flu season.

It’s that time of year where we experience an increase in cold and flu activity. Patients will be turning to your pharmacy for medication and remedies that they can rely on to get them through the winter.

Popular Supplements to Keep in Stock

According to the Nutrition Business Journal, the US supplement industry has seen an increase of 5-6% each year over the last two years, with growth expected to continue at that rate or higher until at least 2022. Make the most out of this opportunity for profitability by supplying your community with OTC products that carry valuable health benefits.

Elderberry

Elderberry syrup is growing in popularity as a powerful alternative to both prevent and fight cold and flu. It has been tied to a significant reduction in the severity and duration of symptoms in studies. Patients taking Elderberry syrup reported symptoms clearing up an average of four days earlier than those taking a placebo.

The syrup has been nearly impossible to keep on pharmacy shelves in recent flu seasons, and the market is expected to continue to grow at an accelerating rate of over 7% until 2022 at the very least. Don’t miss out! Your patients will thank you for keeping this new staple in stock.

Vitamin C

Studies have shown Vitamin C can boost your immune system, and possibly even help protect against heart disease, cancer, and stroke. This safe and effective supplement is a strong preventative for flu season. It’s recommended that the average adult receive at least 75-90mg daily for peak effectiveness.

Vitamin D

Vitamin D is particularly useful in areas with harsher winter weather. When the sun is hiding behind clouds, it’s harder to soak up enough! Vitamin D is essential to the body’s immune system and bone strength, but our bodies cannot store it for extended periods of time. Supplements can help combat this and will also keep your patients happy and healthy.

Iron

Iron is another immune booster. It has shown to help keep energy levels up during short, dim days. Iron is essential to blood flow and oxygen transfer in the blood, making it a key component to heart, lung, and neurological function. Deficiencies are common even here in the US, with an estimated 8-12% of Americans not receiving enough iron in their diets. Women, young children, and patients with heart conditions are among some of the most likely to have these deficiencies and could most benefit from iron supplements.

Zinc

Zinc is known as another preventative supplement that can help to prevent the common cold if used regularly. Similar to elderberry, it strengthens the immune system and can aid in reducing the length and severity of a common cold. The average adult needs about 9.5mg a day, while women need about 7mg.

Cold and Flu Shots and Medications

While supplements are popular and can help prevent sickness or shorten a bout already underway, encourage your patients not to pass on a flu shot.

If your patients do come down with the flu, a cold, or a fit of allergies, you can be ready. Keep plenty of flu medication, nasal spray, and cough syrup on hand, as some of these–particularly a prescription like Tamiflu–can grow scarce as the season drags on. Stock up and stay ahead of the rush as much as possible to avoid losing potential income.

From AAP’s Member-Owned Warehouse for Cold and Flu Season

Find these remedies and more at store.apirx.com.

  • Supplements: Vitamins such as C, D, & E; Iron; Zinc; and more
  • Medications: Generic Tamiflu, Fluticasone nasal spray, Promethazine-Codeine cough syrup, Mucinex, and more
  • Other: Nasal strips, thermometers, socks, and other winter essentials

About the Author

As a cooperative of over 2,000 member pharmacies with an independently owned warehouse and specialty pharmacy, the nation’s 4th largest PSAO, and qualified preferred partners, American Associated Pharmacies (AAP) is so much more than a buying group. AAP provides the tools and resources needed for members to improve their bottom lines. Visit RxAAP.com/ProveIt to learn more.

Section 179 Tax Deduction.

Smart Year-End Tax Moves: Section 179

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Are you thinking about purchasing new equipment to offset income or to begin expanding your services to improve your business? Make the purchase and install it by the end of the year to qualify for a Section 179 deduction.

Section 179 Tax Deduction.

Why Leverage Section 179?

The tax code is certainly a beast that many of us never want to think about and yet if you understand it, you can take actions that will benefit you and your pharmacy. Pharmacy automation improves operational efficiency while also expanding services. An investment in equipment is often the best step to improving automation. You can leverage Section 179 to help attain pharmacy automation at the lowest cost is possible.

What is Section 179?

Section 179 refers to a tax deduction that allows businesses to deduct the full purchase amount of qualified equipment in one large deduction rather than having to slowly depreciate the equipment over many years. For tax year 2019, this allowance can be as high as $1,000,000. This deduction goes directly against any business income for this year and if your deduction is higher than your income, you can carry any remaining deduction over to future years!

What kind of equipment will qualify?

Equipment will qualify at any price point, there is no minimum purchase amount. It also does not have to be new equipment; it just needs to be new to you. Since this is a business deduction, the equipment must be used for business purposes more than 50% of the time. If you want to take this deduction in 2019, you need to have the equipment installed in your pharmacy by December 31, 2019.

Are there any changes coming for Section 179?

While we can’t predict the future, the Section 179 deduction seems to be secure but it’s important to note that significant changes in politics can affect the tax code. Section 179 was recently increased from a maximum of $500,000 to its current level of $1 million.

Section 179 at a Glance

  • It can only be used to offset business income
  • The equipment must be new to you
  • It must be installed before the end of the year
  • Maximum amount is $1,000,000 for 2019
  • Any remaining amount not offset by 2019 income can be rolled over to offset 2020 income

RxSafe RapidPakRx Will Qualify for a Deduction

A popular piece of automation for independent pharmacies is the RxSafe RapidPakRx strip packager. Pharmacy owners choose this equipment because of its speed and small footprint. It also enables them to compete against Amazon PillPack by having their own compliance packaging service.

Priced at $175,000 ($165,000 for PDS members), it will certainly qualify for a Section 179 deduction as a business equipment purchase if installed by the end of the year. Time is running out but RxSafe still has the ability to take orders and get them installed before the deadline. If you would like to learn more about the RapidPakRx and how it can help you grow your business, please reach out to RxSafe here.

You can also learn more about Section 179 at RxSafe’s resource page.

Can you benefit from Section 179?

The answer is maybe. If you are getting regular monthly financials and having strategic calls with your accounting team then you probably know what your year to date income looks like. If you are not receiving accurate financials or pharmacy specific accounting advice, please reach out to our PDSfinancials team to discuss how critical financials are for you to make smarter business decisions and to operate your pharmacy at peak performance.

To help you get caught up with your 2019 financials, PDSfinancials is offering to rebuild your entire 2019 financials for free for all new PDSfinancials members in 2019 (a $10,000 value!). Even if you are not positive you have income to offset this year, you could still make those strategic equipment purchases that will help you produce a profit in 2020 because the Section 179 deduction is allowed to be carried over to future years’ tax returns.

You deserve to have the best insight into your pharmacy’s financial performance. Schedule a call with the PDSfinancials team to learn more.

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